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JPMorgan to administer Schwab IM’s SMA operations

FWR Staff 4 June 2006

JPMorgan to administer Schwab IM’s SMA operations

Discount broker’s asset manager impressed by outsourcers rapid conversion. Charles Schwab has selected JPMorgan Worldwide Securities Services to administer its 5,000-account, $180-million separately managed account (SMA) program.

“We have been very pleased with the technology platform and the operations resources that JPMorgan has built,” says Ed Patron, head of technology at Charles Schwab Investment Management (CSIM). “Their ability to implement in such a short period of time has been equally impressive.”

Right quick

Patron is referring to JPMorgan’s three-month conversion of CSIM’s SMAs to its system. “The industry average for converting separately managed accounts is normally far longer,” Schwab says in a press release.

In fact can take six months to a year to complete such a conversion, according to industry experts.

JPMorgan product specialist Steve Boyle says turning the conversion around so speedily was simply a matter of meeting CSIM’s requirements. “We were delighted to deliver,” he says. “We look forward to providing any and all services that CSIM needs to successfully expand their [SMA]-product offering.”

JPMorgan will provide a number of services that automate back office functions like shadow accounting, account reconciliation, new account setup, performance calculation and account maintenance. –FWR


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