J.P. Morgan buys $99bn ANZ custody services
Friday, 20 November 2009 12:40pm
J.P. Morgan's Worldwide Securities Services division has bought ANZ's Custodian Services business - a move that raises the group's assets under custody by another 36 per cent to $370 billion and gives J.P. Morgan an entry into the local sub-custody sector.
The transaction was completed for an undisclosed sum and excludes ANZ's securities lending division.
Jane Perry, chief executive J.P. Morgan WSS in Australia and New Zealand said that prior to the deal, the group had little presence in the local sub-custody market.
But after the deal, J.P. Morgan WSS becomes the only firm in the local market that can offer the full range of custody services, including global, local, sub-custody and fund administration services to domestic and international institutions and fund managers.
It also means the Sydney-based firm will have more presence in Melbourne and Wellington, where ANZ's Custody Services have key clients.
Globally, the division already manages US$14.9 trillion in assets under custody and US$5.1 trillion in assets under administration.
Perry said they will offer employment to staff currently supporting ANZ's custody business, excluding those in securities lending (which wasn't part of the transaction). There will be a progressive transfer of the business and staff in 2010.
To date, J.P. Morgan WSS has spent US$500 million annually on its technology infrastructure.
"We will support the continued growth of this business with ongoing investment," said Laurence Bailey, chief executive of J.P. Morgan WSS, Asia Pacific.
Meanwhile, Shayne Elliott, ANZ Group managing director, institutional, said the sale continues the bank's process of refocusing its institutional business on their core banking priorities in Australia, New Zealand and Asia.
Michelle Baltazar
