J.P. Morgan Asset Management has joined up with FASCore to provide record keeping solutions for the asset manager's small-to-midsized plan clients
J.P. Morgan Asset Management has joined up with FASCore to provide record keeping solutions for the asset manager's small-to-midsized plan clients.
The service the two firms will provide is called Retirement Link, and it will allow FASCore, a subsidiary of Great-West Life & Annuity Insurance Company, to deliver bundled recordkeeping solutions for plans with up to $40 million in assets.
Further, J.P. Morgan will move some of its existing small-to-midsized plan business to Retirement Link over the next six to 12 months.
A 20-year-veteran in the small-to-mid market, J.P. Morgan has historically worked with The Hartford Financial Services Group Inc., where the latter would provide operational and administrative services as a record keeper.
In March, Hartford said that it would seek sales or strategic alternatives for its individual life business, its broker-dealer Woodbury Financial Services and its retirement plans business.
As a result, J.P. Morgan expects clients who were working with Hartford to shift over to FASCore.
“We're going to be looking at everything on a client by client basis,” said Julia Bates, managing director, J.P. Morgan small-to-midmarket retirement plan business. “The core of our business has been on the Hartford program; they've been a terrific partner over the years. [Retirement] is not a business they're focused on in the long-term, so it's likely those clients are moving off the platform in the next six to 12 months.”
Those who move over will still be paying the same fees as before but can expect an upgrade in services, including enhanced plan sponsor reporting, Ms. Bates said.
“This is part of our commitment to retirement,” she said. “We've added significantly to the management team at the mega- and large-plan end, and we're investing in the small-and-mid sized market. We're eager to see it grow.”
Bob DeMallie, a spokesman for Hartford, did not immediately provide comment.