In 2013, J.P. Morgan made revolutionary changes to its business to ensure that the organisation was structured in a client-centric way. Rather than approaching private banks in an independent fashion, separated by different asset classes, J.P. Morgan decided to present a single face to its clients, to both enhance the level of conversations while weaving through and between asset classes and explore opportunities to offer cross-asset solutions. Whilst the move is something others in the industry have previously done, J.P. Morgan was able to leverage off existing divisions that were historically strong contenders within the market.J.P. Morgan’s platform has mirrored this single face initiative. Unlike before, where offerings may not be displayed in a single location, J.P. Morgan has now centralised all asset classes and offerings under a single website, J.P. Morgan Markets, where the investment bank can offer products ranging from a plain-vanilla accumulator to complex structures with unique underlyings originating beyond traditional markets.
In addition, J.P. Morgan debuted its new electronic multi-asset synthetic prime brokerage platform, NEXUS, this year which consolidated a plethora of individual platforms into a single user interface. Advisors and discretionary portfolio managers can enquire about a specific structure and pick and choose from an entire universe of underlyings. The platform has also introduced actively-managed certificates to allow greater flexibility and diversification by allowing adjustments to an index or a basket of securities to enhance performance. Furthermore, various features and mechanisms such as leveraging, hedging and principal protection can be embedded all within one instrument. One instance where J.P. Morgan adeptly capitalised on the technology was to help clients gain upside equity exposure to the Japan market while hedging the falling yen on a rolling basis, all in a single product.
J.P. Morgan appears to be focused in bringing the most comprehensive range of products and solutions to Asia’s private banking clients with an interface and structure that stresses centralisation and simplicity. The American institution has leveraged off global resources across trading and research teams, while ensuring stability and sustainability with consistent and significant streams of revenue from its bread-and-butter business in its flow business and the quality of its products and services has not gone unnoticed by the industry. As a testament to this, J.P. Morgan has emerged as the Asian Private Banker Structured Products House of the Year 2013.