In the words of one private banker, the volume of equity non-flow structured products has “fallen off the cliff”, making up less than one percent of the total volume of structured products sold at private banks. Team sizes are minimal and the “theme du jour” is survival. Remarkably, in this adverse environment, J.P.Morgan, having demonstrated consistency and commitment through the financial crisis, has established itself as the premier industry provider of equity non-flow structured products. This success, according to private banking clients, is down to a plethora of factors, including J.P.Morgan’s solid creditworthiness, trade ideas, exclusiveness, performing products, and competitive pricing.
“Pre-2008 many products were created and sold off the shelf in the market” says Lemuel Lee. “Since 2009 we have modified our approach from product creation to distribution by listening effectively and, subsequently, customising products to our clients’ needs, which has worked well for us.”
Lee and his team take a fastidious and collaborative approach in their work, typically dealing with distributors at multiple levels, right on through to end investors. “We understand each private bank and its client base and customise around it. Our business is solution-driven – we keep evolving,” concludes Lee.
Undoubtedly, Lee’s pride is heightened by the fact that product sales are well-distributed across a range of different distribution networks, their wordof- mouth popularity propelled by strong product returns. For J.P.Morgan, therefore, being recognised by its private banking clients as the Best Provider of Equity Non-Flow Structured Products for 2012 is testament to its focus on the needs of the client and a sign that Lee and his team are getting the fundamentals right.