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J.P. Morgan Signs Agreement to Sell its Large-Market 401k Recordkeeping Business, J.P. Morgan Retirement Plan Services, to Great-West Financial®
New York– April 03, 2014
J.P. Morgan Asset Management has signed an agreement to sell its Kansas City-based 401(k) recordkeeping business, J.P. Morgan Retirement Plan Services (RPS), to Great-West Financial®. The transaction, which will not have a material impact on JPMorgan Chase's earnings, is expected to close during the third quarter of 2014, subject to the receipt of regulatory approvals. Terms of the transaction were not disclosed.
"We believe that this deal is very complementary. Great-West Financial is one of the largest and most respected retirement plan administration firms in the industry - with an existing expertise in serving large plans - and we believe that our clients and employees will benefit from the acquisition," said Michael Falcon, Head of Retirement at J.P. Morgan Asset Management. "Clients of RPS will experience continuity in the people, products and services they are accustomed to, while gaining the technological excellence and deep product capabilities offered by Great-West Financial, an established provider to public and private plans."
The transaction includes the large- to mega-sized plans, and does not include J.P. Morgan's business in the small plan space administered through Retirement LinkSM, which is a distinct and separate offering. J.P. Morgan will continue to offer and even expand its efforts to serve the growing market in the small plan space.
J.P. Morgan and Great-West Financial are committed to providing the same service and support that clients expect with no disruption as a result of the acquisition. Employees of RPS will become Great-West Financial employees upon close. The office location in Overland Park, KS, will be retained by Great-West Financial.
With $109 billion in defined contribution assets under management and $1.6 trillion in total AUM, J.P Morgan Asset Management is a leading provider of investments, retirement plan services and thought leadership serving companies, advisors and individuals globally.
"We continue to rapidly grow through all areas of the retirement marketplace by delivering investments, including our growing SmartRetirement target date funds, a distinct small-market defined contribution plan offering, and innovative insights and tools including the award-winning Guide to Retirement," said Falcon. "Our mission is to be our clients' premier partner in helping individuals achieve a financially sound retirement."
Robert L. Reynolds, who was recently named President and Chief Executive Officer of Great-West Lifeco U.S., the holding company that owns Great-West Financial and Putnam Investments said, "With today's announcement, we are taking a powerful step toward addressing the complex and evolving needs of millions of working Americans - through the combination of expertise, talent and business scale being created at Great-West Financial."
About J.P. Morgan Asset Management - Retirement
J.P. Morgan Asset Management is a leading comprehensive retirement solutions provider dedicated to improving individual retirement outcomes. J.P. Morgan Retirement has defined contribution assets under management of $109 billion. J.P. Morgan Retirement Plan Services provides bundled recordkeeping services to more than 650 clients and two million plan-level participants, representing more than $160 billion in retirement plan assets (as of December 31, 2013).
About J.P. Morgan Asset Management
J.P. Morgan Asset Management, with assets under management of $1.6 trillion, is a global leader in investment management. J.P. Morgan Asset Management's clients include institutions, retail investors and high-net worth individuals in every major market throughout the world. J.P. Morgan Asset Management offers global investment management in equities, fixed income, real estate, hedge funds, private equity and liquidity. JPMorgan Chase & Co. (NYSE: JPM), the parent company of J.P. Morgan Asset Management, is a leading global financial services firm with assets of approximately $2.4 trillion and operations in more than 60 countries. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.
About Great-West Financial
Great-West Financial® is a registered mark of Great-West Life & Annuity Insurance Company. Headquartered in metro Denver, Great-West Financial administers $243.5 billion in assets for its 5.4 million retirement, insurance and annuity customers.
Great-West Financial is the nation's second largest underwriter of life insurance sold through banks (BISRA Life Report, Third Quarter 2013, based on total premiums at Sept. 30, 2013) and fourth-largest retirement plan record keeper (Pensions & Investments, March 2014, based on total participant accounts at Sept. 30, 2013). It is an indirect, wholly owned subsidiary of Great-West Lifeco Inc. and "A Member of the Power Financial Corporation Group of Companies"®.
Great-West Financial® refers to products and services provided by Great-West Life & Annuity Insurance Company (GWL&A), Corporate Headquarters: Greenwood Village, CO, its subsidiaries and affiliates. Recordkeeping information and rankings reflect all recordkeeping customers of GWL&A subsidiary FASCore, LLC: those of institutional partners, third-party administrator clients and Great-West Financial. The trademarks, logos, and registered marks used are owned by GWL&A. "A Member of the Power Financial Corporation Group of Companies" is the registered mark of Power Corporation of Canada.