The move of assets to JPMorgan Chase & Co. is part of BlackRock’s strategy to exact lower fees, according to a person familiar with the matter. The bank said the deal was one of the largest shifts of custody assets ever. BlackRock, the world’s largest asset manager, found a partner in JPMorgan, which has been growing its custody business and now services about $20.5 trillion in assets. The average fee rate for custody assets is 1.81 basis points, meaning that the loss to JPMorgan could sap about 3% of State Street’s earnings, he wrote. Bank of New York Mellon Corp., the largest custody bank, reported $29.9 trillion in assets under custody and administration.

Source: Mint January 26, 2017 02:53 UTC