J.P. Morgan/American Century Joint Retirement Service Effort Completed
KANSAS CITY and NEW YORK, June 3, 2003 -- American Century Investments and JPMorgan announced June 1 they have transferred to JPMorgan exclusive ownership of J.P. Morgan/American Century Retirement Plan Services, a strategic business partnership between the two firms. The new entity is named JPMorgan Retirement Plan Services.
The business unit provides bundled defined contribution services and investment options to 170 corporate clients, representing 793,754 retirement plan participants. Total plan assets are $45.2 billion, with $7.5 billion managed by American Century and $5.6 billion managed by JPMorgan Fleming. Under the terms of the deal American Century remains an asset manager for current plans and its investment management strategies will continue to be offered to new RPS clients. Also, the 700 employees of RPS – primarily based in Kansas City, Denver and New York – will remain with the business unit.
Specific terms of the transaction were not disclosed. The transfer of ownership does not change JPMorgan's 45 percent equity stake in American Century.
According to American Century President and Chief Executive Officer William M. Lyons, the transfer of ownership supports American Century's long-term strategy to concentrate on its investment management capabilities. "The Retirement Plan Services business has grown quickly, and this change will provide a better structure in which to continue that growth," Lyons said. "American Century's role in the joint enterprise will be narrowed to investment management, our core business. We will continue to obtain new assets to manage through the Retirement Plan Services business, and RPS will, in effect, become one of our largest and most important clients."
"This acquisition represents an important step to realizing JPMorgan's long-term vision of becoming the leading investment services provider of choice as individuals move throughout their career," said Jes Staley, head of JPMorgan's Investment Management and Private Banking businesses.
JPMorgan Retirement Plan Services will continue to offer clients the quality service they have become accustomed to, according to its chief executive officer, Tom Kmak. "We're confident that the change gives Retirement Plan Services a solid foundation to continue enhancing and developing services for plan sponsors and participants," Kmak said. "As before, they will be receiving best-in-class services from a provider they know and trust."
RPS Chairman Jeff Garrity added, "By offering participants the full spectrum of investment services – from mutual funds to brokerage to full-service administration – we can now provide the most comprehensive 'hire-to-retire' package in the industry."
Formed in January 1998 when JPMorgan purchased its 45 percent equity stake in American Century, Retirement Plan Services provides defined contribution plan services to some of the country's largest and most successful companies. In 2001, Retirement Plan Services entered into an alliance with other best-in-class providers, including Towers Perrin for defined benefit administration and health and welfare services, Financial Engines for participant advice, TBG Financial for non-qualified retirement plan administration and Mellon Investor Services for stock-based compensation services.
About JPMorgan Fleming
As a part of J.P. Morgan Chase & Co., JPMorgan Fleming is a global asset management leader providing world-class investment solutions to corporations, governments, institutions, endowments, foundations and individuals. With over $500 billion in global assets under management, JPMorgan Fleming offers global reach, local presence and product leadership in every asset class for defined benefit and defined contribution pension plans, segregated accounts, proprietary and sub-advised funds and asset management for high-net-worth individuals.
About American Century
American Century is a leading investment manager with more than 40 years of experience helping investors achieve their financial goals. Serving investment professionals, institutions, corporations and nearly two million individual investors, American Century offers a broad array of products across a variety of investment disciplines.
Based in Kansas City, Mo., the company manages approximately $75 billion in assets through mutual funds, managed accounts, commingled trusts and subadvisory accounts. James E. Stowers Jr. founded the company in 1958 and serves as chairman. His son, James E. Stowers III, is co-chairman and William M. Lyons is president and chief executive officer. For the past four years, American Century, which employs approximately 2,600 people, has been selected as one of FORTUNE Magazine's 100 Best Companies to Work for in America. For more information about the company, visit www.americancentury.com.
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