JPMorgan to tailor products for distributors

ICE CAPS, JPMorgan’s newest investment offering, promises distributors more say in how the product is constructed.

JPMorgan Securities in London has revealed plans to roll out a series of white label investment products aimed at European distributors. The firm’s first step has been to launch a protected fixed income fund, which can be tailored to suit a particular bank or investment adviser and branded with the appropriate name. JPMorgan’s private banking arm has been the first institution to adopt the product, known as ICE CAPS (investment-grade credit-linked enhanced-yield capital protected securities). Stephen Stonberg, managing director, JPMorgan Securities, revealed: “Credit is just one example of what we have planned. We can do this in almost any asset class – equities, equity-driven strategies, commodities such as oil, gas and gold.” He said JPMorgan was also planning to offer white-labelled hybrid products comprising equities and bonds. Distributors will be able to customise these products. JPMorgan Private Bank, for example, was able to choose the level of protection offered by ICE CAPS of 95 per cent. It also decided the maturity of the investment and had a say in its holdings. ICE CAPS offers exposure to an investment-grade fixed income portfolio of 100 corporate US and European bonds.