JPMorgan is to wind down FundsHub, its outsourced dealing, settlement and reconciliation service for the European fund distribution industry.
The fund supermarket operator has told its three European clients - German insurance group Gothaer, the UK's Charcol Online, and Old Mutual's fund multi-manager Selestia - that it will continue to operate the service while they find new suppliers.
FundsHub was formed in April 2000 as a $20 million joint venture between Investia and JP Morgan to provide outsourced fund supermarket solutions in Europe. The US investment bank bought out Investia in 2002 and injected new capital into the business in an effort to take it through to profitability.
However, with no new clients lined up and following a fruitless six-month search for a third-party partner to share the cost burden, the bank says it has decided to proceed with an orderly wind-down of the service.