J.P. Morgan Asset Management said that it has completed its reorganization of its Retirement Plan Services to fully align its sales force with retirement plan advisors.
As a result of the reorganization, the sales and services teams for retirement plans, up to $500 million in size, are now organized around advisors geographically. Previously, these teams had been organized around market segments.
Now, under the new arrangement, sales people follow and serve the advisor within their assigned territories, regardless of size.
According to David Musto, chief executive officer of J.P. Morgan Retirement Plan Services, his company has been aggressively growing its retirement business—doubling its sales force to 16 sales people over the past 18 months. Moreover, J.P. Morgan has made a number of strategic hires across the organization to enhance its business model in the mid- and large-company markets.
“We believe this new sales structure will help us better serve the retirement plan advisor community and our mutual clients,” Musto said. “This is part of a broader effort to build out thought leadership and resources for advisors, who we think are instrumental in working with plan sponsors to improve individual retirement outcomes.”
The reorganization will make it easier for J.P. Morgan to promote new product ideas to advisors. For example, the company asked sponsors in November to rethink the design of their plan menus in an initiative called Core Menu Innovation, which advocated reform of 401(k) menus to simplify investment choices.
The reorganization also works in tandem with J.P. Morgan’s Defined Contribution Investment Solutions (DCIS) business, which develops new tools and investment systems for advisors. DCIS in the past launched the Target Date Company, an application that helps plan sponsors match their objectives and investment philosophy to the most appropriate date fund solutions.