BlackRock shifts $1 trillion in assets to JPMorgan

BlackRock Inc. yanked custody services from State Street Corp. on more than $1 trillion in client assets as the asset manager seeks to cut costs by putting pressure on vendors.

The move of assets to JPMorgan Chase is part of BlackRock’s strategy to exact lower fees, according to a person familiar with the matter.

BlackRock, the world’s largest asset manager, found a partner in JPMorgan, which has been growing its custody business and now manages $20.5 trillion in assets. The bank has invested in automation technology that helps it offer services more cheaply. The bank is expected to make tens of millions of dollars in annual fees from the deal.