JP Morgan Chase is disbanding its stand-alone principal investment management group's hedge fund business and private equity division and shifting staff from this unit to sit within existing businesses, according to a person familiar with the reorganisation reported by Reuters.

The main goal is to better align principal investing with JP Morgan's traditional investment banking business lines, the person said.

JP Morgan's commodities group, for example, already has a principal investment management team attached to it; more businesses will be set up this way after the reorganisation.

The bank's Asia-based private equity team will be incorporated into its global emerging markets and credit trading unit, according to the source.

JP Morgan declined to comment to the news service.