Chillin' out till it needs to be funded
JP Morgan’s latest strength for its PR department to downsell to big media has been the planned supremacy in fund management, talked about since 2010. It emerged with $17 bln inflows in 2011 right behind Vanguard and even PIMCo tht survived a year long scare . Money market and Cash list up to a massive $456 bln for the firm according to bloomberg, It is ont he 10k too and their $278 bln spread in EMEA though less impressive is still not small fry anymore
The firm had ibid for Scudder earlier in the year from DWS (Deutsche bank) but it seems to consider costs very seriously much like its other favorite China where it relies on local government funds for investment advisory and PE business. JP Morgan’s Assets under managemen tin the Funds business are $1.2 tln currently
US Banks have been growing their 17000 strong armies of investment Advisors at both BankAm (Merrill, US Trust) and JP Morgan. RIAs have emerged a s a dominant “asset class” for US fund investors, growing to $1.3 tln in 3 years and up 30% last year. the fund management business is a naturalhedge fror the volatility of client assets in trading even as Sovereign Funds change their direct investment strategy to allocating portions of funds a t a time to competing fund managers, though the business accrues to hedge Fund managers/PE managers currently by its international nature. consequent regulation in that business is likely to allow more buy side management into all the wholesale investible funds as well.
Targeting the Ultra High net worth individuals, a game at which JP Morgan Securities Ltd is succeeding has driven Citi, merrill and Morgan Stanley to sell parts of the Broking/retail fund businesses to pro fund managers like Blackrock and Invesco.
However Asset management units at the big Four we track fall behind the Investment Banking / Fee businesses and even retail banking across the last few quarters staying around $1 bln in revenues/Op income.