J.P. Morgan Asset and Wealth Management

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Recent performance

Asset and Wealth management division’s performance in key areas[4]

2006 2016 2017
Mutual funds with a 4/5 star rating 119 220 235
Ranking of long-term client asset flows NA #2 #2
Active AUM market share 1.80% 2.50% 2.40%
North America Private Bank (Euromoney) #1 #1 #1
Client assets ($T) 1.3 2.5 2.8
Client assets market share 3% 4% 4%
Average loans ($B) 26.5 112.9 123.5
# of Wealth Management client advisors 1,506 2,504 2,605

In recent years the asset and wealth management division has performed strongly, consistently improving in key areas such as client assets and average loans. One of the key reasons behind this success is the strong performance of the investments they provide. In 2017 86% of their mutual fund assets under management, had outperformed the median of their peers in the previous 10-year period. This included 87% for equity, 81% for fixed income and 90% for multi-asset solutions and alternatives[5]. However, the successful trends in key areas of the division were not continued in 2018’s financial results. In the fourth quarter of 2018 its net income decreased by 8%, and its client’s assets fell by 2%[6]. JP Morgan has blamed this recent poor performance on the wider market downturn that occurred at the end of 2018. The slump in valuations negatively affected many areas of the division, for example it resulted a $150 million markdown on its private equity holdings[7].

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Comparison to competitors

JP Morgan’s Asset and Wealth Management Division compared to key competitors[10]

Pretax income ($B) Client assets ($T) Client advisors (#)
JP Morgan 5.5 Blackrock 6.3 Bank of America 20K
Blackrock 5.3 UBS 3.5 Morgan Stanley 16K
Bank of America 5 JP Morgan 3.1 Wells Fargo 15K
Morgan Stanley 4.8 Morgan Stanley 2.9 UBS 11K
Wells Fargo 4.3 Bank of America 2.6 JP Morgan 6K
UBS 4.2 Wells Fargo 2.4 Blackrock N/A

JP Morgan’s asset management division competes both with the asset management arms of other investment banks, such as UBS and Bank of America, and against firms that are solely dedicated to asset management, such as BlackRock. Despite not having the largest amount of client assets or advisors, JP Morgan is more successful in producing pre-tax income from their asset and wealth management division than its rivals are. This is partially due to it being more productive than its rivals, something that it has improved markedly in recently years with average revenue per client advisor growing by more than 50% from 2012 to 2017[11].