JP Morgan Chase 2005 Annual Report Download - page 21

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19
2005 highlights
Major 2005 accomplishments
• Achieved record earnings, %revenue
growth, %earnings growth and a %
improvement in pre-tax margin to %.
• Completed the largest U.S. mutual fund
merger in history.
• Surpassed $ billion in Private Client
Services assets under supervision.
• Reached the milestone of million
participants in our Retirement Plan
Services business.
• Became the largest seller of mutual
funds in Europe. Generated more than
$ billion of net flows, with $ billion
flowing into long-term funds and over
$billion into liquidity funds.
• Delivered strong investment perfor-
mance. Globally, %of our long-term
mutual fund assets were ranked in
first- or second-quartile funds for the
five years ended December ,.
Asset & Wealth Management provides
investment advice and management
for institutions and individuals. With
assets under supervision of $1.1 trillion,
we are one of the largest asset and
wealth managersin the world. Weserve
four distinct client groups through
three businesses: institutions through
JPMorgan Asset Management;
ultra-high-net-worth clients through
the Private Bank; high-net-worth clients
through Private Client Services; and
retail clients through JPMorgan Asset
Management. The majority of our
client assets arein actively managed
portfolios. Wehave global investment
expertise in equities, fixed income,
real estate, hedge funds, private equity
and liquidity, including both money-
market instruments and bank deposits.
We also provide trust and estate
services to ultra-high-net-worth and
high-net-worth clients, and retirement
services for corporations and individuals.
2006 and beyond
• Continue to deliver strong investment
performance through rigorous review
of investment strategies and diversifi-
cation of investment processes.
• Expand third-party distribution of our
investment management products and
services, capitalizing on industry
shifts toward open architecture and
outsourcing of asset management.
• Respond to increasing demand
for absolute-return investing by
expanding our offering of alternative
products globally and staying at the
forefront of that move.
• Grow our (k) and IRA rollover
retail channels through targeted
marketing at both the corporate and
participant levels and leveraging our
connectivity with the rest of the firm.
• Extend our Private Bank and
Private Client Services footprint,
gain efficiencies and expand Private
Client Services investment offerings.
• $1.1 trillion in total assets under supervision at year-end
• Grew assets under management by $56 billion to a total of $847 billion, including $32 billion of
net flows
• Created shared-services organization to leverage economies of scale between Private Client
Services and the Private Bank
• Sold BrownCo, a discount brokerage firm, for $1.6 billion
• Successfully completed first year of integration with Highbridge, with its assets under
management increasing by 8%
Asset &Wealth Management
All 2004 information is on a pro forma combined-
operating basis. See page 1 for details.
(In millions, except ratios) 2005 2004
Total net revenue $5,664 $4,901
Operating earnings 1,216 879
Return on common equity 51% 37%
Pre-tax operating margin 33% 28%
Pro forma