JP Morgan Chase 2006 Annual Report Download - page 21

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19
MAJOR 2006 ACCOMPLISHMENTS
•Continued to deliver strong investment performance. Globally, 79% of our long-term mutual fund assets
were ranked in first- or second-quartile funds for the five years ended December 31, 2006.
•Continued significant growth in our European business. Ranked second for net sales of all retail long-
term mutual funds, with 2006 net sales of $19.7 billion(b).
•Achieved record performance with 20% revenue growth and 16% earnings growth.
•Net assets under management inflows were at a record level of $89 billion.
•Experienced record growth of net new clients in the Private Bank.
•Grew alternative assets under management including hedge funds, real estate, private equity and
currency, by 35%, to $100 billion. Continued to experience strong investor interest in Highbridge funds
with 97% growth in assets under management during 2006.
•Acquired CCA Strategies, an employee benefits and compensation consulting firm that will extend our
retirement services capabilities to better respond to the needs of our clients.
With assets under supervision of
$1.3 trillion, Asset Management is
a global leader in investment and
wealth management. Our clients
include institutions, retail investors
and high-net-worth individuals
in every major market throughout
the world.
We offer global investment man-
agement 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 and banking
services to high-net-worth clients,
and retirement services for corpora-
tions and individuals. The majority
of our client assets are in actively
managed portfolios.
2007 AND BEYOND
•Deliver strong investment performance through rigorous review of investment strategies and diversifi-
cation of investment processes, and by attracting and retaining the best investment talent in the world.
•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 401(k) business and IRA rollover retail channels, at both the corporate and participant levels,
as we leverage 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.
2006 HIGHLIGHTS
•Assets under management reached $1.0 trillion, with a total of $1.3 trillion assets under
supervision.
•Largest global hedge fund manager with assets under management of $34 billion(a).
•JPMorgan Prime Money Market Fund became the first money market fund to reach $100 billion.
•Reached $100 billion in retirement assets.
•Became one of the largest Sino-foreign fund houses in China within two years of launching
a joint venture with Shanghai International Trust & Investment Corporation (SITICO).
(In millions, except ratios) 2006 2005
Total net revenue $6,787 $5,664
Net income 1,409 1,216
Return on equity 40% 51%
ASSET MANAGEMENT
(a)
Absolute Return
magazine, March 2007 issue,
data as of year-end 2006
(b) Source FERI