JP Morgan Chase 2008 Annual Report Download - page 74

Management’s discussion and analysis
72 JPMorgan Chase & Co./ 2008 Annual Report
Assets under supervision
2008 compared with 2007
Assets under supervision (“AUS”) were $1.5 trillion, a decrease of
$76 billion, or 5%, from the prior year. Assets under management
(“AUM”) were $1.1 trillion, down $60 billion, or 5%, from the prior
year. The decrease was due to the effect of lower markets and non-
liquidity outflows, predominantly offset by liquidity product inflows
across all segments and the addition of Bear Stearns assets under
management. Custody, brokerage, administration and deposit bal-
ances were $363 billion, down $16 billion due to the effect of lower
markets on brokerage and custody balances, offset by the addition of
Bear Stearns Brokerage. The Firm also has a 43% interest in
American Century Companies, Inc., whose AUM totaled $70 billion
and $102 billion at December 31, 2008 and 2007, respectively,
which are excluded from the AUM above.
2007 compared with 2006
AUS were $1.6 trillion, an increase of $225 billion, or 17%, from the
prior year. AUM were $1.2 trillion, up 18%, or $180 billion, from the
prior year. The increase in AUM was the result of net asset inflows
into liquidity and alternative products and market appreciation across
all segments. Custody, brokerage, administration and deposit bal-
ances were $379 billion, up $45 billion. The Firm also has a 44%
interest in American Century Companies, Inc., whose AUM totaled
$102 billion and $103 billion at December 31, 2007 and 2006,
respectively, which are excluded from the AUM above.
Assets under supervision(a)
As of or for the year
ended December 31, (in billions) 2008 2007 2006
Assets by asset class
Liquidity $ 613 $ 400 $ 311
Fixed income 180 200 175
Equities & balanced 240 472 427
Alternatives 100 121 100
Total assets under
management 1,133 1,193 1,013
Custody/brokerage/
administration/deposits 363 379 334
Total assets under supervision $ 1,496 $ 1,572 $1,347
Assets by client segment
Institutional $ 681 $ 632 $ 538
Private Bank(b) 181 183 142
Retail 194 300 259
Private Wealth Management(b) 71 78 74
Bear Stearns Brokerage 6——
Total assets under management $ 1,133 $ 1,193 $1,013
Institutional $ 682 $ 633 $ 539
Private Bank(b) 378 403 328
Retail 262 394 343
Private Wealth Management(b) 124 142 137
Bear Stearns Brokerage 50 ——
Total assets under supervision $ 1,496 $ 1,572 $1,347
Assets by geographic region
As of or for the year
ended December 31, (in billions) 2008 2007 2006
U.S./Canada $ 798 $ 760 $ 630
International 335 433 383
Total assets under management $ 1,133 $ 1,193 $1,013
U.S./Canada $ 1,084 $ 1,032 $ 889
International 412 540 458
Total assets under supervision $1,496 $ 1,572 $1,347
Mutual fund assets by asset class
Liquidity $ 553 $ 339 $ 255
Fixed income 41 46 46
Equities 99 224 206
Total mutual fund assets $ 693 $ 609 $ 507
Assets under management
rollforward
Beginning balance, January 1 $ 1,193 $ 1,013 $ 847
Net asset flows:
Liquidity 210 78 44
Fixed income (12) 911
Equities, balanced and alternative (47) 28 34
Market/performance/other impacts(c) (211) 65 77
Ending balance, December 31 $ 1,133 $ 1,193 $1,013
Assets under supervision
rollforward
Beginning balance, January 1 $ 1,572 $ 1,347 $1,149
Net asset flows 181 143 102
Market/performance/other impacts(c) (257) 82 96
Ending balance, December 31 $ 1,496 $ 1,572 $1,347
(a) Excludes assets under management of American Century Companies, Inc., in which
the Firm had a 43%, 44% and 43% ownership at December 31, 2008, 2007 and
2006, respectively.
(b) In 2008, certain clients were transferred from Private Bank to Private Wealth
Management. Prior periods have been revised to conform to this change.
(c) Includes $15 billion for assets under management and $68 billion for assets under
supervision from the Bear Stearns merger in the second quarter of 2008.
72 JPMorgan Chase & Co./ 2008 Annual ReportJPMorgan Chase & Co./ 2008 Annual Report72