JP Morgan Chase 2009 Annual Report Download - page 83

JPMorgan Chase & Co./2009 Annual Report
81
Assets under supervision
2009 compared with 2008
Assets under supervision were $1.7 trillion, an increase of $205
billion, or 14%, from the prior year. Assets under management
were $1.2 trillion, an increase of $116 billion, or 10%, from the
prior year. The increases were due to the effect of higher market
valuations and inflows in fixed income and equity products offset
partially by outflows in cash products. Custody, brokerage, admini-
stration and deposit balances were $452 billion, up by $89 billion,
due to the effect of higher market levels on custody and brokerage
balances, and brokerage inflows in the Private Bank. The Firm also
has a 42% interest in American Century Companies, Inc., whose
AUM totaled $86 billion and $70 billion at December 31, 2009 and
2008, respectively, which are excluded from the AUM above.
2008 compared with 2007
Assets under supervision were $1.5 trillion, a decrease of $76
billion, or 5%, from the prior year. Assets under management were
$1.1 trillion, down $60 billion, or 5%, from the prior year. The
decrease was due to the effect of lower market valuations 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
balances 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.
Assets under supervision(a)
As of or for the year
ended December 31, (in billions) 2009 2008 2007
Assets by asset class
Liquidity $ 591 $ 613 $ 400
Fixed income 226 180 200
Equities & multi-asset 339 240 472
Alternatives 93 100 121
Total assets under management 1,249 1,133 1,193
Custody/brokerage/administration/
deposits 452 363 379
Total assets under supervision $ 1,701 $ 1,496 $ 1,572
Assets by client segment
Institutional $ 709 $ 681 $ 632
Private Bank(b) 187 181 183
Retail 270 194 300
Private Wealth Management(b) 69 71 78
Bear Stearns Private Client Ser-
vices(c) 14 6 —
Total assets under management $ 1,249 $ 1,133 $ 1,193
Institutional $ 710 $ 682 $ 633
Private Bank(b) 452 378 403
Retail 355 262 394
Private Wealth Management(b) 129 124 142
Bear Stearns Private Client Services(c)
55 50 —
Total assets under supervision $ 1,701 $ 1,496 $ 1,572
Assets by geographic region
As of or for the year
ended December 31, (in billions) 2009 2008
2007
U.S./Canada $ 837 $ 798
$ 760
International 412 335 433
Total assets under management $ 1,249 $ 1,133
$ 1,193
U.S./Canada $ 1,182 $ 1,084 $ 1,032
International 519 412 540
Total assets under supervision $ 1,701 $ 1,496
$ 1,572
Mutual fund assets by asset
class
Liquidity $ 539 $ 553 $ 339
Fixed income 67 41
46
Equities 143 92
218
Alternatives 9 7 6
Total mutual fund assets $ 758 $ 693
$ 609
Assets under management
rollforward
Beginning balance, January 1 $ 1,133 $ 1,193 $ 1,013
Net asset flows:
Liquidity (23) 210
78
Fixed income 34 (12) 9
Equities, multi-asset and
alternative 17 (47)
28
Market/performance/other impacts(d) 88 (211) 65
Ending balance, December 31 $ 1,249 $ 1,133
$ 1,193
Assets under supervision
rollforward
Beginning balance, January 1 $ 1,496 $ 1,572 $ 1,347
Net asset flows 50 181
143
Market/performance/other impacts(d) 155 (257) 82
Ending balance, December 31 $ 1,701 $ 1,496
$ 1,572
(a) Excludes assets under management of American Century Companies, Inc., in
which the Firm had a 42%, 43% and 44% ownership at December 31,
2009, 2008 and 2007, 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) Bear Stearns Private Client Services was renamed to JPMorgan Securities at
the beginning of 2010.
(d) 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.