JP Morgan Chase 2010 Annual Report Download - page 48

46
ment, Highbridge and Gávea fran-
chises, we count among us many of
the world’s top portfolio managers,
research analysts, traders and client
advisors. They invest in a full range
of stock and bond strategies, as well
as oer a comprehensive range of
investments from leading hedge
fund, private equity and real estate
managers. With this broader plat-
form, we are better able to serve
an increasingly sophisticated and
engaged client base.
2010: A Record Year
Despite sweeping regulatory changes
to our industry during the past year,
little has changed in the way we
conduct our investment businesses.
In 2010, we continued our tradition
of client and shareholder focus and
delivered record revenue of nearly
$9 billion, up from almost $8 billion
in 2009. Net income rose 20% to $1.7
billion, our highest annual earnings
in three years, with return on equity
of 26% and a healthy margin of 31%.
These results were produced while
continuing to invest in our people,
systems and risk management;
improving our operations; and leading
the industry in developing best-in-class
legal and compliance practices.
When I joined J.P. Morgan Asset
Management in 1996, it was a much
dierent business. We managed $179
billion of assets, generating about $1
billion in revenue for the firm. Of our
few thousand clients, most were very
large institutions and ultra-high-net-
worth individuals that were invested
primarily in stocks and bonds.
Fifteen years later, by virtually any
measure, Asset Management has
become one of the leading global
money managers and private banks,
serving individuals, institutions,
pension funds, endowments, founda-
tions, central banks and sovereign
entities globally.
Today, we have $1.3 trillion in assets
under management (AUM) and $1.8
trillion in assets under supervision.
Our revenue has grown to nearly $9
billion. We now deliver our products
and services locally through more
than 200 oces around the world
to over 7,000 institutions and more
than 5 million individuals.
Through our J.P. Morgan Private
Bank, Private Wealth Management,
J.P. Morgan Securities, J.P. Morgan
Asset Management, JF Asset Manage-
After the 2008 financial crisis, we
saw tremendous cash inflows into
our firm as part of a “flight to quality”
from many places in the world.
As risk appetite began to rebound,
clients – many of them new to our
firm – diversified into solutions
across our platform, driving our long-
term net new AUM flows to a record
$69 billion and the highest levels
of total AUM ($1.3 trillion) in our
history. We continue to attract new
assets in many of these areas because
of our strong long-term investment
performance, with 80% of our funds
ranking in the top two quartiles in the
industry over a five-year period.(a)
While our primary goal is to be the
most respected asset manager – not
the biggest – our business cannot be
successful without continuous invest-
ment in talented new professionals.
In Private Banking, we grew our
client advisor team by 15% globally
and 32% outside the United States. In
our Global Institutional and Sover-
eigns businesses, we strengthened our
senior sales management by putting
top talent in key leadership positions.
Asset Management
“ Our success ultimately is
measured by our ability
to generate superior
risk-adjusted returns
for our clients over the
long term and across
business cycles.”
  
 
 