JP Morgan Chase 2010 Annual Report Download - page 88

Management’s discussion and analysis
JPMorgan Chase & Co./2010 Annual Report
88
Assets under supervision
2010 compared with 2009
Assets under supervision were $1.8 trillion at December 31, 2010,
an increase of $139 billion, or 8%, from the prior year. Assets
under management were $1.3 trillion, an increase of $49 billion, or
4%, due to the effect of higher market levels and net inflows in
long-term products, largely offset by net outflows in liquidity
products. Custody, brokerage, administration and deposit balances
were $542 billion, up by $90 billion, or 20%, due to custody and
brokerage inflows and the effect of higher market levels. The Firm
also has a 41% interest in American Century Companies, Inc.,
whose AUM totaled $103 billion and $86 billion at December 31,
2010 and 2009, respectively; these are excluded from the AUM
above.
2009 compared with 2008
Assets under supervision were $1.7 trillion at December 31, 2009,
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, administration 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 Private
Banking. The Firm also had a 42% interest in American Century
Companies, Inc. at December 31, 2009, whose AUM totaled $86
billion and $70 billion at December 31, 2009 and 2008,
respectively; these are excluded from the AUM above.
Assets under supervision
(a)
As of or for the year ended
December 31, (in billions) 2010 2009 2008
Assets by asset class
Liquidity
$
497
$ 591 $ 613
Fixed income
289
226 180
Equities and multi-asset
404
339 240
Alternatives
108
93 100
Total assets under ma
n
agement
1,298
1,249 1,133
Cu
s
tody/brokerage/administration/
deposits 542 452 363
Total assets under superv
i
sion
$
1,840
$ 1,701 $ 1,496
Assets by client segment
Private Banking
(b)
$ 284 $ 270 $ 258
Institutional
686
709 681
Retail
32
8
270 194
Total assets under ma
n
agement
$
1,298
$ 1,249 $ 1,133
Private Banking
(b)
$ 731 $ 636 $ 552
Institutional
687
710 682
Retail
422
355 262
Total assets under superv
i
sion
$
1,840
$ 1,701 $ 1,496
Assets by geographic r
e
gion
December 31, (in billions)
20
10
2009 200
8
U.S./Canada
$
862
$ 837 $
798
International
436
412
335
Total assets under manag
e
ment
$
1,298
$ 1,249 $
1,133
U.S./Canada
$
1,271
$ 1,182 $
1,084
International
569
519
412
Total assets under superv
i
sion
$
1,840
$ 1,701 $
1,496
Mutual fund assets by
asset class
Liquidity
$
446
$ 539 $
553
Fixed income
92
67
41
Equities and multi-asset
169
143
92
Alternatives
7
9
7
Total mutual fund assets
$
714
$ 758 $
693
Assets under management
rollforward
Year ended December 31,
(in billions) 2010 2009
2008
Beginning balance, January 1
$
1,249
$ 1,133 $ 1,
193
Net asset flows:
Liquidity
(89)
(23)
210
Fixed income
50
34
(12
)
Equities, multi
-
asset and
alternatives 19 17
(47
)
Market/performance/other impacts
(
c
)
69 88
(211
)
Ending balance, D
e
cember 31
$
1,298
$ 1,249 $
1,133
Assets under superv
i
sion
rollforward
Beginning balance, January 1
$
1,701
$ 1,496 $
1,572
Net asset flows
28
50
181
Market/performance/other impacts
(
c
)
111 155
(257
)
Ending balance, D
e
cember 31
$
1,840
$ 1,701 $
1,496
(a) Excludes assets under management of American Century Companies, Inc., in
which the Firm had a 41%, 42% and 43% ownership at December 31, 2010,
2009 and 2008, respectively.
(b) Private Banking is a combination of the previously disclosed client segments:
Private Bank, Private Wealth Management and JPMorgan Securities.
(c) Includes $15 billion for assets under management and $68 billion for assets
under supervision, which were acquired in the Bear Stearns merger in the
second quarter of 2008.