JP Morgan Chase 2015 Annual Report Download - page 113

JPMorgan Chase & Co./2015 Annual Report 103
AM’s lines of business consist of the following:
Global Investment Management provides comprehensive global
investment services, including asset management, pension analytics,
asset-liability management and active risk-budgeting strategies.
Global Wealth Management offers investment advice and wealth
management, including investment management, capital markets and
risk management, tax and estate planning, banking, lending and
specialty-wealth advisory services.
AM’s client segments consist of the following:
Private Banking clients include high- and ultra-high-net-worth
individuals, families, money managers, business owners and small
corporations worldwide.
Institutional clients include both corporate and public institutions,
endowments, foundations, nonprofit organizations and governments
worldwide.
Retail clients include financial intermediaries and individual investors.
J.P. Morgan Asset Management has two high-level
measures of its overall fund performance.
• Percentage of mutual fund assets under management in funds
rated 4- or 5-star: Mutual fund rating services rank funds based on
their risk-adjusted performance over various periods. A 5-star rating
is the best rating and represents the top 10% of industry-wide ranked
funds. A 4-star rating represents the next 22.5% of industry-wide
ranked funds. A 3-star rating represents the next 35% of industry-
wide ranked funds. A 2-star rating represents the next 22.5% of
industry-wide ranked funds. A 1-star rating is the worst rating and
represents the bottom 10% of industry-wide ranked funds. The
“overall Morningstar rating” is derived from a weighted average of the
performance associated with a fund’s three-, five- and ten-year (if
applicable) Morningstar Rating metrics. For U.S. domiciled funds,
separate star ratings are given at the individual share class level. The
Nomura “star rating” is based on three-year risk-adjusted
performance only. Funds with fewer than three years of history are
not rated and hence excluded from this analysis. All ratings, the
assigned peer categories and the asset values used to derive this
analysis are sourced from these fund rating providers mentioned in
footnote (a). The data providers re-denominate the asset values into
U.S. dollars. This % of AUM is based on star ratings at the share class
level for U.S. domiciled funds, and at a “primary share class” level to
represent the star rating of all other funds except for Japan where
Nomura provides ratings at the fund level. The “primary share class”,
as defined by Morningstar, denotes the share class recommended as
being the best proxy for the portfolio and in most cases will be the
most retail version (based upon annual management charge,
minimum investment, currency and other factors). The performance
data could have been different if all funds/accounts would have been
included. Past performance is not indicative of future results.
• Percentage of mutual fund assets under management in funds
ranked in the 1st or 2nd quartile (one, three and five years): All
quartile rankings, the assigned peer categories and the asset values
used to derive this analysis are sourced from the fund ranking
providers mentioned in footnote (b). Quartile rankings are done on
the net-of-fee absolute return of each fund. The data providers re-
denominate the asset values into U.S. dollars. This % of AUM is based
on fund performance and associated peer rankings at the share class
level for U.S. domiciled funds, at a “primary share class” level to
represent the quartile ranking of the U.K., Luxembourg and Hong Kong
funds and at the fund level for all other funds. The “primary share
class”, as defined by Morningstar, denotes the share class
recommended as being the best proxy for the portfolio and in most
cases will be the most retail version (based upon annual management
charge, minimum investment, currency and other factors). Where
peer group rankings given for a fund are in more than one “primary
share class” territory both rankings are included to reflect local
market competitiveness (applies to “Offshore Territories” and “HK SFC
Authorized” funds only). The performance data could have been
different if all funds/accounts would have been included. Past
performance is not indicative of future results.
Selected metrics
As of or for the year ended
December 31,
(in millions, except ranking
data and ratios) 2015 2014 2013
% of JPM mutual fund assets
rated as 4- or 5-star(a) 53% 52% 49%
% of JPM mutual fund assets
ranked in 1st or 2nd
quartile:(b)
1 year 62 72 68
3 years 78 72 68
5 years 80 76 69
Selected balance sheet data
(period-end)
Total assets $ 131,451 $ 128,701 $ 122,414
Loans(c) 111,007 104,279 95,445
Core loans 111,007 104,279 95,445
Deposits 146,766 155,247 146,183
Equity 9,000 9,000 9,000
Selected balance sheet data
(average)
Total assets $ 129,743 $ 126,440 $ 113,198
Loans 107,418 99,805 86,066
Core loans 107,418 99,805 86,066
Deposits 149,525 150,121 139,707
Equity 9,000 9,000 9,000
Credit data and quality
statistics
Net charge-offs $12$6$40
Nonaccrual loans 218 218 167
Allowance for credit losses:
Allowance for loan losses 266 271 278
Allowance for lending-
related commitments 555
Total allowance for credit
losses 271 276 283
Net charge-off rate 0.01% 0.01% 0.05%
Allowance for loan losses to
period-end loans 0.24 0.26 0.29
Allowance for loan losses to
nonaccrual loans 122 124 166
Nonaccrual loans to period-
end loans 0.20 0.21 0.17
(a) Represents the “overall star rating” derived from Morningstar for the U.S.,
the U.K., Luxembourg, Hong Kong and Taiwan domiciled funds; and Nomura
“star rating” for Japan domiciled funds. Includes only Global Investment
Management retail open-ended mutual funds that have a rating. Excludes
money market funds, Undiscovered Managers Fund, and Brazil and India
domiciled funds.
(b) Quartile ranking sourced from: Lipper for the U.S. and Taiwan domiciled
funds; Morningstar for the U.K., Luxembourg and Hong Kong domiciled
funds; Nomura for Japan domiciled funds and FundDoctor for South Korea
domiciled funds. Includes only Global Investment Management retail open-
ended mutual funds that are ranked by the aforementioned sources.
Excludes money market funds, Undiscovered Managers Fund, and Brazil
and India domiciled funds.
(c) Included $26.6 billion, $22.1 billion and $18.9 billion of prime mortgage
loans reported in the Consumer, excluding credit card, loan portfolio at
December 31, 2015, 2014 and 2013, respectively.