J.P. Morgan Asset Management (JPM)'s assets under management reached $2 trillion as of Dec. 31, up 5% from three months earlier and up 15% from Dec. 31, 2016, said the earnings report from parent company J.P. Morgan Chase on Friday.
JPMAM experienced net inflows of $40 billion for the fourth quarter, compared to net inflows of $26 billion for the third quarter and net inflows of $14 billion for the fourth quarter of 2016.
Multiasset and alternatives, fixed-income, and liquidity strategies accounted for $17 billion, $12 billion and $10 billion, respectively, in net inflows. Equities strategies had $1 billion in net inflows. Market performance resulted in a $49 billion increase in AUM during the three months ended Dec. 31.
Of the overall AUM, $968 billion was institutional, $540 billion in retail and $526 billion from private banking clients. Institutional AUM rose 5% from three months earlier and 11% from a year earlier.
Broken out by asset class, JPMAM had $673 billion in multiasset and alternatives strategies as of Dec. 31, up 5% from Sept. 30 and up 19% from a year earlier; $474 billion in fixed income, up 3% from the end of the previous quarter and up 13% from the end of the year-earlier quarter; $459 billion in liquidity strategies, up 4% from three months earlier and up 5% from 12 months earlier; and $428 billion in equities, up 6% from Sept. 30 and up 22% from Dec. 31, 2016.
"The enactment of tax reform in the fourth quarter is a significant positive outcome for the country," said Jamie Dimon, chairman and CEO of J.P. Morgan Chase, in the earnings report. "U.S. companies will be more competitive globally, which will ultimately benefit all Americans."
Mr. Dimon added: "The cumulative effect of retained and reinvested capital in the U.S. will help grow the economy, ultimately growing jobs and wages. We have always invested, even in difficult times, in our employees, customers and communities, and as a result of the tax plan we will be increasing and accelerating some of these investments."
JPMAM's net revenue was $3.37 billion, up 4% from the previous quarter and up 9% from the fourth quarter of 2016. Net income was $654 million for the fourth quarter, down 3% from the third quarter but up 12% from the year-earlier quarter.
Assets under custody for the third quarter were $23.47 trillion, up 3% from three months earlier and up 14% from a year earlier.