J.P. Morgan Asset Management had assets under management of $1.347 trillion as of June 30, down 2.5% from the prior quarter but up 0.4% from the year before, according to parent company J.P. Morgan Chase's second-quarter earnings report issued Friday.
The $35 billion decline in AUM for the quarter reflected net outflows of $11 billion and market-related declines of $24 billion.
Outflows from liquidity products such as money market funds for the period came to $25 billion, more than offsetting net inflows of $14 billion for long-term fixed income, equity and alternatives.
While those long-term inflows were down from $17 billion for the prior quarter and $19 billion for the year-earlier quarter, higher margin equity, multiasset and alternatives strategies accounted for the bulk of the firm's latest inflows, at $9 billion, with fixed income accounting for the remaining $5 billion.
The mix for the prior quarter was $11 billion in fixed income and $6 billion in equity, multiasset and alternatives, while the year-earlier mix was $12 billion and $7 billion, respectively.
By asset class, liquidity strategies accounted for 35% of overall AUM, or $466 billion, down 5.2% from the prior quarter; equity and multiasset strategies came to 30% of the total, or $401 billion, down 3.8%; fixed income stood at 26%, or $359 billion, up 1.1%; and alternatives accounted for 9%, or $121 billion, up 2.5%.
Private banking accounted for $297 billion in AUM, or just more than one-fifth of the latest quarter's total, and $1.341 billion, or 57%, of overall revenues of $2.364 billion.
Institutional clients accounted for 52%, of total assets under management, but only 23% of revenues; retail clients accounted for 26% of the AUM and 20% of overall revenues.
Net income came to $391 million for the second quarter, up 1.3% from the prior quarter but down 11% from the year-earlier quarter, reflecting, in part, lower net revenue.
Revenues of $2.364 billion were little changed from the prior quarter but down 6.8% from the year before, with the company's earnings release citing lower performance fees, lower market levels and lower valuations of seed capital investments as contributing factors.
Separately, J.P. Morgan Chase's earnings release pegged at $4.4 billion the value of a high-profile trading loss by its chief investment office overseeing the company's liabilities, losses initially reported in Mayin the $2 billion range.