JPMAM assets dip 0.9% in quarter, but reports long-term inflows

J.P. Morgan Asset Management on Friday reported $2.016 trillion in assets under management as of March 31, down 0.9% from three months earlier but 9.5% higher than a year earlier.

Institutional AUM totaled $937 billion in the latest quarter, down 3% from the quarter ended Dec. 31 and up 5% from March 31, 2017, according to parent J.P. Morgan Chase's quarterly earnings statement. Retail AUM was $542 billion and private banking client assets totaled $537 billion.

The first quarter saw net outflows of $5 billion, vs. net inflows of $40 billion in the fourth quarter and $9 billion in the year-earlier quarter. By asset class, net inflows of $16 billion went to multiasset and alternatives and $5 billion to equities, while net outflows of $21 billion came from liquidity investments and $5 billion from fixed income.

JPMAM managed $685 billion in multiasset and alternatives strategies as of March 31, up 2% from the previous quarter and up 17% from a year earlier. The firm reported $467 billion in fixed income AUM, down 1% from the end of the previous quarter but up 8% from the end of the year-earlier quarter; $432 billion in liquidity strategies, down 6% from three months earlier and down 3% from 12 months earlier; and $432 billion in equities , up 1% from Dec. 31 and up 14% from the end of the first quarter 2017.

JPMAM's net revenue for the first quarter was $3.51 billion, down 4% from the previous quarter and up 7% from the quarter ended March 31, 2017. Net income was $770 million for the latest quarter, up 18% from $654 million in the fourth quarter and double the $385 million in the year-earlier quarter.

The gains in net income for the 12 months ended March 31 were tied to higher growth in management fees because of increased AUM, said Marianne Lake, J.P. Morgan Chase chief financial officer, in an earnings conference call Friday.

Assets under custody at the end of the first quarter at parent J.P. Morgan Chase were $24.026 trillion, up 2% from three months earlier and up 12% from a year earlier.

Overall, J.P. Morgan Chase had net revenue of $28.5 billion in the first quarter, up 11% from the previous quarter and a 10% increase from the first quarter 2017. Net income of $8.7 billion was up 106% from the fourth quarter and up 35% over the year-earlier quarter.

"2018 is off to a good start with our businesses performing well across the board, driving strong top-line growth and building on the momentum from last year," Jamie Dimon, J.P. Morgan Chase chairman and CEO, said in the earnings statement.