J.P. Morgan Asset Management (JPM) on Tuesday reported $1.987 trillion in assets under management as of Dec. 31, down 4% from three months earlier and 2% lower than a year earlier.
Institutional AUM totaled $926 billion as of Dec. 31, down 2% from Sept. 30 and down 4% from Dec. 31, 2017, according to parent J.P. Morgan Chase's quarterly earnings statement. Retail AUM was $509 billion as of Dec. 31 and private banking client assets totaled $552 billion.
The fourth quarter saw net inflows of $18 billion and performance losses of $108 billion, compared to net inflows of $22 billion and performance gains of $27 billion, respectively, in the previous quarter. JPMAM experienced net inflows of $40 billion in the year-earlier quarter, and performance gains were $49 billion in that period.
Multiasset and alternatives strategies accounted for net outflows of $5 billion during the fourth quarter, while equity strategies saw $6 billion in net outflows during that period. Fixed-income and liquidity strategies accounted for $8 billion and $21 billion, respectively, in net inflows, during the three months ended Dec. 31.
JPMAM managed $659 billion in multiasset and alternatives strategies as of Dec. 31, down 7% from the three months earlier and down 2% from a year earlier. The firm reported $384 billion in equity strategies, down 15% from Sept. 30 and down 10% from Dec. 31, 2017. Fixed-income strategies totaled $464 billion, up 2% from three months earlier but down 2% year-over-year. Liquidity strategies totaled $480 billion as of Dec. 31, up 4% from Sept. 30 and up 5% from a year earlier.
Assets under custody at parent J.P. Morgan Chase were $23.217 trillion as of Dec. 31, down 5% from three months earlier and down 1% from a year earlier.
Overall, J.P. Morgan Chase had net revenue of $26.1 billion in the fourth quarter, down 4% from the third quarter but up 7% from the fourth quarter of 2017. Net income for the company was $7.066 billion, down 16% from the previous quarter and up 67% from the year-earlier quarter.
"2018 was another strong year for J.P. Morgan Chase, with the firm generating record revenue and net income, even without the impact of tax reform," said Jamie Dimon, chairman and CEO, in a news release about the earnings. "Each line of business grew revenue and net income for the year, while continuing to make significant investments in products, people and technology, demonstrating the power of the platform."
"Asset and wealth management delivered strong banking results and continued its string of annual net long-term inflows, even as volatility and lower market levels impacted fourth-quarter results," Mr. Dimon added.