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Money Management

J.P. Morgan AUM up 5% in quarter; Jamie Dimon talks leadership diversity

J.P. Morgan Asset Management (JPM) on Friday reported $2.096 trillion in assets under management as of March 31, up 5% from three months earlier and 4% higher than a year earlier.

Year-over-year AUM growth was predominantly driven by net inflows into liquidity and long-term products, Marianne Lake, chief financial officer of parent J.P. Morgan Chase, said during the company's earnings call.

Institutional AUM totaled $943 billion as of March 31, up 2% from Dec. 31 and up 1% from March 31, 2018, according to J.P. Morgan Chase's quarterly earnings statement. Retail AUM was $556 billion as of March 31 and private banking client assets totaled $597 billion.

The first quarter saw net inflows of $5 billion and performance gains of $104 billion, compared to net inflows of $18 billion and performance losses of $108 billion in the previous quarter. JPMAM experienced net outflows of $5 billion in the year-earlier quarter.

Fixed-income strategies saw $19 billion in net inflows during the first quarter, while other asset classes across the business experienced net outflows. Equity strategies saw $6 billion in net outflows, liquidity strategies had $5 billion in net ouflows, and multiasset and alternatives strategies accounted for $3 billion in net outflows during the quarter.

JPMAM managed $698 billion in multiasset and alternatives strategies as of March 31, up 6% from three months earlier and up 2% from a year earlier. The firm reported $495 billion in fixed-income strategies, up 7% from Dec. 31 and up 6% from March 31, 2018. Liquidity strategies totaled $476 billion, down 1% from three months earlier but up 10% year-over-year. Equity strategies totaled $427 billion as of March 31, up 11% from Dec. 31 but down 1% from a year earlier.

Assets under custody at parent J.P. Morgan Chase were $24.716 trillion as of March 31, up 6% from three months earlier and up 3% from a year earlier.

Overall, J.P. Morgan Chase had net revenue of $29.1 billion in the first quarter, up 12% from the fourth quarter and up 4% from the year-earlier quarter. Net income for the company was $9.179 billion, up 30% from the previous quarter and up 5% from the year-earlier quarter.

The company reported its earnings just days after its CEO Jamie Dimon testified before the House Financial Services Committee on Wednesday, alongside the chief executives of six other megabanks in the U.S.: Goldman Sachs, Morgan Stanley (MS), Bank of America, Citigroup, State Street and Bank of New York Mellon (BK).

The CEOs were grilled on a number of issues, including executive compensation and the lack of women and minorities in leadership roles.

During the Friday earnings call, Mr. Dimon spoke on whether his successor might be a woman — a topic that came up during the Congressional hearing.

"We have exceptional women, and my successor may very well be a woman, but it may not. It really depends on the circumstances at the time, and it might be different one year from now vs. five years from now, so that's all that was."

During the House committee meeting, Mr. Dimon and Morgan Stanley CEO James Gorman were the only two bank executives who did not raise their hand when asked to indicate whether their bank was likely to have a woman or person of color as their successor within the next decade.

"There are several people on the operating committee who can succeed me," Mr. Dimon added during the earnings call.