J.P. Morgan AUM up 22% vs. last year, flat with Q2

J.P. Morgan Chase & Co.’s asset and wealth management division reported assets under management of $3.19 trillion as of Sept. 30, flat compared to the end of the second quarter, but 21.8% higher year-over- year.

The company attributed the year-over-year increase to “continued net inflows and higher market levels,” in a release issued on Oct. 13.

Referring to ongoing geopolitical matters, Jamie Dimon, chairman and CEO, commented in the release: “The war in Ukraine compounded by last week’s attacks on Israel may have far-reaching impacts on energy and food markets, global trade, and geopolitical relationships. This may be the most dangerous time the world has seen in decades.”

J.P. Morgan also said it posted long-term net inflows of $60 billion in the third quarter.

By asset type, liquidity products saw net inflows of $40 billion in the third quarter, followed by net inflows of $16 billion and $2 billion, respectively, for equities and alternative products, according to a supplement accompanying the earnings release. Fixed income and multiasset products each saw net inflows of $1 billion in the third quarter.

In addition, “market performance and other impacts” contributed to a $62 billion decrease in AUM in the latest quarter, according to the earnings supplement.

Looking at the third quarter of 2022, the firm witnessed long-term net outflows of $24 billion.

By asset type, liquidity products and multiasset products suffered net outflows of $36 billion and $5 billion, respectively, in that quarter. Fixed income, equities and alternative products saw net inflows of $9 billion, $6 billion and $2 billion, respectively.

In addition, “market performance and other impacts” contributed to a $103 billion fall in AUM in the year-ago third quarter.

With respect to earnings, the asset and wealth management unit recorded net income of $1.42 billion in the third quarter of 2023, up 16.2% from the year-ago quarter, and up 15.6% from the second quarter of 2023.

Net revenue at the unit totaled $5 billion in the second quarter, up 10.3% from the year-ago quarter, and up 1.3% from the second quarter.

The higher year-over-year revenues were driven by “higher management fees on strong net inflows and higher average market levels, offset by lower performance fees and lower net interest income,” the release stated.