J.P. Morgan assets under management soar to record in 2021

J.P. Morgan Chase & Co.'s asset and wealth management division reported assets under management of $3.11 trillion as of Dec. 31, the end of the company's fourth quarter 2021, up 3.9% from the end of the third quarter and 14.6% higher year-over-year.

The fourth-quarter AUM was a new record high for the firm, a J.P. Morgan Chase spokesman said.

The 12-month AUM increase was driven "by cumulative net inflows, as well as higher market levels," according to the company's earnings report released Friday.

By asset type, net inflows into equities in the latest quarter totaled $18 billion, while net inflows into multiasset products and alternatives amounted to $6 billion and $10 billion, respectively. Net inflows into fixed income were flat.In addition, "market performance and other impacts" contributed to net inflows of $63 billion for the quarter, while another $20 billion in net inflows was attributed to liquidity products, the report added.

Year-over-year, net inflows amounted to $36 billion for fixed income, $85 billion for equities, $17 billion for multiassets and $26 billion for alternatives. The net inflows contributed by "market performance and other impacts" totaled $165 billion year-over-year, while liquidity products contributed $68 billion in net inflows, according to the report.

The spokesman noted that year-over-year net inflows of $164 billion into long-term assets (combining fixed income, equities, multiassets and alternatives) also were a record for the company.

Also, the asset management unit recorded net income of $1.15 billion in the fourth quarter, a 4.1% decline from the third quarter but a 45.8% jump from the year-ago fourth quarter.

The year-over-year increase in net income was "predominantly driven by higher management fees and growth in deposits and loans, partially offset by deposit margin compression," J.P. Morgan said.

Net revenues in the AWM unit totaled $4.47 billion in the fourth quarter, a 4% increase from the third quarter and a 15.7% jump from the year-ago fourth quarter.

Non-interest expense in the AWM unit amounted to $3 billion in fourth quarter, up 8.5% over the third quarter and up 8.7% over fourth quarter 2020. The year-over-year increase was driven by "higher performance-related compensation and distribution fees, higher structural expense, as well as higher investments in the business, partially offset by lower legal expense compared to the prior year," J.P. Morgan said.

In a statement, Jamie Dimon, J.P. Morgan Chase chairman and CEO, said the AWM unit delivered "robust results" in the fourth quarter of 2021 "as we saw positive (quarter-over-quarter) inflows into long-term products (equity, multiassets, alternatives) of $34 billion across all channels and regions."