A sea change may be occurring in the $12 trillion asset management space, as JPMorgan Chase in February became the first bank to crack the top 10 list of the largest U.S. stock and bond funds.
According to research firm Strategic Insight, JPMorgan’s lineup, led by global funds chief George Gatch, posted higher net sales growth as a percentage of assets than any other firm with at least $50 billion. Gatch is scheduled to speak at this year’s Morningstar investment Conference in June, signaling a broader acceptance of banks in the mutual fund space.
Bloomberg reports that while rival banks sought to sell asset management units following the financial crisis, “JPMorgan escaped relatively unscathed, allowing it to spend on the unit and lift long-term fund assets by 160% since 2008. The largest U.S. bank by assets succeeded in part by courting financial advisers to complement its in-house sales force and by offering hedge-fund-like products that have become more popular as investors flee traditional stock funds.”
“We want to remain in the top five in net flows every year for the foreseeable future,” Gatch told the news service. “If we do that, we’re well-positioned as the markets normalize.”