Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Investor Day (February 2017)
23 slides from Jp Morgan Chase &'s investor day presentation, Feb 28, 2017
Slide 1: Asset & Wealth Management
AS S E T & W E ALT H M AN AG E M E N T Mary Erdoes, Chief Executive Officer Asset & Wealth Management February 28, 2017
Slide 2: Asset & Wealth Management: Uniquely positioned in the industry
Asset & Wealth Management: Uniquely positioned in the industry Individuals Institutions Retail Mass Affluent Affluent High Net Worth Ultra High Net Worth Family Offices Intermediaries Pensions Insurance Sovereigns Trust: Nearly 200 years of being a fiduciary focuses us on long-term thinking Client
Slide 3: Continued strong financial performance in a challenging environment
Continued strong financial performance in a challenging environment Record AWM key metrics and records Industry challenges CAGR $2.5 Alpha $2.3 $2.4 $2.4 +5% Client assets (EOP, $T) $2.1 $1.9 Flows $12.0 $12.1 $12.0 +5% $11.4 Fees Revenue ($B) $10.0 $9.6 AWM priorities $3.5 $3.5 +7% $3.3 Investment
Slide 4: Despite near-term challenges, leading long-term performance
Despite near-term challenges, leading long-term performance % of 2016 JPMAM long-term mutual fund AUM over peer median1 (net of fees) 1-year 3-year 5-year 10-year >75% Total Legend 50-74% JPMAM 54% 72% 79% 83% 25-49% <25% Equity 59% 77% 85% 84% Fixed Income 46% 64% 61% 77% ASSET & WEALTH MANAGEMENT
Slide 5: Diversified solutions across JPMC client segments and regions drive positive flows
Diversified solutions across JPMC client segments and regions drive positive flows < $(100mm) Flat > $100mm LT AUM1 + ST AUM + AUS + Credit = Total Client Region Positions2 Fixed Multi- Equity Alts Liquidity Brokerage Custody Deposits Credit Income Asset US JPMC EMEA 2016 WM Asia LatAm $23B $62B $85
Slide 6: #2 in total flows over the past years (large public peers)
#2 in total flows over the past 5 years (large public peers) Ranking of LT client asset flows for key large publically traded peers ($B) 2012-2016 2012-2016 2012 2013 2014 2015 2016 Average Average Cumulative Peer 1 Peer 11 Peer 11 Peer 11 Peer 11 Peer 111 $126 $628 JPMC$112 Peer 2 JPMC$113 Peer 6 J
Slide 7: Assets, revenue, and pretax income records
Assets, revenue, and pretax income records 2016 Client assets ($T) 2016 Revenue ($B) 2016 Pretax income ($B) YoY growth YoY growth BLK1 $5.1 BAC $17.7 (2.1)% JPMC3 AWM CWM $4.9 8.0% UBS2 $2.9 MS $17.5 0.3% BLK $4.5 (3.1)% JPMC3,4 AWM CWM $2.7 UBS $17.2 (4.3)% BAC $4.4 8.9% MS2 $2.5 WFC $15.9 1.1% WF
Slide 8: Adapting and innovating are keys to success
Adapting and innovating are keys to success Industry headlines1 Our view Both active & passive are key building Active blocks for stronger portfolios “versus” Passive Clients want advice, service, and solutions … not just products Fees should align with long-term value expectations Fee Reduc
Slide 9: Serving clients across wealth spectrum, leading with advice and thought leadership
Serving clients across wealth spectrum, leading with advice and thought leadership CCB AWM Chase WM JPM WM ~50% U.S. households bank with Chase ~50% world’s wealthiest1 bank with JPM 5,258 branches, covering 23 states 80 offices, covering 109 countries <10% invest with us <30% USPB clien
Slide 10: Continuing to advise WM clients on both sides of their balance sheet
Continuing to advise WM clients on both sides of their balance sheet Growing deposits JPMC WM1 year-end balance ($B) $290 +19% CAGR $136 Non-op $20B Other $36B $52 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Average balance of PB deposit clients ($mm): 1.2 1.4 1.4 1.5 1.7 1.7 Grow
Slide 11: JPMC WM revenue mostly recurring, and leading peers in growth
JPMC WM revenue mostly recurring, and leading peers in growth Leading revenue growth Revenue composition Revenue growth vs. peers JPMC WM1 ($B) 2011-16 CAGR Annual revenue growth 2012 2013 2014 2015 2016 18.4% 10.7% $9.5 JPMC 11.0% 10.8% 10.7% 8.5% CAGR WM1 5.5% 9.2% 5.3% Peer 1 3.9% 2.0% 1.4% 1.7%
Slide 12: JPMAM Equity: Global, research-driven teams delivering strong performance
JPMAM Equity: Global, research-driven teams delivering strong performance Legacy of global, research-driven approach Strong performance across entire platform1 Investment professional % 5Y JPMAM mutual fund AUM over peer median locations >75% 50-74% 25-49% <25% Emerging Markets U.S. Global European
Slide 13: JPMAM Fixed Income strategies: Strong growth across broad platform
JPMAM Fixed Income strategies: Strong growth across broad platform AUM growth across platform Performance % 5Y JPMAM mutual fund AUM over peer median3 JPMAM: >75% 50-74% 25-49% <25% 9% CAGR1 Global Solutions U.S. / Global High Emerging Unconstrained/ Unconstrained/Specialty Broad Yield Markets Munic
Slide 14: Growth engines: Alternatives
Growth engines: Alternatives Diversified and growing platform Strong investment performance Total client assets ($B) JPMAM 5Y return vs. benchmark 20% 17.3% $213 JPMAM Benchmark AWM: 15% 6% CAGR 11.4% Industry: 10% 12.7% 11.2% 4% CAGR1 4.6% 5% 3.6% 0.1% 3.5% $157 0% Strategic Multi-Strategy U.S. Cor
Slide 15: Growth engines: Solutions
Growth engines: Solutions Growth powered by underlying investment capabilities AUM AUM Ranking3 5Y CAGR4 JPMAM Solutions AUM JPMAM: 16% CAGR #1 Peer 4% Insurance Industry: 6% CAGR2 #5 Peer 5% #8 JPMAM 16% JPMAM: 2011 2016 25% CAGR Industry: AUM Growth of $1mm6 12% CAGR1 $mm $1.8 JPMAM SmartRetiremen
Slide 16: Where we invest
Where we invest Digital Wealth Management Agile & The Cloud +14% Front office spend ($) Enables client engagement choice Frequent, rapid release cycles Integrates mobile Adaptable, next-generation and online architecture investing / banking J.P. Morgan’s private cloud Increases advisor p
Slide 17: AWM poised for continued growth, leveraging the full spectrum of JPMC
AWM poised for continued growth, leveraging the full spectrum of JPMC Client focus Global diversification Serving entire wealth spectrum from individual retail Hard to replicate breadth and depth of offering investors to multi-billionaires and largest institutions Global mindset, footprint, an
Slide 18: Notes appendix
Notes appendix Page 1 1. The “% of 10-year JPMAM long-term mutual fund AUM outperform peers” analysis represents the proportion of assets in mutual funds that are ranked in the top 2 quartiles of their respective peer category on a 10-year basis as of December 31, 2016. All quartile rankings, the as
Slide 19: Notes appendix (continued)
Notes appendix Page 5 (continued) 3. Long-term AUM and brokerage 4. Long-term AUM, brokerage, and deposit 5. Long-term AUM, fee-generating brokerage, and deposits in fee-generating brokerage accounts 6. Total AUM, Brokerage, and deposit 7. Includes client asset flows attributable to private banking
Slide 20: Notes appendix
Notes appendix Page 10 Source: Company filings Note: Peer set includes comparable publicly disclosed businesses (MS, WFC, UBS, BAC, CS) 1. Pro-forma, reflecting WM (as reported) plus CWM Investments and CPC Deposits 2. Recurring revenue includes discretionary/managed, credit, deposit, fiduciary, cus
Slide 21: Notes appendix (continued)
Notes appendix Page 11 (continued) 7. Source: Morningstar. 1-Year Excess Return for “C (acc) EUR” share class over MSCI Europe Net Return EUR index. Other share classes may have higher expenses, which would lower returns. 8. Value of $1,000,000 invested on January 31, 2006 into JPMorgan Europe Dynam
Slide 22: Notes appendix (continued)
Notes appendix Page 12 (continued) 6. Source: Morningstar. 3-Year Excess Return for Select Share class over Bloomberg Barclays Multiverse Total Return Index. Other share classes may have higher expenses, which would lower returns. 7. Percentage of monthly periods with 3Y positive excess returns in S
Slide 23: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of JPMorgan Chase & Co.’s management and are subject to significant risks an