Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Investor Day (February 2020)
27 slides from Jp Morgan Chase &'s investor day presentation, Feb 25, 2020
Slide 1: Asset & Wealth Management
ASSET & WEALTH MANAGEMENT February 25, 2020 FIRM OVERVIEW CORPORATE & INVESTMENT BANK CONSUMER & COMMUNITY BANKING ASSET & WEALTH MANAGEMENT COMMERCIAL BANKING
Slide 2: One of the world's leading Asset & Wealth Managers
One of the world’s leading Asset & Wealth Managers Long-term, fiduciary Strong long-term investment performance: 88% 10-year JPMAM LT MF AUM above peer median1 mindset Client-centric franchises for nearly 200 years Global scale Global presence: 1,000+ AM investment professionals and 6,500+ JPM
Slide 3: A decade of growth – AWM
A decade of growth A decade of growth – AWM Record Client assets (EOP, $T) Revenue ($B)1 Pretax income ($B) 10-yr 10-yr 10-yr 2009 2019 CAGR 2009 2019 CAGR 2009 2019 CAGR 3.2 14.3 3.7 7% 5% 5% AUS + AUM 2.4 7% 1.7 AUM 1.2 8.6 2.3 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Pretax margin R
Slide 4: A decade of growth: AM and WM business metrics
A decade of growth Record A decade of growth: AM and WM business metrics End of period, $B, unless noted Asset Management Wealth Management 2009-19 2009-19 2009 2019 Growth 2009 2019 Growth Robust Revenue1 $4.7 $7.3 1.5x Revenue $3.8 $7.1 1.8x Financials Pretax income2 $1.4 $1.9 1.4x Pretax
Slide 5: Mutual benefits from being part of JPMorgan Chase
A decade of growth Mutual benefits from being part of JPMorgan Chase Annual figures unless otherwise indicated JPMC Asset and Wealth Management 63mm U.S. households ~45% U.S. PB clients use branch Client Reach ~5K branches and expanding to reach ~95% U.S. population1 ~4,000 International UHN
Slide 6: AWM growth drivers for the next decade
Next decade AWM growth drivers for the next decade 1 2 3 4 5 Focusing Expanding Scaling Building Considering U.S. Wealth Management Global Private Bank Asset Management Alternatives M&A Expand branch footprint to Grow globally, leveraging Unmatched client reach and 50 years of innovation and
Slide 7: U.S. Wealth Management: Growing from a position of strength
Next decade 1 U.S. Wealth Management: Growing from a position of strength Significant growth opportunity for JPMC ~$50T ~$68T ~65% 200+ Market size opportunity1 across Intergenerational wealth transfer % of clients which would consider leaving a firm if Reported U.S. wealth management a highly-fragm
Slide 8: Global Private Bank: Consistently growing the business, while investing for the future
Next decade 2 Global Private Bank: Consistently growing the business, while investing for the future JPM PB strategically growing… Opportunity Advisor hiring Converted client referrals Net new clients Client asset flows ~1,300 Hundreds 11,000+ ~$200B ~9% Advisors hired of conversions Net New Clients
Slide 9: Global Private Bank: Continue to serve clients across their balance sheet
Next decade 2 Global Private Bank: Continue to serve clients across their balance sheet Record Investments Deposits Loans PB LT AUM plus Brokerage year-end balances ($B)1 PB year-end spot balance ($B)1 PB year-end spot balance ($B)1 Equity Multi-Asset & Alts Mortgages2 Fixed Income Brokerage Loans (
Slide 10: Asset Management: Strong investment performance provides opportunity to scale
Next decade 3 Asset Management: Strong investment performance provides opportunity to scale Performance Growth Opportunity 88% of 10-year JPMAM LT MF AUM above peer median1 Asset Management LT AUM ($T) Current share3 >74% 50-74% 25-49% 0-24% JPMAM CAGR Equity Active Industry CAGR2 9% U.S.: 94% 7% In
Slide 11: Asset Management: Complete cross-asset class income franchise
Next decade 3 Asset Management: Complete cross-asset class income franchise Equity Income Fund Fixed Income: Income Fund ETF: JPST MAS: Income Builder Fund Alts: Infrastructure Strategy #1 in 2019 Flows #2 in 2019 Flows #3 in 2019 Flows #3 in 2019 Flows $5 Billion Morningstar category rank1 Mornings
Slide 12: Alternatives: Harnessing 50 years of innovation to drive growth
Next decade 4 Alternatives: Harnessing 50 years of innovation to drive growth Diversified, growing platform Initiatives to drive future growth AWM Client Assets, $B1 Largest U.S. Core Real Estate open-end commingled fund6 248 WM 3rd Party AUS 221 Continue to scale flagships – launch new capabili
Slide 13: M&A: A potential strategy to supplement our organic growth
Next decade 5 M&A: A potential strategy to supplement our organic growth Industry dynamics favorable for M&A Our approach to M&A Structural industry change Organic growth preferred method to grow our franchises (e.g., fees, passive, costs) Key success factors M&A will always prioritize our cli
Slide 14: Successfully navigating industry headwinds
Position of strength Successfully navigating industry headwinds % of 10-year JPMAM LT MF AUM above peer median1 Multi-Asset Solutions Industry headwinds Maintaining strong, Total JPMAM Equity Fixed Income & Alternatives long-term investment performance 88% 91% 81% 90% Fee pressure AUM of Top 5 New E
Slide 15: Power of a broad, diversified platform
Position of strength Power of a broad, diversified platform 5Y Total Client Asset Flows ($B) Publically-traded peers only 194 JPMC Total Client #1 BLK2 $1,272 Asset Flows ($B)1 123 127 (LT AUM + Liquidity + AUS + 100 97 #2 JPMC1 $509 CWM AUS + CPC Deposits) 89 82 71 28 36 #3 GS3 $479 Legend ≥$0 <$0
Slide 16: Continuing to invest in the business
Position of strength Continuing to invest in the business Front Office Technology Front office spend Technology spend (% of revenue) Continue to hire the best talent in the Tech spend to drive growth and industry – 500+ hires planned in 2020 Investment efficiency, manage risk ~$320mm AM resear
Slide 17: How we measure against our targets
Position of strength How we measure against our targets Previous Targets LT AUM Revenue Pretax income Pretax Flows growth growth margin ROE Medium-term targets (+/-) 4% 5% 10% 30% 25%+ 2017 – 2019 2 – 7% 2 – 8% 1 – 3% 26% 25 – 31% Results range1 Meeting target New Targets LT AUM Revenue Pr
Slide 18: Agenda
Agenda Page 1 Notes 17 JPMORGAN CHASE & Co,
Slide 19: Notes on slides 1-2
Notes on slides 1-2 Slide 1 – One of the world’s leading Asset & Wealth Managers 1. The “% 10-year JPMAM LT MF AUM above peer median” analysis: All quartile rankings, the assigned peer categories and the asset values used to derive this analysis are sourced from Lipper, Morningstar and Nomura based
Slide 20: Notes on slide 3 – A decade of growth: AM and WM business metrics
Notes on slide 3 – A decade of growth: AM and WM business metrics 1. Historical revenue revised as a result of the adoption of the new accounting guidance for revenue recognition, effective January 1, 2018 2. Does not include expense allocated to AWM Center in 2009 3. Represents the Nomura “star rat
Slide 21: Notes on slides 4-8
Notes on slides 4-8 Slide 4 – Mutual benefits from being part of JPMorgan Chase 1. 2019 U.S. population sourced from U.S. Census Bureau. Sum of population of states in which Chase currently has or will have a branch presence post-market expansion 2. Defined as You Invest Trade clients who digitally
Slide 22: Notes on slide 9 – Asset Management: Strong investment performance
Notes on slide 9 – Asset Management: Strong investment performance provides opportunity to scale 1. The “% 10-year JPMAM LT MF AUM above peer median” analysis: All quartile rankings, the assigned peer categories and the asset values used to derive this analysis are sourced from Lipper, Morningstar a
Slide 23: Notes on slide 10 – Complete cross-asset class income franchise
Notes on slide 10 – Asset Management: Complete cross-asset class income franchise 1. Source: Strategic Insight Simfund retrieved February 10, 2020, based on Large Value Morningstar fund category. Excludes Index and Fund of Funds 2. Source: Morningstar. 5Y return (net of fees), 5Y percentile rankings
Slide 24: Notes on slide 10 (continued)
Notes on slide 10 – Asset Management: Complete cross-asset class income franchise (continued) 18. Past performance is not indicative of future returns. Returns include the re-investment of income. Performance numbers represent a composite return of the combined fund investor vehicles in existence as
Slide 25: Notes on slide 11 – Alternatives
Notes on slide 11 – Alternatives: Harnessing 50 years of innovation to drive growth 1. Includes fee and non-fee earning assets. Product classifications are J.P. Morgan’s own and are based on internal investment management structures; Strategic Insight Simfund categorization also used to classify Liq
Slide 26: Notes on slide 13 – Successfully navigating industry headwinds
Notes on slide 13 – Successfully navigating industry headwinds 1. The “% 10-year JPMAM LT MF AUM above peer median” analysis: All quartile rankings, the assigned peer categories and the asset values used to derive this analysis are sourced from Lipper, Morningstar and Nomura based on country of domi
Slide 27: Notes on slides 14-16
Notes on slides 14-16 Slide 14 – Power of a broad, diversified platform 1. Includes Asset & Wealth Management, Chase Wealth Management investments, and new-to-firm Chase Private Client Deposits from 2012-2019; prior to 2012, flows data for Chase Wealth Management investments and new-to-firm Chase Pr