This article details the big move JPMorgan has made to be a major global competitor in the fund market. They have taken advantage of a huge name brand recognition to seize an opportunity that many of their competitors have shied away from for the most part. Their growth indicates that they likely will continue to move up the list with their assets and funds under management consistently increasing. Many banks are unwilling to be this risky however, I think this focus on fund management will pay off in the form of cold hard cash.
http://www.businessweek.com/articles/2012-03-15/jpmorgan-cracks-the-mutual-fund-top-10
2 comments:
I commend JPMorgan for this break through. It seems this is a true testament to the success of taking risks, and jumping on opportunities that most other companies, or in this case banks, would not consider. It also seems that this gives us a little hope that businesses are seeing more success in this economic downturn and hopefully we will begin to see more successes like this one in the future, especially with the tightening of bank restrictions and the many bank failures seen in the past.
This article gives a great look at finding a market nitch in a very profitable market. JP Morgan may have found a segment that although is very profitable, is still not a great threat to the firms higher on the list. "As of Feb. 29, its assets had grown to almost $152 billion. Vanguard is No. 1 with $1.42 trillion." there are two significant contributors to their success, first is the good being provided and second is their marketing. JP Morgan’s is offering-house sales force and offering hedge fund-like products that have become more popular among investors. They accomplish these sales not by targeting individual investors but targeting registered investing advisers. Hosting events and seminars for the RIA's are ways of persuading them to suggest investing through JP Morgan to their individual clients. This along with high brand establishment among commercial banking, equals more sales.
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