Earlier this year, JPMorgan was named the best wealth manager in the US in Euromoney’s private banking and wealth management survey for 2022. It was also named as best for the ultra-high net-worth segment – classified as individuals or families with $30 million to $250 million in assets.
The US firm also bagged a host of regional awards in the survey. It was named best for investment management, environmental, social and governance (ESG)/sustainable investing and serving business owners in North America. It is also preeminent in philanthropic and next-generation advisory in the US – factors that dovetail nicely, as millennials and Generation Z are more likely to donate to charity than any previous generation.
JPMorgan adapted well to the challenges presented by Covid and now boasts 56 pure-play private banking offices in the US, having opened 12 new offices in recent years, including San Diego, Baltimore, Pittsburgh, Las Vegas and Salt Lake City.
Its asset and wealth management division posted a 58.32% rise in net income in 2021 to $4.37 billion, with net revenues up 19.1% to $16.96 billion and its return on equity rising five percentage points to 33%. In the first quarter of 2022, the division posted net revenues of $4.32 billion, up 5.8% year on year, with total client assets hitting a record $1.3 trillion.
The US private bank, led by chief executive David Frame, is now in the midst of the most ambitious expansion in its history, with the goal of doubling its roster of US-based advisers to 3,000 from 1,500. It has hired more than 500 advisers since the start of 2021.
The bank has also been busy in the M&A market. In June 2021, JPMorgan Asset Management bought Oregon-based Campbell Global. A leader in responsible forest management and timberland investment with $5.3 billion in assets under management, Campbell gives JPMorgan an active role in global carbon markets as it develops and strengthens its presence in the environmental, social and governance space. The asset manager is now part of JPMorgan’s $168 billion global alternatives business, which helps institutional investors tap into fast-growing private markets.
The US private bank is now in the midst of the most ambitious expansion in its history, with the goal of doubling its roster of US-based advisers
Two other noteworthy deals were completed in June 2021. The first was the acquisition of OpenInvest, a San Francisco-based fintech backed by venture capital firm Andreessen Horowitz and startup accelerator Y Combinator.
The other saw JPMorgan Asset Management buy Kraft Analytics Group (KAG), a data specialist that focuses on the sports and entertainment industry. KAG is a particularly compelling deal. Extremely wealthy individuals demand elite-level wealth management advice. That might mean putting money to use buying all or part of a sporting club, be it in the big-four US sports of basketball, baseball, gridiron or ice hockey or in the English or French football leagues. This is where KAG comes in.
It is another sign of how JPMorgan sets itself apart from its peers and why it is North America’s best bank for wealth management.
