JP Morgan AM Focuses on Large Clients
J.P. Morgan Asset Management is increasingly focusing on larger clients, stepping up the bespoke services offered to the whales, while nudging smaller clients to choose from a menu of preselected products and services, Institutional Investor reported.
The asset-management giant’s strategy is in line with that of big banks broadly over the past few years, as capital constraints and headcount reductions have pushed bulge-bracket institutions to take care of their most profitable clients, and be okay with letting smaller clients leave.
Pension consolidation, more demanding investors, and fee pressure have pushed the firm to focus on winning the business of the biggest investors globally, Patrick Thomson, J.P. Morgan Asset Management’s head of international institutional clients told II.
“We are focusing our efforts on the larger clients,” Thomson said. “One of our strategic priorities is looking at top-tier clients.”
The consolidation trend is pressuring asset management fees, as economies of scale help pensions increase their purchasing power, II reported. J.P. Morgan Asset Management will now offer clients a pre-selection menu of products and services, while larger investors will benefit from bespoke services, according to Thomson.
“There are fewer smaller clients,” Thomson said. “We have observed a market consolidation and we are responding to that.”