J.P. Morgan's money-management arm makes for a fraction of its profits – and is a potential growth engine thanks to copious investing, Claude Kurzo, who runs the unit in Switzerland, told finews.tv.
The U.S. bank's asset management arm is dwarfed by its far weightier consumer bank as well as capital markets activities, but enjoys top-level management attention for a growth bid, Claude Kurzo, according to country chief for the business in Switzerland.
«We're considered a growth business and therefore receive a lot of investment, which helps to grow the business,» Kurzo told finews.tv. The wider asset management unit contributed $1.24 billion of JP. Morgan’s overall $14.3 billion net profit in the first quarter.
Top-ten players can stomach price pressure, coupled with the ability to massively invest – and have seen market share gains as a result, Kurzo said. Asset managers with a focus on one channel, geography, or investment capability have also won share, he noted.
«The challenge is more in the middle: broad in capability set but not top-ten,» Kurzo said. J.P. Morgan is the world's fourth-largest asset manager by funds, and ranks third in Switzerland.
The bank is seeking to bulk up through cooperations such as with a major Turkish asset manager, which will take J.P. Morgan's products in a «white label» agreement. Despite a flurry of asset management deals, Kurzo indicated that the U.S. bank would focus on such cooperations, including in Switzerland where he sees considerable potential to tie up.
«There's a lot going on with acquisitions in the market and industry. Obviously we're monitoring that very carefully and are part of that industry,» Kurzo said.
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