JP Morgan Chase reported record assets under management for its asset and wealth management businesses in 2017, riding the back of the stock market rally.
Assets under management for this division, which includes JP Morgan Asset Management, broker-dealer JP Morgan Securities and JP Morgan Private Bank, among other businesses, increased 15% from $1.7 trillion in 2016 to hit a record $2 trillion for 2017.
Revenue of $3.4 billion for the division was up 9% for the fourth quarter of 2017 and 7% for the year to almost $13 billion, boosted by higher management fees.
In its fourth quarter and end of year results, the firm reported that net client flows amounted to $93 billion in 2017 with positive flows across fixed income, multi-asset and alternative asset classes.
Multi-asset and alternatives was the category with the highest AUM, hitting $673 billion in 2017, with flows of $42 billion over the year.
Equity assets saw net outflows of $11 billion in 2017. However, due to market appreciation, equity assets increased 22% to $428 billion.
Overall the asset management division gained a net $189 billion in 2017 from market performance.