George Gatch is boosting J.P. Morgan's >[profile] mutual fund sales and marketing expenditures by ten percent this year. Bloomberg revealed that tidbit and more in a long profile of the growth of the banking giant's mutual fund business.

The piece details J.P. Morgan's emphasis on active management, its increased distribution via both captive Chase branch brokers and RIAs, its research and more about Gatch's strategy.

The wire service reports that, according to Strategic Insight, J.P. Morgan just jumped into the top ten U.S. stock and bond fund managers by assets as the only bank. According to the report, JPMorgan's net sales growth last year as a percentage of assets was higher than any other mutual fund firm with at least $50 billion. Its $17.9 billion in net inflows (excluding money market funds) surpassed all, save Vanguard and Pimco.

“Their performance as an asset gatherer has been phenomenal,” Geoff Bobroff, a mutual fund consultant in East Greenwich, Rhode Island, said in a telephone interview with the wire service. “Their fund performance isn’t one to gather a lot of attention, but they’re solid from a business standpoint.”

“We want to remain in the top five in net flows every year for the foreseeable future,” Gatch told Bloomberg. “If we do that, we’re well-positioned as the markets normalize.” 

Edited by: HFD


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