Here is the background information on your task
Using the client profiles below and any supplementary research you wish to use, identify which client J.P. Morgan should pursue.
Present your business case on why this would be attractive to J.P. Morgan and what services J.P. Morgan can offer to the client.
Sample clients:
Blue Capital
Client Type: Asset Manager
AUM: $11bn
Background:
Asset manager based in New York with a primary focus on direct investments in global liquid markets including public equity and credit, across all industries.
Investors vary from high net worth individuals to institutional clients.
YTD performance at +21% and looking to further outperform the benchmark index
CEO:
Previous: Giorgia Davila
Current: John Smith
Strategy:
Global Credit: Alpha capture across their credit portfolios. Focused on income-generation through short-dated investment grade and high yield credit instruments, through a hold-to-maturity style portfolio
Global Equites: Generating alpha on a total return basis in the Equities market. Seeks to invest in outstanding companies where they have a strong fundamental understanding of the business, while developing a deep understanding of the macroeconomic environment to manage investment risk.
Focus Markets:
Global mandate covering both Developed and Emerging markets
News:
Blue Capital secured an additional $5bn investment from new investors
CEO Giorgia Davila has recently announced retirement after 20 years in the role. The position is being filled internally by John Smith, a well-respected mentee of the previous CEO.
John Smith is open to new business partnerships and expanding further in emerging markets.
Centum
Client Type: Hedge Fund
AUM: $1.9bn
Background:
Headquartered in Shanghai and founded in 2015, China.
YTD performance +39%. Investors are mainly institutional investors.
CEO: Anton Duran
Strategy:
Quantitative: Systematic trend following in FX, Interest Rates and Equity Index futures. A quant team build their model, and trades are executed mostly electronically
YYY Discretional: Three branches with portfolio managers running their own discretional book: Fundamental Equity, Macro, and Index Arbitrage
Focus Markets:
China, Hong Kong, Japan
Exploring possibilities of expansion to new markets
News:
Recently hired 2 more senior sell-side traders to become portfolio managers
Recently started raising additional funds
XYZ Pension Managers
Client Type: Pension Fund
AUM: $20bn
Background:
Pension fund of public servants in a developed European country
Manages pensions and health benefits for millions of existing government employees, retirees.
YTD performance at +0.5%.
CEO: Krystal Singh
Strategy:
Fixed Income: 80% Index tracking fund following a global Investment grade debt index in 24 local currency markets.
Equities: 20% allocation to passive tracking of a major European equity Index
Focus Markets:
Developed Europe
News:
New policy introduced to increase government employee contributions to retirement fund
Investors showing disapproval in regards to recent lacklustre performance when compared to global equity index trackers
Select one of the 3 fictional sample client profiles above, and identify 1-3 areas where J.P. Morgan can add value to the client.
Use resources online and on the J.P. Morgan website (see example below) to find products and services which would be suitable for a given client.
Your summary should be presented in a clear and concise email to your manager.
We recommend you spend 45-60 minutes on this task and that your drafted email is approximately 250-280 words.