J.P. Morgan betting big on asset management
Like other large banks, J.P. Morgan is cutting headcount. The bank hopes to trim its staff by as much as 19,000 by the end of the next year. But that doesn’t mean the firm isn’t hiring in pockets. J.P. Morgan has quietly been adding to its thriving asset management team over the last year.
Mary Callahan Erdoes, chief executive of the bank’s asset management business, told Bloomberg that the unit has added nearly 1,400 new employees during the 12 months ending in June. The business added just 450 people in 2012, so most of the growth is very recent. The group has grown by 8% over the last year, and for good reason. J.P. Morgan Asset Management has seen a 14% uptick in profit since the financial crisis. The larger bank has seen a nearly 40% dip during the same time frame.
With incoming regulations slowing activity in other areas, asset management has been a key growth sector for bulge bracket banks and smaller boutiques. Roughly 46% of asset managers have increased their headcount over the last year, with 48% expecting to do even more hiring in the next 12 months, according to a recent KPMG study. Miraculously, asset management headcount has broken pre-crisis levels in London. The hiring numbers are nearly as impressive in the U.S.
Pay is also on the rise. On a pay-per-head basis, most large publicly-listed asset managers increased pay during 2012, according to our analysis. Top performers are seeing multiple offers and impressive packages. More middling performers haven’t seen much of an increase in pay, however.
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Buzz Around the Office
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List of the Day: Recruiter Love
Developing a good relationship with your recruiter can go a long way in helping you find work. Here are some tips for getting them on your side.
- Understand that they work for the hiring firm, not you.
- Share feedback with them.
- Don’t harass them incessantly.