JP Morgan Chase

Task 1

Prepare a prospective client profile and pitch to your manager why they would be a good fit for JPMorgan

Building a strategic client approach

Here is the background information on your task

Using the client profiles below and any supplementary research you wish to use, identify which client JPMorgan should pursue.

Present your business case on why this would be attractive to JPMorgan and what services JPMorgan 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. 
  • 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

Here is your task

Select one of the 3 fictional sample client profiles above, and identify 1-3 areas where JPMorgan can add value to the client.

Use resources online and on the JPMorgan 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.

Resources to help you with the task

This is not an exhaustive list but here are examples of additional resources that can be used: 

  • Reuters
  • Bloomberg
  • Financial Times
  • Wall Street Journal
  • The Economist
  • Zero Hedge
  • Seeking Alpha