Behavioral Finance in JP Morgan

JP Morgan

Mayank Sanghai
 JP Morgan
• World’s largest provider of cash management services
• Offer clients the perspective of an industry thought leader, product
innovator and global financial solutions provider
• Everyday deliver payment, collection, liquidity and investment
management, trade finance, commercial card and information solutions to
corporations, financial services institutions, middle market companies,
small businesses, governments and municipalities worldwide
• On any given day, $3.2 trillion in U.S. dollar wire transfers pass through
systems on behalf of more than 50,000 clients
• With a presence in 39 countries operates most extensive correspondent
banking network
 Recent awards
• Best Cash Management Specialist, Financial Institutions, The Asset, 2008
• Best Cash Management Specialist, Liquidity Solution, The Asset, 2008
• Best Bank for Liquidity Management in North America, Global Finance, 2008
• Best Bank Award – United States, Global Finance, 2008
• Best Overall Bank for Payments and Collections in North America, Global
Finance, 2008
• J.P. Morgan Named One of "100 Great Supply Chain Partners" - Global
Logistics and Supply Chain Strategies, 2008
• Cash Management Provider of the Year (for Liquidity Management), ICFA
European Award, 2008
• Best Trade Services Provider - Trade & Forfaiting Review, 2008
• Best Liquidity Solution Provider, The Asset, 2007
• Best Regional Specialist, Financial Institutions - The Asset, 2007
• Best Supply Chain Finance Bank - Trade & Forfaiting Review, 2007
 Capabilities
• Payables and Receivables
• Commercial Card Solutions
• Liquidity and Investment Management
• E-Billing Services
• Global Clearing Services
• Euro Clearing
• Global Trade and Logistics Solutions
• Information Management
• E-Commerce Advisory Services
• Government Solutions
• Healthcare Solutions
• Treasury Outsourcing and Private Label Services
 JP Morgan
• Asset management
• Commercial banking
• Investment bank
• Private banking
• Securities services
• Treasury services
 Asset Management
• Leading asset manager for institutions, individuals and financial
intermediaries, worldwide
• Investment professionals provide strategies that span full spectrum of asset
classes including equity, fixed income, cash liquidity, currency, real estate,
infrastructure, hedge funds and private equity
• Insight  +  Process  =  Results
• Successful investing is driven by insight into opportunities, markets and
portfolio strategies
• Reputation has been built on a promise to put client interests ahead of their
own, to generate original insight and to translate that insight into results
• Today, advice, insight and intellectual capital drive a growing array of
innovative strategies powered by new ideas, sophisticated analytics and a
relentless focus on generating results for each client
BACK
 Commercial Banking
• Commercial Banking provides the complete product offering of JPMorgan
Chase, including lending, treasury services, investment banking and
investment management to corporations, municipalities, financial
institutions and not-for-profit entities
• Annual revenues generally ranging from $10 million to $2 billion.
• Chase is the number one commercial bank for middle market companies in
markets where they have a geographical presence
• Chase clients work with a dedicated client service professional (CSP) who
averages about 20 years service experience
• Bankers are deeply rooted in their communities, making decision locally,
with access to the comprehensive resources of their global bank
 Commercial Banking
•Online Solutions
• Asset-based Lending
•Credit Products
• Institutional Asset Management
•Securities Safekeeping
• Asset & Wealth Management
•Employee Stock Ownership Plans
• International Banking
• Capital Placements (ESOP)
•Subordinated Debt and Equity
• Investment Banking
•Equipment Leasing
• Chase Commercial Online
• Investments •Trade Services.

• Commercial Real Estate Banking •Foreign Exchange

•Treasury Services.

•Global and Regional Capabilities

•Worldwide Securities Services

•BACK
 Investment Bank

• One of the world's premier investment banks

• J.P. Morgan serves the needs of clients by offering a world-class platform
coupled with straightforward, intelligent advice
• Long-term success due to commitment of always putting clients' interests
first
• J.P. Morgan offers M&A advisory, capital markets, prime brokerage,
restructuring, risk and research platform of unrivaled strength
• Founded more than 200 years ago and have a proud history of "only first-
class business... in a first-class way"
BACK
 Private Banking

• Advisor to over 40% of the individuals on the Forbes Billionaires list* and the
Forbes 400 Wealthiest Americans
• Insights results of more than 160 years of experience helping individuals and
their families grow, manage and sustain their wealth, to ultimately leave a
lasting legacy
• JPMorgan's wealth management solutions are provided through the Private
Bank and Private Wealth Management
• Products and services, including fiduciary and custody products and services,
are offered through JPMorgan Chase Bank, N.A. and its affiliates.
• Securities are offered by J.P. Morgan Securities Inc.,
member FINRA, NYSE and SIPC. J.P. Morgan Securities Inc. is an affiliate of
JPMorgan Chase Bank, N.A.
• Investment products: Not FDIC insured • No bank guarantee • May lose value
BACK
 Worldwide Securities Services
• J.P. Morgan Worldwide Securities Service leading global provider with
more than $15 trillion in assets under custody
• J.P. Morgan provides innovative custody, fund accounting and
administration and securities services to the world's largest institutional
investors, alternative asset managers and debt and equity issuers
• J.P. Morgan WSS leverages its scale and capabilities in more than 90
markets to help clients optimize efficiency, mitigate risk and enhance
revenue through a broad range of investor services as well as securities
clearance, collateral management and alternative investment services
BACK
 Treasury Services

• J.P. Morgan offers reliable and innovative payments and

receivables services, liquidity and investment management,
and trade and commercial card services
• Presence in 39 countries, treasury employees in 40 U.S. states
• Supporting branch network in 17 states
• Clients range from small businesses to some of the world's
largest multinational corporations, governments, regional
banks and global financial institutions

BACK
Behavioural Finance

Swathi Velisetty
F66
Behavioral finance
Conventional Financial Theories
 Comparison

Conventional Behaviour
Anchoring
Mental Accounting
Confirmation and Hindsight
Bias
 Biases

Dr. Ranjan Sharma

F56
Gambler's Fallacy
Herd Behaviour
Overconfidence
Overreactions and Availability
Bias
Prospect Theory
JP Morgan : Financials

Atul Zade
F70
 Financial Summary of Main Segments
Asset & Wealth Management Focusing on
Behavioral Financing
Breakdown of Asset & Wealth
Management by Business
Breakdown of Asset & Wealth
Management by Asset Class

Total AUM in 2005 : $ 847 Billion

Other Approaches to equity investments are also
followed by portfolio managers besides
Behavioral Finance