JPMorgan Takes In $60 Billion From Rich Latin American Clients

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JPMorgan Takes In $60 Billion From Rich Latin American Clients

(Bloomberg) — JPMorgan Chase & Co.’s private bank raked in $60 billion from Latin American clients over the past four years as more customers decided to put their money to work abroad, with the majority coming from wealthy ******** investors.

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Strong US capital markets also helped, as the fortunes the bank manages for clients from the region jumped to about $220 billion from $180 billion in April 2023, according to Edinardo Figueiredo, chief executive officer for Latin America and the global families group at JPMorgan Private Bank. ******** clients account for $85 billion of the total.

“We grew a lot, and we expect this momentum to continue,” Figueiredo said. But he added that this year the expansion will probably be more “tepid” because of slower economic growth in the region and a lack of “liquidity events” — deals that free up money to manage, such the selling of stakes from controlling shareholders in an initial public offering.

JPMorgan, which sold all of its on-shore private-banking business in Latin America in recent years, now focuses on clients with more than $5 million to invest outside the region. It has booking centers in Miami, New York, Houston and Geneva. The Miami office has grown more than the others and is now the largest, representing 56% of the revenue from the region, Figueiredo said.

With 550 employees, the business plans to hire 40 more in 2025.

“Last year, we had the ******** business booming, with customers from there using the US more and more as a diversification platform,” said Alexandre Zanuto, head of investment and advice for Brazil at JPMorgan Private Bank.

On the other hand, wealth managed for Brazilians, “who traditionally tend to think more locally,” increased much less as some cut their dollar investments to buy tax-exempt bonds on the domestic market, he said.

JPMorgan executives had expected that reforms that took effect last year, increasing the tax burden on exclusive funds for rich Brazilians, would persuade those customers to diversify more, benefiting offshore investments.

But that didn’t happen, “at least at first,” Zanuto said.

The bank estimates that rich Mexicans have about 80% of their investments abroad, while for Brazilians that figure is less than 30%, creating many opportunities for diversification. Chileans also invest the majority of their fortunes in local markets, according to JPMorgan.

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“Last year, the United States was the place where global investors looked to invest, with the S&P breaking several records,” Figueiredo said. “And the bank expects that this good momentum on the American stock market should continue this year.”

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