J.P. Morgan Fleming Asset Management is looking to ramp up its assets under management and is aiming to be among the top five fixed-income managers, said Gary Madich, chief investment officer of J.P. Morgan's Columbus-based fixed-income group. The manager currently has $78 billion in fixed-income assets and Madich declined to specify a numerical goal but said the firm would like to compete with Pacific Investment Management Co. and Western Asset Management Co. and the like. PIMCO manages over $400 billion.
Madich said the Columbus-based operation, which includes Banc One Investment Advisors, has had very few non-U.S. clients and is looking to expand its business by adding European and Asian clients. While spreads are tight in fixed income across the board, the manager noted specialty-type mandates such as mortgage-backed securities and high yield still do offer some spread and foreign demand is strong for such products, rather than typical aggregate-type mandates. Madich does not currently invest in non-dollar denominated paper but expects that will change over times as it "fills out its menu" of fixed-income products.
