JPMorgan Hires Goldman's Malangone to Help Oversee $170 Billion

  • Malangone will work on insurer portfolios, be based in London
  • Bank builds multi-asset solutions group with Malangone hire

JPMorgan Chase & Co., the largest U.S. bank by assets, hired Nick Malangone from Goldman Sachs Group Inc. to bolster a team overseeing funds for insurance-company clients.

Malangone joined as a London-based executive director and will work as part of a multi-asset solutions group overseeing more than $170 billion globally in a newly created role, JPMorgan said in a statement Friday.

JPMorgan’s James Peagam is bolstering staff after he was named head of global insurance solutions in December. Money managers with insurance expertise are increasingly in demand as the industry struggles with shrinking portfolio returns and tighter oversight by regulators.

“Record low bond yields continue to weigh on profits and dent investment returns for insurance companies, particularly across Europe, forcing them to consider greater diversification as they search for yield,” Peagam said in the statement. “At the same time, Solvency II capital charges have heightened insurers’ focus on the balance of risk, capital consumption and reward within their investment portfolios.”

Insurers and asset managers have been turning to Goldman Sachs veterans as they seek to add talent. Prudential Financial Inc. announced this week that it added Stephen Warren from the New York-based bank to co-lead an investment risk management and quantitative research team. Hartford Financial Services Group Inc. hired Goldman Sachs’s John Melvin in September as head of portfolio management at the insurer’s investing subsidiary. Andrew Williams, a spokesman for Goldman Sachs, had no immediate comment.

Malangone was responsible for $15 billion of fixed-income assets for insurance company portfolios at Goldman Sachs, JPMorgan said. He previously worked at Aviva Investors and Morgan Stanley.

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