JPMorgan’s Erdoes Says ‘Enormous’ Prospects in Emerging Markets

CLSA's Wood on Asia Concerns, China Outlook, India

Mary Callahan Erdoes, the head of JPMorgan Chase & Co.’s asset management unit, said she’s positive on emerging markets given the prospects for economic growth in many developing countries.

“There’s enormous opportunities in some of these places given the global backdrop we have,” Erdoes said at the CNBC Institutional Investor Delivering Alpha Conference in New York on Tuesday. “In the rest of the world 80 percent of the countries are in an expansionary mode. Just 24 months ago that was below 50 percent, so you’ve got everything moving in the right direction.”

But investors “can’t buy them sort of wholesale and think they’re all the same,” she said. China, where JPMorgan has a joint venture with the government, remains a good opportunity given the increase in affluence.

Mary Callahan Erdoes, chief executive officer of asset management at JPMorgan Chase & Co. looks on during a panel session at the World Economic Forum (WEF) in Davos, Switzerland, on Wednesday, Jan. 20, 2016. World leaders, influential executives, bankers and policy makers attend the 46th annual meeting of the World Economic Forum in Davos from Jan. 20 - 23. Photographer: Matthew Lloyd/Bloomberg *** Local Caption *** Mary Callahan Erdoes
Mary Callahan Erdoes
Photographer: Matthew Lloyd/Bloomberg

“There were 10 million of them (affluent consumers) at the turn of the century; there’s 200 million of them today,” she said. “That’s 20-fold the amount of people that can buy consumer staples, consumer discretionary, invest in their own healthcare. You’ve got to get in on the ground and you’ve got to find these opportunities and you’ve got to just go with it. If you spend the time and you have patient capital, you will outperform these markets in a drastic way and especially versus the risk-free rate.”

Erdoes, 50, is considered a possible successor to Chief Executive Officer Jamie Dimon. Hired in 1996 to head fixed-income investing for wealthy individuals, foundations and endowments, she became CEO of the private bank in 2005 and head of asset management in 2009.

The bank’s wealth management division posted a profit of $624 million in the second quarter, fueled by record client assets of $2.6 trillion.

— With assistance by Katia Porzecanski, and Hugh Son

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