Case | HBS Case Collection | February 2007

Behavioral Finance at JP Morgan

by Malcolm P. Baker and Aldo Sesia

Abstract

Following a successful model in Europe, JP Morgan has introduced a set of five U.S. retail mutual funds with an investment philosophy and marketing strategy grounded in behavioral finance. The asset management group believes that understanding investor biases like overconfidence, anchoring, and loss aversion is key to generating returns on the investment side and educating clients on the advisory side.

Keywords: Banks and Banking; Investment Funds; Behavioral Finance; Competitive Advantage; Asset Management; Marketing Strategy; Product Marketing; Customer Focus and Relationships; Banking Industry; Financial Services Industry; United States; Europe;

Citation:

Baker, Malcolm P., and Aldo Sesia. "Behavioral Finance at JP Morgan." Harvard Business School Case 207-084, February 2007.