Bloomberg News reports that the departures aren’t just normal churn, investment consultants say. They result from a clash between JPMorgan’s outpost in Columbus, Ohio -- where the exits took place -- and New York headquarters, according to people familiar with views of the employees in the unit. The issue: Money managers in Columbus, who outperformed their bond colleagues in New York during the financial crisis, felt marginalized as the firm integrated its global fixed-income operations, the people said.
Some JPMorgan clients are noticing. Just in the last few weeks, pension managers including the Los Angeles Department of Water and Power have threatened to yank about $1.5bn in funds citing the unusual attrition rate, public documents show.
The discord comes at a piece of JPMorgan’s asset management arm that oversees almost a third of its fixed-income assets. The bank says it hasn’t changed its commitment to the fixed-income operation in Columbus, which manages about $140 billion. But the unit has seen its independence chipped away as more responsibility is shifted to New York, the people said.
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