The upper crust may soon be a bit lower at J. P. Morgan & Co. Its private bank, which now serves only people with at least $5 million to invest, may lower the threshold to $1 million for a new mutual fund.
Morgan won't comment officially, but one source says the change would offer big opportunities. We've done research, and it's a huge market," according to the source.
Morgan formed the Pierpont family of mutual funds in the early 1980s to offer to its clients, namely institutions and the superrich. Now it's considering launching an "offshoot" of the Pierpont funds to reach those with $1 million to $5 million to invest.
The bank has already decided to add a U.S. Treasury fund to its seven-member Pierpont family in January.
"Clearly, mutual funds are an area the bank is focusing on," the source says. "We don't think mutual funds as a vehicle is going to contract any time soon."
