JPMorgan Chase & Co. said Thursday that it has agreed to buy out its venture with Cazenove Group for $1.7 billion, sealing the takeover of a 190-year-old British brokerage whose clients include the queen.

It has been profitable each year since beginning operations in 2005, even as markets crumbled in 2007 and 2008.

"They're starting to diversify their exposure away from the U.S. and U.S. asset classes," said Matthew McCormick, an analyst at Bahl & Gaynor Inc. in Cincinnati, which oversees $2.5 billion. "Most investors will give the benefit of the doubt that this is a good approach."

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