why don't BB's manage equities, reduce trading cost?

Huh? Perhaps you're confused about how bank asset management departments are set up. JPMAM does indeed "manage equities in-house" -- in fact, I think they have north of 30 equity mutual fund offerings...

https://www.jpmorganfunds.com/cm/Satellite?UserFriendlyURL=mutualfunds&…

... and maybe 20 fixed income mutual funds, as well as a hedge fund, a few private equity funds, and some random credit funds. All of these funds are managed by JPMAM employees.

Asset management divisions like JPMAM also generally have some fund-of-fund investment vehicles (which is what I think you're referring to in your post), where the group allocates capital to other mutual or hedge fund managers in order to minimize risk. This is just one of many offerings, as shown above, and usually represents a fairly small piece of the overall AUM for a bank asset management division.

Hope that clears up some confusion

You're a fucking idiot.

so JPMorgan's mutual funds essentially have zero trading cost because they can just leverage their own traders?

what about access to IPOs? they can buy stock at a discount to other funds who have to pay for the spread

and trading costs of shorting/exiting a large position is essentially 0?

when i talk about trading costs, i mean commission paid, opportunity cost of the spread, and brokerage costs.

big funds like t rowe have to buy shares from banks like jpmorgan (who make a market)

what i'm saying is, do you not think jpmorgan asset management will 1) pay a lower (or none) commission when it buys shares from its own trading team vs. what outside firms pay, and 2) get a better bid-ask spread than outside competitors, etc

if so, this is a massive advantage jpmorgan mutual funds have over t rowe.

also, you're wrong about IPO access being required to be the same for in house and contracted funds. the company being brought public gets the final say on how many shares get allocated. hedge funds almost always get less than vanillas.

...what? do you know anything about how trading works? you're also not answering my question.

I'm talking about commissions that traders get on executing trade, aka making a market (plz wikipedia this if you don't know what it is). This is one of the primary business of BB's... the TRADING in Sales & Trading.

I'm saying, JPMAM mutual funds can buy equities from their own trade desk without paying this commission, which can be expensive when you're talking about hifreq or large purchases. this is an advantage.

ALSO, the IB works with the client on allocating shares above a certain %, and you can bet that any deal JPM makes, they can give priority, or at least preferential treatment to, their own mutual funds. this is advantage #2

but thanks for telling me diversified portfolios are good.. sometimes i wonder if top WSO users are just high schoolers and insurance brokers

peace