In the three years since a 2003 launch in the United States, JP Morgan’s behavioral financeproducts had attracted new assets at a rapid pace. The Asset Management unit at JP Morgan hadbeen a pioneer in what it termed “Behavioral Investing.” It had over a decade of experience since1992 when it offered an initial retail product in the United Kingdom.2 In the late 1990s, JP Morganoffered a wider range of mutual funds in the U.K. and Europe, and began to focus its efforts on thelarger U.S. market.On the investment side, Chris Complin, chief investment officer (CIO) for behavioral financeproducts globally, had all five new products in the top 20% of their Lipper categories.3 This providedconfirmation for a concept that been successfully applied internationally. On the business side of theAsset Management unit, Richard Chambers, the head of U.S. and European marketing, had giveninvestor psychology a central role in the branding of the new funds. The idea that well documentedbehavioral biases could create opportunities for JP Morgan’s investment managers seemed toresonate with retail investors.Competing asset managers used similar investing principles, but few had gone as far inembracing psychology and behavioral finance in the retail market. So far, JP Morgan’s approach hadbeen successful. By the third quarter of 2006, total assets under management in U.S. funds had risen