JPMorgan (JPM.US) Asset Management Goal: Double European Assets Under Management to $2 Trillion in Five Years, Betting on Active ETFs and Alternative Investments

JPMorgan (JPM.US) Asset Management Plans to Double European AUM to $2 Trillion in Five Years, Betting on Active ETFs and Alternative Investments JPMorgan's (JPM.US) asset management business plans to double its European assets under management to $2 trillion within five years, betting on growing demand for investment products from wealthy and younger investors. Patrick Thomson, CEO of the company's Europe, Middle East and Africa region, said active exchange-traded funds (ETFs), alternative investments, and partnerships with large wealth management institutions will drive this expansion. Over the past nine years, JPMorgan has grown its European assets from $500 billion to $1 trillion, supported by market gains and client inflows. Its European active ETF business has grown to $60 billion since launching five years ago. The expansion comes against the backdrop of an European asset management industry that is expected to grow at 5.6% annually to nearly $50 trillion by 2030, according to PwC forecasts. As regulators seek to broaden access to private markets, alternative assets including private equity and private credit are expected to attract more investment. Thomson identified European equities, bonds and infrastructure as promising investment areas. He also noted that financing needs for energy networks and other infrastructure projects are growing. JPMorgan plans to rely on organic growth rather than major acquisitions, supported by technology investment. Its asset management division spends about $600 million annually on technology globally and has 1,400 engineers. Despite widespread pessimism about the UK economy, Thomson remains optimistic about the UK. He said that ahead of the government's upcoming budget, stable policies that encourage economic growth will help improve the country's investment outlook.