The Zhitong Finance App learned that J.P. Morgan Chase (JPM.US)'s asset management business plans to double the size of its assets under management in Europe to 2 trillion US dollars within five years, betting on the growing demand for investment products from wealthy investors and young investors.
Patrick Thomson, the company's CEO for Europe, Middle East and Africa, said active exchange-traded funds (ETFs), alternative investments, and partnerships with large wealth managers will drive this expansion.
Over the past nine years, J.P. Morgan has increased its European assets from $500 billion to $1 trillion, thanks to rising markets and customer capital inflows. Its European active ETF business has grown to $60 billion since its launch five years ago.
The reason behind this expansion is that, according to PwC forecasts, the European asset management industry is expected to grow at a rate of 5.6% per year to reach a scale of nearly $50 trillion by 2030. Alternative assets, including private equity and private credit, are expected to attract more investment as regulators seek to expand access to private equity markets.
Thomson listed European stocks, bonds, and infrastructure as promising investment areas. He also pointed out that the demand for financing energy networks and other infrastructure projects is growing.
J.P. Morgan Chase plans to rely on endogenous growth rather than major acquisitions, and is supported by technology investment. Its asset management division spends approximately $600 million globally each year on technology and has 1,400 engineers.
Despite general pessimism about the British economy, Thomson is optimistic about the UK. He said that a stable policy to encourage economic growth will help improve the country's investment prospects until the government is about to announce the budget.