JPMorgan Chase & Co (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.
The firm's CEO for Europe, the Middle East and Africa, Patrick Thomson, said active exchange-traded funds (ETFs), alternative investments and partnerships with large wealth managers will drive this expansion.
Over the past nine years, JPMorgan has grown its European assets from $500 billion to $1 trillion, helped by rising markets and client inflows.
Its European active ETF business has grown to $60 billion since launching five years ago.
The expansion comes against a backdrop in which PwC forecasts that the European asset management industry will grow at an annual rate of 5.6%, reaching nearly $50 trillion by 2030.
As regulators seek to broaden access to private markets, alternative assets including private equity and private credit are expected to attract more investment.
Thomson listed European equities, bonds and infrastructure as promising investment areas.
He also noted that financing demand for energy networks and other infrastructure projects is 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 employs 1,400 engineers.
Despite widespread pessimism about the UK economy, Thomson remains optimistic about the UK, saying that ahead of the government's upcoming budget, stable policies that encourage economic growth will help improve the country's investment outlook.
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