J.P. Morgan targets $2 trillion in European assets as ETF demand grows

J.P. Morgan (JPM) Asset Management aims to double its European assets under management to $2 trillion within five years, betting on growing demand for investment products among wealthy and younger investors.

Patrick Thomson, the firm's chief executive for Europe, the Middle East and Africa, told the Financial Times that active exchange-traded funds, alternative investments and partnerships with major wealth managers would drive expansion.

J.P. Morgan (JPM) has increased its European assets from $500 billion to $1 trillion over the past nine years, helped by market gains and client inflows. Its active ETF business in Europe has reached $60 billion since launching five years ago.

The expansion comes as Europe's asset management industry is projected to grow 5.6% annually to nearly $50 trillion by 2030, according to PwC. Alternative assets, including private equity and private credit, are expected to attract greater investment as regulators seek to broaden access to private markets.

Thomson identified European stocks, bonds and infrastructure as promising investment areas. He also pointed to growing demand for financing energy networks and other infrastructure projects.

J.P. Morgan plans to pursue organic growth rather than major acquisitions, supported by technology investments. Its asset management division spends about $600 million annually on technology worldwide and employs 1,400 engineers.

Thomson also expressed optimism about the United Kingdom despite widespread pessimism over its economy. He said stable policies that encourage economic growth would help improve the country's investment outlook ahead of the government's upcoming budget.