JP Morgan Asset Management to drive expansion in Asia-Pacific - The Business Times

[SINGAPORE] Dan Watkins, CEO of JP Morgan Asset Management (JPMAM) for the Asia-Pacific, said the firm is “a third of the way” towards its goal of doubling its assets under management in the region to US$600 billion by 2030.

He was speaking in a fireside chat with JPMAM global market strategist Raisah Rasid at the firm’s Asia-Pacific media summit on Tuesday (Oct 27).

Watkins noted that the Asia-Pacific benefits from “many healthy tailwinds”, such as improving economies and savings ratios, developments in retirement systems and support from governments for capital markets.

“I expect every market we operate in to contribute to our growth in the next five years,” he added.

The main growth engines are expected to be China, where JPMAM recently secured the approval of an active exchange-traded fund, and Australia, which offers opportunities in its superannuation system and a growing private wealth market.

Japan is expected to be the third growth engine, thanks to its corporate governance reform initiatives and government support for asset management firms.

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“You also have interest rates and yields turning positive,” said Watkins. “I think Japan is a fantastic opportunity.”

In the asset management industry, the Asia-Pacific accounted for half the global net flows between 2021 and 2025, he noted. “One of the most important statistics is that 17 per cent of assets in the Asia-Pacific is managed externally, compared to 40 per cent in Europe and nearly 60 per cent in the US.”

The firm manages a total of US$4.8 trillion in assets. Winning more Asia-Pacific business would be a “big prize”, he said.

JPMAM’s product line-up, in particular its early foothold in the active ETF market, is expected to drive its expansion. The firm recently rolled out evergreen private-market funds under its “J series”, which have so far comprised private equity and private credit funds.

“In the wealth space, there is still a lot in cash, and (potentially) a lot of money to put to work,” said Watkins. “Clients are looking at different aspects of income. Retail investors are entering the market through the digital ecosystem, and there’s significant interest in ETFs.”

Institutional allocation to alternatives is between 22 and 25 per cent, but only 4 per cent in private wealth accounts.

As at end-2025, the firm was the largest active ETF manager globally; it manages around US$323 billion in the segment. Its flagship fund, the JP Morgan Active Equity Premium Income ETF (Jepi), has nearly US$46 billion in assets.

Watkins said that ETFs are unlikely to take market share from mutual funds in terms of flows.

“We’ve had a lot of success in the institutional space with ETFs, which institutions regard as a liquidity option or asset allocation. In the retail space, increasingly investors are buying ETFs on their own, just as they buy stocks and shares. That’s a whole new growth engine.”

Asked by Rasid whether he thought private-asset funds were a “repackaging of institutional risk for less-experienced investors”, he replied that one ultimately needs to “go back to basics”.

“What is the (private client’s) liquidity mindset? What’s their risk profile and objective? This is absolutely not about bringing an institutional product to the wealth market. You have to be much more thoughtful than that.”

However, improved access to private markets, which are typically restricted to sophisticated investors, “does not equal liquidity”, Watkins said.

“Asset and wealth managers have a real responsibility, similar to fiduciaries, to be thoughtful about the suitability of the product, redemption windows and minimum thresholds.”

In the fund management industry, he believes three factors underpin success in winning assets amid stiff competition: a manager’s operating model, distribution strategy and use of artificial intelligence.

He identified scale as an advantage because of the significant ongoing investments in technology and research. But there is also room for managers with a differentiated offering.

“Performance absolutely should be key but it doesn’t guarantee flow. You need a smart distribution strategy… AI is going to change the differential. The asset manager who can use their proprietary data better, bring insights and govern AI well will deliver.”

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