SEOUL – In the rapidly shifting world of asset management, client preferences are evolving at breakneck speed, demanding more flexible, income-generating, and accessible investment options amid economic uncertainty.

At J.P. Morgan Asset Management’s ( JPMAM ) inaugural APEC Media Summit in Asia, held at the Conrad Hotel in Seoul, regional CEO Dan Watkins highlighted how these changes are reshaping the industry. About 20 financial journalists from China, Hong Kong, Korea, Singapore, and Taiwan attended the one-day summit, where JPMAM executives from New York, London, and Hong Kong gave presentations on the outlook for global and US equities, as well as global and Asia fixed income, alternatives, and exchange-traded funds ( ETFs ).

“Investors are increasingly seeking products that blend traditional strategies with innovative features, such as lower volatility and higher yields, in a low-growth, low-rate environment. This shift is not just a trend but a structural transformation, pushing firms like JPMAM to prioritize active ETFs, alternatives, and tailored product innovations to meet these demands,” Watkins says.

Asia's asset management sector is uniquely positioned to capitalize on this evolution, given the region's extraordinary opportunities and complexities, he says.

Distinct challenges, potential

Each market – from established hubs like Hong Kong, Taiwan, and Japan, to emerging powerhouses Australia, Singapore, Southeast Asia, and Korea – presents distinct rhythms, challenges, and potential. China remains a long-term strategic priority, underscoring the fragmented yet fast-moving nature of the landscape.

“Staying connected, sharing ideas, and building relationships is more important than ever,” Watkins says, positioning the summit as a platform for candid insights into business priorities and market trends.

JPMAM's growth trajectory in Asia-Pacific ( APAC ) illustrates its adaptation to these preferences. The firm has crossed US$300 billion in assets under management ( AUM ) in the region earlier this year, doubling from 2019 levels when Watkins arrived.

Globally, JPMAM now manages over US$4 trillion, a milestone reflecting client trust. Looking ahead, the ambition is bold: double APAC AUM again within five years and eventually reach US$1 trillion. This expansion builds on three pillars – core markets with deep client ties, emerging regions showing remarkable momentum ( like Korea, where AUM has more than doubled in five years ), and China’s vast potential.

Active ETF listings

Central to this strategy is the explosive rise of active ETFs, which are transforming market access for investors craving efficiency and education. Watkins notes significant growth in Taiwan, China, and Australia.

This year alone, JPMAM registered eight UCITS ETFs in Singapore, partnered with local managers for master-feeder structures in Hong Kong and Southeast Asia, and launched four ETF model portfolios with Vanguard in Australia.

An upcoming US tech-focused active ETF listing in Taiwan further exemplifies this push. Beyond launches, the focus is on client education to unlock the vehicle's value, aligning with preferences for transparent, high-potential investments.

Alternatives are another key area where client demands are driving change. Once seen as optional, these assets are now essential, particularly for private wealth investors seeking flexibility. New vehicles are emerging to make alternatives more accessible, but Watkins stresses the importance of responsible design and client protection.

“As we move further into this retail space, robust, transparent solutions are critical,” he says, to ensure that the products meet evolving needs without posing undue risks.

Product innovation rounds out JPMAM's priorities, directly addressing preferences for stable income in uncertain times. A prime example is the equity high-income ( EHI ) strategy, which combines equities with an options overlay for higher yields and reduced volatility. Following the successful Asia EHI launch in Hong Kong, expansions include global EHI and Japan EHI variants. Investors value these as alternative passive income sources, especially in low-inflation settings.