JPMAM hires Invesco's Lake in ETF expansion

JPMAM hires Invesco's Lake in ETF expansion

JPMorgan Asset Management has signalled the start of its expansion into the exchange-traded funds (ETF) arena by hiring former Invesco Powershares man Bryon Lake.

Mr Lake, who spent 12 years at Powershares most recently as head of its Emea business, was credited with driving the company's expansion and particular focus on smart beta and fixed income products.

At JPMAM he will take on the newly created role of head of international ETFs and lead the fund house's expansion into the space. Despite already running around $1.4bn (£1.2bn) in ETFs in the US, the firm's presence in Europe is non-existent. However, it signalled an intent to expand its ETFs business globally with a focus on smart beta products.

Mr Lake left Invesco Powershares last month and will join his new employer's London office reporting to global head of beta strategies, Michael Camacho.

JPMAM said Mr Lake will be responsible for driving the firm's expansion with a focus on identifying product opportunities in Europe and Asia.

Despite growing inflows into ETFs in the US and Europe, JPMAM faces challenges breaking into a highly concentrated market. Morningstar figures show the European ETF market attracted €48bn (£42bn) in net flows in 2016, bringing total assets under management to €546bn, €43bn of which were in smart beta products.

Yet, BlackRock's iShares brand dominated both net sales and overall market share. The firm accounts for 46.3 per cent of the total market and 55 per cent of inflows. Deutsche Bank's db X-trackers brand and Société Générale's Lyxor business accounted for a further 19.1 per cent of market share.

Mr Camacho said: "Our intention is to build a global beta strategies business with strategic, alternative and ETF capabilities. Expansion internationally represents the next step.

"Bryon brings impressive leadership and momentum to the team. He will be instrumental in helping to shape our strategy including our product development."