The chief executive of JPMorgan’s asset management business in Europe, Patrick Thomson, says international clients are expressing “much more interest” in the region.
“There is a very positive view towards Europe at the moment,” Thomson told delegates at a recent London conference organised by the asset manager. “That is predicted on policy stability. If you think of the institutions we have in Europe – the European Central Bank and the Bank of England – there is relatively predictable monetary policy.”
He added that “ very clear communication” on economic growth objectives from major European governments was also attracting investors interest: “Having stable, predictable policy – as opposed to other parts of the world where it is little less predictable – makes Europe a very attractive place to invest for the long term.
Thomson did not explicitly single out the US as a market where investors were retreating in the wake of president Donald Trump’s trade tariffs announced in May. He said it was “hard to determine” if investors were allocating to Europe “at the expense of other regions”.
He said: “We have international clients, with strong interest in European products, much greater than we have seen in the past ten years. That’s a very positive sign.”
Other fund management bosses have also indicated there is growing investor interest in European assets. DWS boss Stefan Hoops said a “structural shift” had taken place in the aftermath of the tariffs, prompting some of its retail investors to “repatriate” assets to Europe.
BlackRock CEO Larry Fink has also cited more client interest in Europe. “As Europe is now focused on growing instead of controlling, could Europe become a better destination for capital?
Meanwhile, Peter Branner, chief investment officer at Aberdeen Investments said in May that European stocks – as well as those in China – are looking more attractive”.
With the attraction of Europe, from investment point of view, it is not surprising that investment giant Goldman Sachs bolstered staff numbers in its European Union (EU) hubs by around 150 people over the last several months as investment fees bounced back.
The Wall Street bank ended 2024 with 1,182 employees at Goldman Sachs Bank Europe SE, which houses its EU employees, according to newly released accounts. That was an increase of 14 per cent compared with the previous year.
Goldman’s revenue for its EU businesses rose around 12 per cent to 1.9 billion euros last year, with investment banking and equities fees driving the increase. The Wall Street bank spent 732 million euros on compensation for the year, which is up by 12 per cent compared with 2023. There have been some changes to the value of stock options over the period, however.
Goldman also released numbers for the first quarter of 2025 for its EU operations, with employee numbers edging up again to 1,213 people. Compensation costs were up 6 per cent compared with the same period last year, it said.
The Wall Street bank has bolstered its team on the continent again after making cuts in 2023 amid deep lay-offs globally. Head count shrunk by 5 per cent, even as it continued to move both traders and dealmakers to the EU as part of its post-Brexit strategy.
Last year, Dirk Lievens, its head of dealmaking for financial institutions in Emea (Europe, Middle-East, Africa), relocated to Paris in a high-profile move. Key investment banking sector teams led by partners have been relocating from London to European cities including Frankfurt and Milan in recent years.
Goldman Sachs also increased pay for its London employees, with compensation costs swelling by nine per cent in the first quarter. It finished the first quarter with 3,615 employees, which is up by 256 compared with a year earlier, but flat from December.
Andy Jalil
The writer is our foreign correspondent based in the UK.
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