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Assets under management (AUM) by Singapore firms soared by 30 percent to S$2.36 trillion in 2014 from S$1.82 trillion a year ago, according to the results of a survey recently released by the central bank.
“The robust growth was derived largely from positive asset inflows arising from Asia’s growth dynamism and Singapore’s position as a pan-Asian asset management hub,” said the Monetary Authority of Singapore (MAS).
Traditional AUM surged by 38 percent year-on-year driven largely by global asset managers which had broadened their scale of investment activities in Singapore.
As for alternative AUM, it increased by 17 percent to S$318 billion. In particular, private equities recorded the strongest growth of 24 percent thanks to favourable environment for investments and fund raising.
That for hedge funds jumped by 21 percent to S$108 billion in light of robust net flows and more new hedge fund managers working in Singapore. AUM of real estate investment trusts (REITs) and property asset managers climbed by 9 percent and 10 percent to S$80 billion and S$38 billion respectively.
As a result of the strong growth in 2014, industry AUM have climbed at a 14 percent compound annual growth rate (CAGR) over the past five years.
Meanwhile, there were 591 registered and licensed fund managers last year, reflecting a net increase of 38 from 553 in 2013.
The latest MAS survey of Singapore’s asset management industry polled financial institutions, insurance companies, financial advisers and capital markets services licensees (including REIT managers), but excluded direct investments by government-related entities. A total of 735 participants took part in the 2014 survey.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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