Total assets managed by Singapore-based asset managers rose by 1% to $2.39trn (S$3.3trn) at the end of 2017, compared to $1.95trn (S$2.7trn) in 2016, outpacing the 1% average growth rate of the previous five years according to a Monetary Authority of Singapore report.
The report found that the expansion was recorded across traditional and alternative assets, on the back of higher valuations and inflows to Asian markets.
“Traditional sector AUM gained 20%, as we continue to anchor the operations of global asset managers in Singapore, including AIA which set up its first group-wide regional investment hub here,” MAS said.
Meanwhile, alternative sector AUM rose 17%, led by private equity (PE) and hedge fund managers.
Asset managers continue to view Singapore as a conducive place to conduct portfolio management activity, the MAS said in its annual Asset Management Survey. Some 800 respondents across institutions such as banks, finance and treasury centres, and financial advisers took part in the 2017 edition of the survey.
As a global-Asia gateway for asset managers and investors to tap the region’s growth opportunities, 78% of AUM was sourced from outside in Singapore in 2017. On the other hand, 67% of total AUM was invested in Asia Pacific, with investments into ASEAN countries accounting for 39% of AUM.
On 1 October, the parliament passed the Variable Capital Companies (VCC) Bill, following the MAS’ consultation on the VCC framework in 2016.
“The VCC framework will facilitate the domiciliation of investment funds in Singapore across traditional and alternative fund vehicles, for both open-ended and close-ended funds,” the regulator said.
Globally, AUM increased 12% to US$79.2t, expanding higher than the 7% in 2016 backed by higher net asset flows and valuation gains.