Singapore AUM up 19% to $3.3 trillion in 2017: MAS
SINGAPORE (Oct 25): Singapore’s asset under management (AUM) climbed 19% y-o-y to hit $3.3 trillion in 2017, according to the Monetary Authority of Singapore (MAS) in a new report published Thursday.
Growth in Singapore’s asset management industry was broad-based across traditional and alternative assets, the central bank says. This was on the back of higher valuations and inflows to Asian markets.
Traditional sector AUM gained 20%, led by global asset managers moving their operations in Singapore. This includes AIA, which set up its first group-wide regional investment hub here.
Meanwhile, alternative sector AUM increased by 17%, led by private equity (PE) and hedge fund managers.
“Singapore serves as a Global-Asia gateway for asset managers and investors to tap the region’s growth opportunities,” MAS says in the report.
Demonstrating Singapore’s role in serving regional and international investors, 78% of AUM was sourced from outside of Singapore in 2017.
At the same time, the Asia Pacific region continues to be a key investment destination for Singapore-based asset managers. Some 67% of total AUM was invested in Asia Pacific, including 17% which was invested in Singapore. Investments into Asean countries accounted for 39% of AUM.
“Situated in the heart of the fastest growing region in the world, Singapore serves as a gateway into Asia and Asean,” the report says. “Public asset owners and global institutional investors leverage Singapore as their base to access public and private market opportunities across the whole of Asia, including ASEAN, China and India.”
In the 2017 edition, MAS’s annual asset management survey saw 800 respondents from financial institutions including banks, finance and treasury centres, capital markets services licensees, financial advisers, and insurance companies.
