Assets under management in Singapore climbed 19.3% to $3.3t in 2017

78% of AUM was sourced from outside in Singapore in 2017.

Singapore’s asset management industry achieved robust growth in 2017 with assets under management (AUM) jumping 19% YoY to $3.3t, according to the Monetary Authority of Singapore’s (MAS) annual Asset Management Survey.

The survey 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 in the report.

Meanwhile, alternative sector AUM rose 17%, led by private equity (PE) and hedge fund managers.

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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 totalAUM 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 agency said.
MAS expects the roll out of the framework by H2 2019.

Globally, AUM increased 12% to US$79.2t, expanding higher than the 7% in 2016 backed by higher net asset flows and valuation gains.