Asset managers in Singapore grew their assets under management (AUM) by 9% in 2015 to S$2.6 trillion, according to data released by the Monetary Authority of Singapore (MAS).
The rise in AUM was almost entirely due to new assets under management, though the figure marked a decline from the 30% growth recorded in 2014, the country’s central bank said.
Asset managers recorded S$203bn in net inflows in 2015, with broad-based net inflows across the traditional and alternative sectors.
Traditional AUM grew by 4%, while alternative AUM grew by 29% to S$410bn.
AUM of private equity/venture capital grew by 47% to S$136bn, while real estate grew 80% to S$69bn.
AUM of hedge fund managers grew 11% to S$119bn, while for REIT asset managers it grew 7% to S$85bn.
Globally, AUM increased 1% to US$71.4 trillion in 2015, compared to 8% a year ago, driven by slower growth in emerging markets and fears of monetary policy normalisation in the US. AUM in Asia, excluding Japan and Australia, however, grew 10% to US$5.2 trillion.
“These trends illustrate the crossroads facing the asset management industry: Interest rates, which have been low for several years, look likely to remain low for longer. This continues to have implications for yields and cost, and the industry needs to re-think how it can balance between investor demands for stable returns net of fees,” MAS said.