Singapore Assets Outpace Asia Growth
Singapore's asset management industry grew by 19 percent last year, driven by higher valuations and inflows to Asian markets.
Singapore's asset management industry rose by 19 per cent from a year ago to $3.3 trillion at the end of 2017, outpacing the 11 percent growth seen in Asia. The growth was broad-based across traditional and alternative assets, according to data from the Monetary Authority of Singapore (MAS).
«In 2017, 78 percent of Assets under Managememnt (AUM) was sourced from outside of Singapore. 67 percent of total AUM was invested in Asia Pacific, with investments into ASEAN countries accounting for 39 percent of AUM,» the MAS wrote in its 2017 Singapore Asset Management Survey.
In the survey of about 800 respondents across institutions, asset managers continue to view Singapore as a conducive place to conduct portfolio management activity.
Strong Growth in Traditional AUM
Growth in traditional assets under management (AUM) soared to 20 per cent in 2017, versus only 3 per cent in 2016 while growth in alternative AUM held steady at 17 per cent.
Within alternative AUM space, private equity AUM growth rose by 23 per cent, driven by the deployment of capital by leading global managers for their flagship Asia-focused funds. However, venture capital AUM growth fell, as managers returned capital to investors.
Fastest Region For AUM Growth
According to a report by McKinsey published this month, Asia is the world’s fastest-growing asset- management market. AUM in the region leapt by 11 percent year-on-year to a record US $16 trillion by the end of 2017.
Asia has captured nearly 45 percent of global flows over the past five years. Asia now represents about 18 percent of the global total of US$89 trillion.
