Singapore’s asset under management (AUM) climbed 15.7% y-o-y to $4 trillion in 2019, according to the Monetary Authority of Singapore (MAS) in a report released on September 30.
The growth was broad-based across traditional and alternative assets, according to the central bank.
Over the last five years, MAS said that the industry’s AUM expanded at a compound annual growth rate (CAGR) of 11%. There was an increase of 108 registered and licensed asset managers, which brings the total number to 895 in 2019.
The traditional sector registered a strong rebound in 2019 with a 25% growth y-o-y.
The alternatives sector grew 12% y-o-y to $721 billion, led by private equity and venture capital managers. The combined AUM from both of these asset classes gained 16% y-o-y to $254 billion.
“Singapore continues to serve as the Global-Asia Pacific gateway for asset managers and investors,” says MAS.
In 2019 alone, 76% of AUM originated from outside of Singapore, and 69% of AUM was invested into the Asia Pacific region. Of the 69%, 15% invested in Singapore.
At the same time, the Asia Pacific region remained a key source with net inflows from clients increasing by 21% y-o-y in 2019, compared to the 1% decline in 2018. Funds invested into the Asia Pacific grew 24% y-o-y in 2019, compared to the 1.3% gain in 2018.
Southeast Asian countries remained key investment destinations, making up 37% of investments into Asia Pacific.
In the 2019 edition, MAS’s annual asset management survey saw 972 respondents from financial institutions including banks, finance and treasury centres, capital markets services licensees, financial advisers, and insurance companies.
