SINGAPORE - Hong Kong has overtaken Singapore to be the fifth largest wealth management centre in the world, a new report has shown.
With US$500 billion (S$676.6 billion) worth of assets tucked under its belt, Singapore fell a spot from last year although it recorded an increase of 25 per cent in its clients' assets since 2008, consulting firm Deloitte said on Monday.
Hong Kong achieved stellar growth of 142 per cent to US$640 billion worth of in assets under management in the same period, recording the strongest expansion among all contenders.
Hong Kong overtook Singapore for the first time in 2012.
Switzerland kept the top spot as the leading wealth management centre, with US$2 trillion worth of assets under management at the end of 2014, up 14 per cent from 2008.
"Switzerland remains the world's largest centre, but other locations are catching up rapidly - especially Hong Kong, the US and Singapore," said Mr Daniel Kobler, head of banking strategy, consulting at Delotte Switzerland.
The US closed in on Switzerland in third place, after growing its clients' assets by 28 per cent to US$1.4 trillion since 2008. In second place was the UK with US$1.7 trillion of assets, an increase of 13 per cent, while in fourth was Panama & Caribbean which saw assets fall 47 per cent to US$900 billion.
However, the growth in market share some countries has not been driven by a net growth in new client assets, said Deloitte. On the contrary, international wealth management centres recorded a drop of 23 per cent, with Switzerland losing 7 per cent.