Singapore's asset management industry grows assets by 11.8% in 2013

The asset management industry continued to grow last year, driven by sustained interest among regional and global investors in investing in Asia. -- ST PHOTO: DESMOND WEE
The asset management industry continued to grow last year, driven by sustained interest among regional and global investors in investing in Asia. -- ST PHOTO: DESMOND WEE

SINGAPORE - The asset management industry continued to grow last year, driven by sustained interest among regional and global investors in investing in Asia.

Total assets managed by locally based managers rose by 11.8 per cent last year to $1.82 trillion, the Monetary Authority of Singapore (MAS) said in its annual industry survey report.

Growth was broad-based, with both traditional and alternative managers registering good increases in assets under management.

Traditional asset managers contributed substantially to the growth, mainly by launching innovative products such as multi-asset solutions and specialised fixed income strategies.

But growth was particularly strong among alternative asset managers, which include hedge funds and private equity players. These managers typically cater to institutional or high net worth clients.

Overall assets under management (AUM) at hedge funds grew 20.9 per cent to $88.8 billion at the end of last year, reflecting rising interest from global investors in Asia-focused strategies.

And private equity fund AUM grew 33.6 per cent to reach $74.7 billion. There has also been continued interest from global private equity players to set up in Singapore as they seek out new investment opportunities in South-east Asia, the MAS said.