SINGAPORE - Fund managers in Singapore saw a 9 per cent increase in assets under management (AUM) to S$2.6 trillion in 2015, down from the 30 per cent growth enjoyed in 2014, the Monetary Authority of Singapore (MAS) said on Wednesday (Oct 5).
Globally, AUM grew just 1 per cent to US$71.4 trillion (S$97.8 trillion), compared to 8 per cent in 2014, weighed down by slower growth in emerging markets and fears of monetary policy normalisation in the US, MAS said in its annual survey of asset managers.
But Asia (excluding Japan and Australia) remained a bright spot for sourcing, with AUM growing 10 per cent to US$5.2 trillion, it added.
The rise in Singapore's AUM was due almost entirely to new assets under management. Whereas private equity/venture capital and real estate AUM grew by over 40 per cent and 80 per cent to S$136 billion and S$69 billion respectively, AUM managed by traditional asset managers rose at a modest pace of 4 per cent.
Several emerging market managers also saw outflows from their equity and bond funds, said MAS.
"These trends illustrate the crossroads facing the asset management industry. Interest rates, which have been low for several years, look likely to remain lower for longer," said MAS.
"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. As public market returns disappoint, more investors are seeking excess returns from illiquidity and credit risk premia in private markets. This has caused managers to search for new sources of value to deploy capital."