Singapore's assets under management up 7% to $2.7 trillion last year: MAS

The Monetary Authority of Singapore (MAS) building in Shenton Way.
The Monetary Authority of Singapore (MAS) building in Shenton Way. PHOTO: ST FILE

SINGAPORE - Singapore's assets under management expanded last year (2016) on the back of a global recovery in the industry.

Total assets managed by locally-based managers grew 7 per cent to S$2.7 trillion last year, said the Monetary Authority of Singapore (MAS) on Tuesday (Sept 26) in its annual industry survey.

Sustained net fund inflows and broad-based improvements in market valuations supported the growth, said MAS.

The 2016 growth in Singapore's AUM was slightly lower than the 9 per cent increase seen in 2015.

Alternative assets under management (AUM) in Singapore grew 17 per cent, in line with global trends. Alternative assets include venture capital, hedge funds and private equity funds, catering to institutional and ultra-wealthy clients.

On the other hand, traditional AUM here grew a modest 3 per cent.

The global asset management industry recovered in 2016, with AUM up by 7 per cent to US$69 trillion compared to 1 per cent in 2015.

A good part of this owed to valuations, as equity markets registered strong gains, said MAS. Passive funds and alternative assets continued the trend of growing faster than traditional assets at 14 per cent and 9 per cent respectively.

Said MAS: "Singapore will continue to deepen its venture capital and private equity capabilities and establish itself as a vibrant enterprise financing hub to support the next generation of Asian growth companies."

It said managers of those alternative assets "play an important role in stimulating economic dynamism and innovation".

MAS has been working with the industry to deepen the financing ecosystem for regional and local companies, and it will implement a simplified regulatory framework for venture capital managers by the end of 2017.

It has proposed a corporate and regulatory framework to facilitate the incorporation and domiciliation of investment funds across traditional and alternative fund vehicles - meant to "further strengthen Singapore's position as a compelling hub".

"The MAS will be responding to the public consultation in fourth quarter of 2017 and targets to implement the framework by 2018," it added in the report.