S'pore AUM up 5.4% to $3.4 trillion last year: MAS poll

Assets under management rose 5.4 per cent to $3.44 trillion.
Assets under management rose 5.4 per cent to $3.44 trillion.ST PHOTO: LIM YAOHUI

Assets under management (AUM) increased here last year despite turbulent financial markets.

AUM rose 5.4 per cent to $3.44 trillion, due in large part to a 15 per cent surge in alternative assets to $646 billion.

But the increase was down on the 19 per cent surge in 2017.

The numbers come from a survey by the Monetary Authority of Singapore (MAS), which polled financial institutions, real estate investment trust managers and insurance firms, among other entities. Around 800 respondents participated in it.

It noted that Singapore continued to serve as the global-Asia gateway with three-quarters of AUM sourced from overseas last year.

Inflows were strong in traditional sector strategies managed or advised out of Singapore, but these were more than offset by weaker valuations across major asset markets in tandem with global trends.

As a result, traditional AUM shrank 7 per cent last year.

Inflows were strong in traditional sector strategies managed or advised out of Singapore, but these were more than offset by weaker valuations across major asset markets in tandem with global trends.

However, the alternatives sector continued to register robust growth, expanding by 15 per cent to $646 billion last year.

The MAS said: "Singapore, as a leading private markets hub, is an attractive location for investment managers and an increasing number of global public investors, including sovereign wealth funds and pension funds."

Its asset management industry's prospects are favourable, it added.

AUM in Asia-Pacific is expected to almost double from 2017 to about US$30 trillion in 2025, according to PricewaterhouseCoopers's estimates, with Singapore well placed for this, the MAS noted.

Fresh demand from global investors for growing areas such as private markets, infrastructure and green investments will also boost the ecosystem here.

A version of this article appeared in the print edition of The Straits Times on September 19, 2019, with the headline 'S'pore AUM up 5.4% to $3.4 trillion last year: MAS poll'. Print Edition | Subscribe