Assets in the Lion City grew 19% to S$3.3trn ($2.39trn) in 2017 from S$2.74trn in 2016, according to the report, noting that the growth rate has outpaced the past five years’ average growth rate of 15%.
Net inflows totalled S$220bn, which compares to net inflows of S$116bn in 2016. In 2017, traditional and alternative funds were the drivers.
In 2017, growth was broad-based across traditional and alternative products, the report noted, with the traditional sector’s assets increasing 20%, compared to just 3% in 2016. Alternative assets increased a steady 17%, led by private equity and hedge fund managers.
Alternative assets in Singapore
Sourced and invested in APAC
Most of Singapore’s AUM (78%) was sourced from investors abroad, with the majority of offshore investors based in Asia-Pacific ex-Singapore.
Singapore’s AUM – source of funds
In terms of investment destination, Asia-Pacific continues to be the key destination for Singapore-based asset managers, accounting for 67% of total AUM in 2017 compared to 66% in 2016. Within Asia-Pacific, 29% was invested within Asean.
Singapore’s AUM – investment destination
The report also added that the number of registered and licensed fund managers increased by 55 to 715 in 2017.
The report noted initiatives of the Monetary Authority of Singapore aiming to develop the asset management industry.
For example, parliament has passed the Variable Capital Companies (VCC) Bill early this month, following the regulator’s consultation on the VCC framework last year. The VCC is a new corporate structure for investment funds, which is expected to launch in the second half next year, according to the report.
The MAS has also issued a set of guidelines early this month on the licensing and business conduct requirements to facilitate the provision of digital advisory services, such as robo-advisory, in Singapore, according to the report. The guidelines will improve clarity on how existing rules apply in the context of digital advisory services.