, Singapore

Singapore's assets under management spike up 9% to $2.6t

It accounted for almost entirely new AUMs.

Amidst the modest 1% improvement in global assets under management (AUM), Singapore posted a faster growth at 9%, inching up the local AUM from $2.36 trillion to $2.56 trillion in 2015.

According to the latest Singapore Asset Management Survey report by Monetary Authority of Singapore (MAS), the increase was accounted for almost entirely by new AUMs.

The report revealed that the city-state’s AUM growth was on par with Asian regional growth at 10% to US$5.2 trillion.

However, it observed that trends across segments were mixed. For instance, while private equity and real estate grew by over 40% and 80% to S$136 billion and S$69 billion respectively, AUM managed by traditional asset managers increased at a modest pace of 4%.

"These trends illustrate the crossroads facing the asset management industry: Interest rates, which have been low for several years, look likely to remain low for longer. 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," the report said.

It added that 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," the report claimed.
 

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