Their combined assets under management (AUM) hit US$91.5b in 2017.
Home to a total of 160 independent asset management firms, the combined private wealth held in Singapore and Hong Kong hit US$91.5b as of end 2017, accounting for 5% of regional high net worth wealth, according to a report from Asian Private Banker and Julius Baer.
Singapore is home to an estimated 90 independent asset managers with assets under management (AUM) clocking in at US$53.4b as of last year. On the other hand, Hong Kong hosts 70 IAMs that manage an estimated US$38.1b in private wealth, signifying the growing maturity of the Asian asset management market.
"The robust financial performance of IAMs in Hong Kong and Singapore, along with their burgeoning market share, allows us to say with confidence that the IAM market in Asia is ready for take off,” said Stratos Pourzitakis, head of research at Asian Private Banker.
“Flexibility in product offering and a client-centric strategy lie at the core of the IAM business model, and they offer a significant differentiator in Asia's rapidly evolving wealth management industry," Pourzitakis added.
However, Europe still leads the global asset management rankings with 2,500 firms operating in bank secrecy capital Switzerland alone to manage an estimated US$430b in private wealth.
Nevertheless, a growing number of high-net worth individuals settling in Singapore may soon give the Swiss city a run for its money as the lion city has emerged as the wealthiest city in Asia and fifth in the world with over 1,400 individuals in Singapore with a net worth of over US$50m, according to Knight Frank’s wealth index.
Knight Frank also noted that a 15% rise in Asia’s ultra-wealthy cadre took its population to 35,880. In China, the ultra-wealthy population is expected to more than double in the next five years whilst there will also be strong growth in Japan (+51%), India (+71%), Indonesia (+66%) and Malaysia (+65%).
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