S’pore fund managers’ AUM rises 9% in 2015
SINGAPORE: Fund managers here saw a 9% increase in assets under management to S$2.6 trillion (RM7.8 trillion) in 2015, buoyed by growth in the alternative asset sector, the central bank said yesterday.
Assets under management (AUM) at alternative asset managers grew 29% to S$410 billion, while traditional asset managers saw their AUM increase by a more modest 4%, the central bank said.
“These trends illustrate the crossroads facing the asset management industry: Interest rates, which have been low for several years, look likely to remain lower for longer,” the Monetary Authority of Singapore (MAS) said in the annual survey.
“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,” it said.
Within the alternative sector, private equity/ venture capital AUM rose 47% to S$136 billion, while real estate AUM grew 80% to S$69 billion.
AUM of hedge fund managers grew by 11% to S$119 billion, while REIT managers saw their AUM expand by 7% to S$85 billion, MAS said.
The 9% growth in total assets managed by Singapore-based asset managers was slower than the pace in 2014, when AUM rose by 30%. – Reuters