S’pore fund man­agers’ AUM rises 9% in 2015

The Sun (Malaysia) - - SUNBIZ -

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

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