SINGAPORE (Nov 19): In 2017, global assets under management grew 12% to US$79.2 trillion ($109.5 trillion). Singapore’s AUM rose 19% y-o-y to $3.3 trillion, outpacing global AUM growth. Although global AUM growth was underpinned by China and the US last year, Singapore’s share of global AUM should continue to rise apace, spurred by its fintech hub positioning and as a gateway to Asian investment. As Asian economies continue to develop, GDP per capita rises, and equity and fixed income issuance rises in the longer term. Demand for pension and retirement plans will also grow as the population ages. 

Globally, retail AUM’s share of total AUM in 2017 was 39%, up from 37.5% in 2016, according to Boston Consulting Group (BCG). Among global institutional AUM, only the pension plan segment grew, to 14.5% of total AUM in 2017, from 14.2% of total AUM in 2016. 

In Singapore, traditional sector AUM gained 20% in 2017, whereas alternative sector AUM rose 17%, led by private equity (PE) and hedge fund managers, says the Monetary Authority of Singapore’s (MAS) 2017 Singapore Asset Management Survey. In 2017, 78% of total AUM was sourced from outside Singapore; 67% of total AUM was invested in Asia-Pacific, with investments in Asean countries accounting for 39% of AUM.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook