Business

Singapore's AUM up 7% 
to $2.7 trillion last year

Assets under management (AUM) expanded here last year on the back of a global recovery in the wealth management industry.

Total assets managed by locally based managers grew 7 per cent to $2.7 trillion last year, said the Monetary Authority of Singapore (MAS) yesterday in its annual industry survey.

IMPROVEMENTS

Sustained net fund inflows and broad-based improvements in market valuations supported the growth, it added.

The increase was under the 9 per cent rise in AUM in 2015.

Last year, alternative AUM grew 17 per cent in line with global trends.

Alternative assets, which include venture capital, hedge funds and private equity funds, cater to institutional and ultra-wealthy clients.

On the other hand, traditional AUM grew a modest 3 per cent.

The global asset management industry recovered last year, with AUM up 7 per cent to US$69 trillion (S$93.45 trillion), compared with 1 per cent in 2015.

A good part of this was down to valuations being boosted on the back of strong gains in the equity markets, the MAS said.

Passive funds and alternative assets continued the trend of growing faster than traditional assets, with passive funds expanding at 14 per cent and alternative ones at 9 per cent. - THE STRAITS TIMES

FinanceWealthMonetary Authority of Singapore