Singapore's Asset Management Industry Thrives with 10% Growth in 2023, Reaching S$5.4 Trillion AUM, says MAS
- Protege Fund Services
- Jul 25, 2024
- 2 min read
Updated: Apr 20
First Published by Hubbis on Jul 23, 2024
Singapore reportedly saw a significant increase in its assets under management (AUM) in 2023.
The Monetary Authority of Singapore (MAS) reported a 10% growth, bringing the total AUM to S$5.4 trillion (US$4.1 trillion). This surge outpaced the overall Asia AUM growth of 8%, driven by gains in global bonds and equities following a challenging 2022.
A key gateway for global asset managers, Singapore sourced 77% of its AUM from international investors, with 89% of the funds invested outside the country. Discretionary AUM accounted for more than half of the total, emphasizing Singapore's role as a strategic base for investment decision-making.
Despite global market volatility, Singapore achieved positive net inflows, although lower than previous years. Alternative assets rebounded, particularly in private equity, venture capital, and hedge funds, while real estate investments faced a slight decline due to higher financing costs.
The traditional retail segment also showed robust growth, with Authorised and Recognised Collective Investment Schemes reaching an aggregate of S$146 billion, a 15% increase from the previous year. The number of licensed and registered fund management companies rose to 1,250 by the end of 2023, highlighting continued interest from global and regional asset managers.
ESG investments remained a focal point, with 51% of total AUM managed with ESG strategies. The incorporation of 1,029 Variable Capital Companies (VCCs), representing 2,158 sub-funds managed by 565 regulated fund management companies, underscored the sector's dynamism.
Looking ahead, Singapore's asset management industry is poised for further growth, supported by a resilient global AUM outlook, the development of the ETF ecosystem, and the expansion of private credit capabilities. The MAS continues to bolster Singapore's position as a premier asset management center, fostering growth opportunities amidst global challenges.
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