Majority Of Singapore Asset Managers Invest In Asia-Pacific - Study

Vanessa Doctor

23 August 2013

Asia-Pacific remains to be the key investment destination for Singapore-based asset managers, accounting for 70 per cent of the total assets under management recorded as at 31 December 2012, says the .

In the recently released, "2012 Singapore Asset Management Industry Survey," the 70 per cent is an increase from 60 per cent in 2011, reflecting strong investor interest in the region. Other key destinations identified were Europe, up from 8 per cent to 10 per cent, and the U.S., up from 8 per cent to 9 per cent.

By the end of 2012, total assets managed by Singapore-based asset managers had gone up 21.5 per cent from the previous year to S$1.63 trillion ($1.03 trillion). This represents a five-year average AuM growth rate of 9 per cent per annum.

Around 80 per cent of the total AuM was sourced from outside the city-state. In 2012, equities were the most preferred asset classes, accounting for 44 per cent of the total, followed by bonds, 23 per cent, alternatives 12 per cent, cash and money markets, 12 per cent, and then by collective investment schemes, 9 per cent.

Given the rise in demand, the number of investment professionals on ground also rose 8.5 per cent to reach 3,312 in 2012, led by portfolio managers, then by investment analysts, traders and asset allocators and economists.

There are various industry players in Singapore, says the report, but 20 of the largest asset management companies with local operations accounted for 37 per cent of the total AuM for the year. In 2012, the industry has seen more hedge funds and private equity players setting up.

The findings were based on the responses of 746 participants in the banking, finance and treasury, capital markets, financial advisory, insurance services.