Both of Asia’s financial hubs yesterday reported record numbers of assets under management.
The Securities and Futures Commission in Hong Kong released its annual Fund Management Activities Survey (FMAS), which showed that the combined fund management business in Hong Kong sustained another year-on-year increase to reach a record high of $17,682 billion, up 10.5%, as of the end of 2014.
In Singapore the Monetary Authority of Singapore announced that assets under management rose 30 per cent to S$2.36 trillion last year, from S$1.82 trillion in 2013, the MAS said. “Allocation to Asia-Pacific investments accounted for two-thirds of total AUM, reflecting continued global investor interest in the region.”
The Hong Kong findings indicate that the city remained a preferred platform for international investors, who contributed an historic high of $12,404 billion and accounted for 71% of the fund management business. Assets managed in Hong Kong increased by nearly 18% to a record level of $6,856 billion.
“The latest survey underscored the trend of sustained growth in assets managed in Hong Kong, driven by our role as an intermediary for capital between the Mainland financial markets and the rest of the world,” said Ms Julia Leung, the SFC’s Executive Director of Investment Products. “The launch of the Mainland-Hong Kong Mutual Recognition of Funds scheme on 1 July will further encourage growth in this area and promote Hong Kong as a fund domicile and investment management centre.”
All market players recorded strong performance during 2014.
The aggregate business of licensed asset management and fund advisory corporations amounted to $12,920 billion at the end of the year, up 9.6% and once again representing the largest proportion of the combined asset management business.
Registered institutions recorded an 11.6% increase in their aggregate asset management and other private banking businesses, which reached $4,104 billion.
Insurance companies reported a 24.2% increase in their assets under management to $452 billion.
Non-REIT (real estate investment trust) asset management business increased by 11.9% to $12,770 billion, of which $6,856 billion (or 53.7%) was managed in Hong Kong.
72.5% of the assets managed in Hong Kong were invested in Asia.
Other private banking business increased by 12.5% to $3,095 billion.
Meanwhile in Singapore growth in the financial services sector outperformed the overall economy last year at 7.7 per cent versus 2.9 per cent for overall GDP growth.
The number of fund management companies in Singapore increased to 335 at the end of March 2015, up from 289 in 2014 and funds managed in the city rose by more than a quarter, the Monetary Authority of Singapore said.
The MAS also observed that Singapore has proven itself as the second-largest global off-shore RMB centre. RMB deposits grew by almost 20 per cent to reach 257 billion yuan in the year to March.
