A downturn in financial markets caused Singapore’s assets under management to decrease in 2022, according to a report by the city-state’s regulator.
Assets under management (AUM) in Singapore fell 10 percent to S$4.9 trillion ($3.6 trillion) in 2022, according to a report by the local regulator. This was driven by decreased asset valuation as the city-state posted net inflows of S$435 billion, down from S$448 billion in 2021.
Traditional investments fell 20 percent while alternative investments fell 20 percent. Within alternatives, real estate investment trusts decreased 36 percent to S$120 billion and property decreased 16 percent to S$174 billion. In contrast, hedge funds increased 1 percent to S$227 billion while private equity and venture capital climbed 0.3 percent to S$587 billion.
In terms of the source of funds, 24 percent was from Singapore and 76 percent was from foreign countries with the rest of Asia (32 percent) being the leader, followed by North America (19 percent) and Europe (15 percent).
Fund Management Companies
The report also noted that Singapore continues to attract interest from global and regional asset managers. At the end of 2022, there were 1,194 licensed and registered fund management companies, up from 1,108 in 2021.
«Looking ahead, AUM growth in 2023 is expected to remain cautious as headwinds arising from geopolitical tensions and conflicts, market uncertainties and supply chain disruptions continue to weigh down on valuations and investor sentiments,» MAS added.
