Singapore fund managers' assets hit $2.6 trillion in 2015: Survey

SINGAPORE - Fund managers in Singapore saw a 9 per cent increase in assets under management to S$2.6 trillion in 2015, buoyed by growth in the alternative asset sector, the city-state's central bank said on Wednesday.

Assets under management (AUM) at alternative asset managers grew 29 per cent to S$410 billion, while traditional asset managers saw their AUM increase by a more modest 4 per cent, the central bank said.

"These trends illustrate the crossroads facing the asset management industry: Interest rates, which have been low for several years, look likely to remain lower for longer," the Monetary Authority of Singapore (MAS) said in its annual survey of asset managers.

"As public market returns disappoint, more investors are seeking excess returns from illiquidity and credit risk premia in private markets. This has caused managers to search for new sources of value to deploy capital."

Within the alternative sector, private equity/venture capital AUM rose 47 per cent to S$136 billion, while real estate AUM grew 80 per cent to S$69 billion.

AUM of hedge fund managers grew by 11 per cent to S$119 billion, while real estate investment trust (REIT) managers saw their AUM expand by 7 per cent to S$85 billion, MAS said.

The 9 per cent growth in total assets managed by Singapore-based asset managers was slower than the pace recorded in 2014, when assets under management increased by 30 per cent.