Hedge-fund sector: Singapore's success story set to continue

THE competitiveness of the hedge-fund sector in Singapore recently attracted some comment that surprised me. Some observers have begun to question whether Singapore, after years of strong growth, is at this time an attractive place to set up a hedge-fund business. Yet to suggest the city-state is less competitive runs counter to a lot of evidence as well as the views and experiences of most local practitioners I meet.

Official data on the size and growth of the hedge-fund industry in Singapore points to a sector in robust health. Assets managed locally reached US$33.3 billion at the end of 2014, up from US$31.5 billion in 2013 and US$20.3 billion in 2012, according to HedgeFund Intelligence (HFI). Eurekahedge says there were 289 funds managing money from Singapore as at June this year, a number that has grown steadily since 2010, when there were 253 funds. New launch activity remains healthy; HFI says there were 11 new fund launches in Singapore in the second half of 2014 and six in the first half of 2015, with a combined AUM (assets under management) of some US$4.6 billion.

The growth of membership of the Alternative Investment Management Association (Aima) in Singapore provides further signs of the healthy state of the local industry. There are a little over 100 firms in Singapore that count themselves as Aima members today, up by more than 40 per cent in the last 18 months. We are organising more events in Singapore than ever - 10 in the first half of 2015 versus seven in the same period last year - with an aggregate attendance of some 500 delegates during the first half.