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Funds under management grows to S$1.82t

SINGAPORE'S fund industry last year grew assets under management (AUM) 11.8 per cent to S$1.82 trillion, up from S$1.63 trillion in 2012, the Monetary Authority of Singapore (MAS) said yesterday.

The asset management industry continued to gain in size and diversity, the MAS said in its 2013-2014 annual report.

Expansion came from various sub-sectors, including traditional and alternative managers like hedge funds and private equity players, insurers and wealth managers.

The report said: "The Asia-Pacific region continues to be a key investment destination for global investors with longer-term investment horizons, both within and outside Asia."

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Allocation to the Asia-Pacific accounted for 67 per cent of total AUM last year.

The number of registered fund management companies rose to 236 in 2013 from 74 in 2012.

Registration of fund management companies started under an enhanced regulatory regime, which came into effect in August 2012.

The corporate debt market, comprising SGD and non-SGD debt, registered an 18 per cent year-on-year growth in 2013 to S$272 billion.

SGD-denominated corporate debt outstanding rose by 9 per cent to S$119 billion; non-SGD debt outstanding increased by 26 per cent to S$153 billion.

Foreign issuers accounted for 15 per cent of SGD bond issuances.

Singapore's renminbi market also grew strongly during the year.

Renminbi clearing arrangements by the Industrial and Commercial Bank of China (ICBC) Singapore branch in May 2013 helped spur the issuance of 7.5 billion renminbi (S$1.5 billion) of Lion City Bonds up to March 2014.

"The use of RMB has gained traction among companies in Singapore and the region," it said.

From March 2013 to March 2014, total renminbi deposits rose 91 per cent to 220 billion renminbi, RMB trade financing grew by 60 per cent to 397 billion renminbi and the average daily traded volume for RMB FX in Singapore grew by 415 per cent to US$67 billion.