funds and hedge fund managers are an increasingly
important segment of our asset management industry.
The number of hedge fund managers grew by 51% to
109 in 2005. Correspondingly, hedge funds assets
under management more than doubled year-on-year
to US$6.1 billion.
Singapore-based hedge fund managers employ a
multitude of investment strategies, including
equity long-short, distressed debt, convertible
arbitrage and multi-strategy. In terms of geographical
coverage, these hedge fund managers range from
pan-Asian to global in focus.
With the continued growth of the hedge funds
industry in Singapore, we conducted a survey
covering all banks and merchant banks to determine
the Singapore banking sector’s exposure
to hedge funds. The survey showed that, as at
May 2005, the banking industry did not have significant
exposure to the hedge funds industry.
Most of the hedge fund managers operating in
Singapore restrict their fund management activities
to not more than 30 qualified investors and are
therefore exempted from licensing. Effective
July 2005, exempt fund managers and their key
officers are required to comply with the Guidelines
on Fit and Proper Criteria, and report the size
of assets under management and whether they are
managing hedge funds.
MAS will continue to monitor international developments
in the hedge fund industry and fine-tune our
regulatory approach in Singapore in consultation
with market participants.