The Monetary Authority of Singapore (MAS) conducted a survey of the Singapore fund management industry as at 31 December 2001. The survey covered financial institutions (FIs) that were permitted to conduct asset management activities in Singapore1. The survey covers analysis of both discretionary, as well as non-discretionary fund management activities.
1. ASSETS UNDER MANAGEMENT
1.1 Total assets under management (AUM) continued to grow steadily in the last year. As at end-2001, total assets managed by Singapore-based financial institutions was S$307.0 billion. This comprised S$180.7 billion of discretionary assets managed in Singapore and S$126.3 billion of non-discretionary assets2. This represents an increase of S$30.8 billion, or 11%, over the S$276.2 billion total AUM reported at end-2000. [See Chart 1]
1.2 Discretionary AUM in Singapore grew by 9% to S$166.4 billion as at end-2000 to S$180.70 billion as at end-2001. Total non-discretionary AUM increased by about 15% from S$109.8 billion as at end-2000 to S$126.3 billion at end-2001. The increase in the AUM figures can be attributed to the inflow of new funds in part due to fund managers increasing their allocations to Asia in 2001. Furthermore, the consolidation of the Asian investment operations of serveral global fund managers into Singapore has also led to the increase of funds inflow here.
2. SOURCES OF FUNDS - DISCRETIONARY AUM
2.1 The survey also revealed that of the S$180.7 billion of discretionary assets managed in Singapore, 29% was sourced domestically, representing a 28% growth in the amount sourced the preceding year. US and European clients were major foreign sources for discretionary assets managed in Singapore in 2001. [See Chart 2]
2.2 Chart 3 shows the total discretionary AUM distributed by type of clients. Institutional funds made up the bulk : 68% (2000 : 58%), followed by funds managed on behalf of collective investment schemes : 29% (2000 : 38%). Funds from individuals made up 3% of total funds. (2000 : 4%)
3. INVESTMENT OF FUNDS - DISCRETIONARY AUM
3.1 Discretionary AUM continued to be invested predominantly in equities which amounted to S$97.2 billion or 54% of total discretionary funds. The proportion of the funds invested in bonds, collective investment schemes and cash deposits / money markets has grown. [See Table 4.]
Table 4: Investment of Discretionary Funds - by Instrument
|
End-2000
|
End-2001
|
|
Amt ($B)
|
% Share
|
Amt ($B)
|
% Share
|
|
Equities
|
98.7
|
59%
|
97.2
|
54%
|
|
Bonds
|
30.9
|
19%
|
37.8
|
21%
|
|
Collective Investment Schemes
|
10.8
|
6%
|
14.9
|
8%
|
|
Cash, Deposits, Money Market Instruments
|
22.9
|
14%
|
27.8
|
15%
|
|
Other Investments
|
3.1
|
2%
|
3.0
|
2%
|
|
TOTAL
|
166.4
|
100%
|
180.7
|
100%
|
3.2 In terms of geographical allocation of investments, the bulk of the discretionary funds were invested in Asia, with 19% invested in Singapore, 9% invested in Japan and 48% invested in the rest of Asia Pacific. [See Chart 5]
3.3 Charts 6 and 7 indicates the breakdown of investments by region for Equity and Bond investments respectively.
4. PROFILE OF INDUSTRY PLAYERS
4.1 There has also been a significant rise in the number of investment professionals in the industry. The total number of investment professionals as at end-2001 has increased by 10% to a headcount of 1,114, comprising 816 fund managers and 298 investment analysts, compared with a total of 1,0103 as at end-2000. [See Chart 8]
4.2 As at end-2001, the majority of investment professionals in Singapore are equity specialists, with the rest of the professionals specialising largely in private equity / venture capital and fixed income investments. [See Chart 9]
5. THE UNIT TRUST INDUSTRY
5.1 As at end-2001, there were 32 unit trust managers managing a total of 319 unit trusts, compared to 31 managers managing 265 unit trusts at end-2000. Total unit trust assets increased by 35%, from S$7.8 billion at end-2000, to S$10.5 billion at end-2001. As in 2000, balanced funds and capital guaranteed / protected funds continue to be popular investment choices in 2001. Notably, the number of capital guaranteed / protected funds increased significantly to 39 funds amounting to a total AUM of S$1,782.3 million, at end-2001. [See Table 10]
Table 10 : Number and AUM of Unit Trusts - by Fund Type
|
Fund Type
|
No. of Unit Trusts
|
Total AUM
($M except where otherwise indicated)
|
|
End-2000
|
End-2001
|
End-2000
|
End-2001
|
|
Equity Funds
|
189
|
71%
|
206
|
65%
|
6,226
|
80%
|
6,200
|
59%
|
|
Bond Funds
|
26
|
10%
|
32
|
10%
|
709
|
9%
|
1,133
|
11%
|
|
Balance Funds
|
28
|
10%
|
27
|
8%
|
568
|
7%
|
986
|
9%
|
|
Money Market Funds
|
12
|
5%
|
15
|
5%
|
87
|
1%
|
423
|
4%
|
|
Capital Guaranteed/Protected Funds
|
10
|
4%
|
39
|
12%
|
253
|
3%
|
1,782
|
17%
|
|
TOTAL
|
265
|
100%
|
319
|
100%
|
7,843
|
100%
|
10,524
|
100%
|
5.2 Of the total 319 units, 155 were included under the CPF Investment Scheme (CPFIS) compared to 105 out of 265 unit trusts at end-2000. The share of the total AUM contributed by funds included under CPFIS has increased to 69% from 60% at end-2000. [See Table 11]
Table 11: Subscriptions and Redemptions of Unit Trusts (Amts in $M)
|
|
As at end-2000
|
As at end-2001
|
|
|
No.
|
AUM ($M)
|
No.
|
AUM ($M)
|
|
Unit Trusts included under CPFIS
|
105
|
4,705
|
155 (+47%)
|
7,289 (+55%)
|
|
Unit Trusts not included under CPFIS
|
160
|
3,138
|
164 (+3%)
|
3,235 (+3%)
|
|
TOTAL
|
265
|
7,843
|
319 (+20%)
|
10,524 (+34%)
|
5.3 In terms of geographical allocation, 45% of total unit trust asset were invested in Asia compared to 50% at end-2000. [See Chart 12]
Prepared by :
Financial Centre Development Department
Monetary Authority of Singapore
May 2002
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