Singapore Asset Management Industry Grew 35% in 2003
Singapore, 17 June 2004...Total Assets Under Management (AUM) in Singapore grew strongly, up 35% from last year, according to the 2003 Asset Management survey conducted by the Monetary Authority of Singapore (MAS).
2 The survey results show that Singapore-based financial institutions managed a total of S$465.2 billion at end-2003, a 35% year-on-year increase over the total AUM of S$343.8 billion at end-2002. Discretionary1 AUM increased 39% to S$254.6 billion in 2003, while total non-discretionary AUM grew 31% to S$210.6 billion.
3 Mr Ng Nam Sin, Executive Director of MAS' Financial Centre Development Department, said, "The good performance of the asset management industry can be attributed to renewed investor interest in Asia, centralisation of regional portfolio management in Singapore and market appreciation. Moving forward, we will continue to build on our strengths to make the environment even more conducive for fund managers to operate in Singapore."
4 70% of discretionary assets managed here was sourced from other countries, mainly the US and Europe. Funds sourced from Singapore grew 39% to S$77.2 billion reflecting increased domestic demand for professional asset management services.
5 The asset management industry has continued to attract more new investment products. This year's survey showed increased investments in alternative investments, structured products, commodities and derivatives.
1 Discretionary assets under management give fund managers the ability to decide when to buy/sell securities at the best possible price for the customer. Some discretionary orders place restrictive terms to limit the amount of discretion the broker has.