Amid the years of rising geopolitical tensions, the steady growth of Singapore’s financial services industry has shown investors that this is a sector where they can take a long-term view, says Chee Hong Tat, minister for transport, and second minister for finance.
Within the overall financial services sector, the wealth management segment grew as well, says Chee, who wears another hat as the deputy chairman of the Monetary Authority of Singapore.
"This is an area where MAS wants to continue to work closely with the industry and see how we can grow it further," says Chee, speaking at a forum organised by UBS, the world's largest wealth manager.
"We want to see how we offer more variety of investment options, including for people who want to put their wealth here," he says.
Singapore in 2023 has a total asset under management of some $5.4 trillion, up 10% over the previous year.
Within this lot, the AUM of traditional asset classes increased by 7% but that of so-called alternatives — hedge funds, private equity and real estate — increased by a slightly faster pace of 8%.
See also: ‘60/40’ is not a ‘bad thing’ for investors while Gupta’s retirement is ‘best thing’ for DBS shares
Presumably, the total AUM will increase further thanks to the growing ranks of single family offices setting up shop here, reaching more than 2,000 now, up from around 1,400 as at end of 2023.
In its most recent 3QFY2024, the wealth management unit of UBS manages invested assets, or client money, of some US$4.26 trillion ($5.84 trillion), up 16% y-o-y — that is more than Singapore’s AUM as a whole.
See also: W Capital Markets' valuation doubles to $42 mil with new fundraise
UBS, similarly, recognises that the environment today is full of uncertainties and risks. Headlines are dominated by US threatening to impose tariffs or the slowdown in China, observes Iqbal Khan, co-president of UBS Global Wealth Management and president of UBS Asia Pacific.
Amid this fluidity, UBS says it is committed to maintaining its financial and operational stability so as to deliver its commitment to deliver unbiased investment advice to clients of the world's largest wealth manager.
"We take our fiduciary duty towards you very, very seriously," says Khan, speaking at the same forum.
Khan adds that UBS is able to deliver sustainable and impactful outcomes its clients thanks to the scale that it now commands following the merger with Credit Suisse, which makes it the largest wealth manager not just in Asia but also the world.
He stresses the importance of maintaining a balanced portfolio and a certain level of diversification.
"If you had a regional bias last year, your investment portfolio would not have done well in relative terms, because you missed out on a phenomenal rally in the US," he points out.
