Singapore's total asset under management suffered a 10% drop to $4.9 trillion in 2022 over 2021, as inflows were not enough to offset the decline in asset values.
This is a contrast to the growth of 16.4% between 2020 and 2021.
While Singapore's AUM has been generally on an uptrend over the years, there had been occasional dips. Prior to 2022, the most recent was in 2011 when AUM dipped 1% y-o-y and in 2008, there was a decline of 36% y-o-y with the Global Financial Crisis raging on.
Over the most recent five-year period, the AUM was up at a CAGR of 8.5%.
According to the Monetary Authority of Singapore, net inflows last year held steady versus 2021's $435 billion.
However, the value of assets dropped in line with the global markets, with MAS noting that worldwide AUM was down 10% in 2022 as well.
See also: Banks in Singapore can withstand multiple shocks: MAS
MAS notes that Singapore saw continued interest from global and regional asset managers seeking to establish offices here to tap regional opportunities.
The number of licensed and registered fund management companies in Singapore increased from 1,108 as at December 2021 to 1,194 as at December 2022.
Going foward, AUM growth for this year is "expected to remain cautious" as headwinds arising from geopolitical tensions and conflicts, market uncertainties and supply chain disruptions continue to weigh down on valuations and investor sentiments.
"Interest from global asset managers and sophisticated asset owners seeking to set up an office in Singapore remains strong, given the asset management eco-system," says MAS.
