Net inflows rebounded 50% to S$290 billion, driving growth alongside strong market performance, per MAS surveys.

AUM Growth and Key Drivers

Singapore's assets under management crossed the S$6 trillion threshold for the first time in 2024, driven by a 12.2% year-on-year increase to S$6.07 trillion, supported by robust market performance and a 50% rebound in net inflows. According to the Monetary Authority of Singapore's (MAS) Annual Report for FY2024/2025 and the 2024 Singapore Asset Management Survey, the industry grew from S$5.41 trillion in 2023, surpassing the symbolic S$6 trillion mark for the first time. Net inflows surged 50% year-on-year to S$290 billion, as fundraising activities recovered amid improving investment sentiment from the previous year's subdued environment. The growth outpaced the global average, marking a recovery from the 2023 fundraising trough, per industry commentary reported by Yahoo Finance.

MAS Managing Director Chia Der Jiun, speaking at the Annual Report media conference on 15 July 2025, confirmed that AUM growth was driven by both traditional and alternative sectors, noting that the milestone reflected Singapore's continued strength as a global asset management hub.

AUM (S$ trillion) (S$ trillion)Source: Orionmano Industries

Traditional and Alternative Sector Performance

Asset class performance was broadly positive, with both traditional and alternative segments recording double-digit gains. Traditional AUM increased 16% year-on-year, while alternatives grew 14%, per MAS survey data cited by Kenny Quek on LinkedIn. Within alternatives, private equity, venture capital, and hedge funds led the expansion. Notably, private credit allocations rose 21%, reflecting strong investor demand for direct lending strategies in Asia, according to Reed Smith's Asia-Pacific funds and financial regulatory newsletter.

However, not all alternative segments performed uniformly. REIT and real estate AUM declined during the year, partially offsetting gains in other alternative sub-sectors, per the same Reed Smith analysis. This divergence underscores the selective nature of capital allocation within Singapore's alternatives ecosystem, where higher-return private credit and venture strategies attracted inflows while rate-sensitive real estate assets faced headwinds.

The MAS survey reported that private equity and venture capital AUM stood at approximately S$789 billion, hedge fund AUM at S$327 billion, REIT AUM at S$115 billion, and real estate AUM at S$168 billion as of end-2024, per Caproasia's breakdown of the survey data. Collective investment schemes (CIS) AUM reached S$191 billion.

Fund Management Ecosystem and Structural Developments

The fund management ecosystem in Singapore continues to deepen. The number of licensed and registered fund management companies rose to 1,298 as of end-2024, up from 1,250 in 2023, reflecting sustained interest from global and regional managers, per Yahoo Finance. MAS reported that Singapore saw continued interest from private equity and hedge fund managers seeking to establish offices to tap regional opportunities.

Singapore's Variable Capital Companies (VCC) framework, introduced in 2020 to enhance fund structuring flexibility, reached 1,200 entities comprising 2,695 sub-funds as of end-2024, managed by 628 regulated fund management companies, per Reed Smith and Yahoo Finance. By VCC fund strategy, private equity and venture capital accounted for 40% of sub-funds, external asset managers and multi-family offices 22%, hedge funds 19%, traditional strategies 15%, and real estate 4%, according to Caproasia's analysis.

The retail investment segment also expanded significantly. Authorised and recognised collective investment schemes grew 31% to S$191 billion, indicating broadening retail participation in professionally managed funds.

ESG integration has deepened meaningfully. Monies managed with an ESG overlay constituted 48% of total AUM among Singapore-based managers, a substantial share that reflects both investor demand and regulatory encouragement, per Reed Smith. MAS Managing Director Chia Der Jiun, during the Annual Report media conference, reiterated Singapore's commitment to sustainable finance, noting that the jurisdiction remains ASEAN's largest market for green, social, sustainable, and sustainability-linked bonds and loans. Sustainable finance loans originated from Singapore reached a new high of over S$48 billion in 2024.

International Orientation and Source of Funds

Singapore's asset management industry remains deeply internationally oriented. According to the MAS survey, 77% of AUM was sourced from outside Singapore, and 88% of total AUM was invested internationally, reaffirming the city-state's role as a gateway for capital allocation across Asia and global markets, per Reed Smith and Yahoo Finance. Discretionary mandates continued to account for more than half of total AUM, reflecting sustained confidence by institutional investors in Singapore-based fund managers' capabilities.

By source region, Singapore contributed 23% of total AUM, Asia-Pacific excluding Singapore 33%, North America 19%, Europe 12%, and rest of world 13%, according to Caproasia's breakdown of the MAS survey data. This distribution underscores that while Singapore is itself a significant capital source, the bulk of assets originate from the broader Asia-Pacific region, with North America and Europe also contributing substantial shares.

% of total AUMSource: Orionmano Industries

Looking ahead, Singapore's asset management industry is expected to continue benefiting from global fund managers seeking regional hubs for Asia-focused strategies. The expansion of the VCC framework, deepening ESG integration, and growing private credit and alternative allocations provide structural tailwinds. MAS's continued focus on regulatory enhancements and anti-money laundering frameworks, as emphasised by Chia Der Jiun, indicates a dual commitment to market integrity and sustainable growth. The combination of robust inflows, an expanding manager ecosystem, and deepening international connectivity positions Singapore to maintain its trajectory as a leading global asset management hub.