Assets under management (AUM) in the asset and wealth management industry in Hong Kong were HK$23.95 trillion ($3.06 trillion) at the end of December 2018, with HK$783bn in net inflows.

The findings are from a report by the Securities and Futures Commission (SFC), which evaluated 854 firms including 747 licensed corporations (LCs), 45 registered institutions (RIs), 35 insurance firms as well as 27 trustees.

The report revealed that the adjusted AUM in Hong Kong’s asset and wealth management sector was HK$23.04 trillion as of 31 December 2018.

The figure excludes assets held under trusts and marks a 5% fall from the previous year.

Notably, 62% of the AUM in asset and wealth management was found to have been contributed by non-Hong Kong investors.

The employee headcount in the asset and wealth management business was 42,821, with a growing number of employees outside of sales and marketing operations.

In the asset management and fund advisory business carried out by LCs and RIs, AUM of HK$16.45 trillion was 6% lower than the previous year.

In the private banking and private wealth management business, AUM dropped 2% to HK$7.62 trillion on a year-on-year basis.

Assets held under trusts were HK$4.33 trillion.

SFC CEO Ashley Alder said: “The latest survey shows the underlying strengths of the asset and wealth management industry in a challenging global market environment in 2018.

“We will continue to pursue initiatives to further develop Hong Kong as a premier global asset and wealth management centre.”