Funds managed in Singapore-based reached an all-time high at the end of 2012 of S$1.63 trillion (US$1.29 trillion), up 22% over the same period a year earlier, putting the city state closer to matching Switzerland as a wealth management hub, according to a report published by Monetary Authority of Singapore (MAS).
According to the Swiss Bankers Association, there were CHF2.8 trillion (US$2.9 trillion) of assets under management in Switzerland last year.
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Of this amount, around 80% of the assets sourced from outside Singapore, according to Ravi Menon, the managing director of the MAS.
Asia was the biggest destination for investments from funds handled out of Singapore, accounting for 70% of all assets under management, up from 60% a year ago.
Also, assets managed by hedge funds rose almost 8% to US$77.5 billion compared to the year ago period.
Earlier this month, a PwC report predicted that Singapore will overtake Switzerland as the world’s top centre for managing international funds by 2015.
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By GlobalDataThe PwC report cited global tax crackdown and tighter regulation as major reasons behind weakening of Switzerland’s appeal to global investors.
In the past 18 months, Singapore has also started tightening rules aimed at preventing tax evasion, amid moves by Group of 20 countries to clamp down on illicit funds and the growth of tax havens.
In late last month, Singapore also joined a controversial American law FATCA aimed at uncovering the secret financial assets of US taxpayers after the city state was criticised on the international stage.
