GlobalData Plc

Singapore no longer just a HNW hub

Goldman Sachs is the latest asset manager to expand out of Singapore’s institutional and private banking space, as the growing size of the country’s retail mutual fund market continues to attract international investment fund providers.

Goldman Sachs Asset Management has announced it will target 13 investment funds at the retail market in Singapore in Q1 2016. Previously these funds were available only to institutional and private banking clients. Singapore has been Goldman Sachs’ Southeast Asia operations hub for years, but the company had previously opted not to pursue local retail investors, preferring to service the ample HNW and institutional market.

However, the steady growth expected in Singapore’s retail investment market over the next five years makes it attractive for product providers. As per our Global Retail Investments Analytics, growth in the retail mutual fund market is forecast to surge in 2016 after a challenging 2015, and will surpass S$50bn in size for the first time. And with a respectable compound annual growth rate of 6.6% forecast for the next five years, Singapore will remain a good source of net inflows in the future.

As the retail market slowly diversifies and continues to grow in affluence, Singapore is becoming more than just a private banking and offshore financial center. Increasingly the business opportunity of the domestic retail investor base is proving a draw, and we expect to see more asset managers launch retail investment products over the next year.

By Andrew Haslip, Head of Content for Asia Pacific

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