Sweet Songs of Singapore

May 11, 2011 James Heinsman Hedge Fund News

Singapore: New Popular Financial Environment

Singapore seems to be Asia’s new financial hubbub. Hedge funds are looking to the country that’s industry is fast developing, as well as expanding services for fund administration. It is also perhaps not too surprising that there has been such increased interest from investment and fund managers, as well as “global and indigenous hedge funds.” According to the Singapore’s Monetary Authority assistant MD Ng Nam Sin, these “add diversity to the broader asset management industry.”

Big Time Investors Hit Singapore

New to Singapore is Algebris Investments LLP and Fortress Investment Group LLC. The country is attractive to them as economically the region is “outpacing the world,” boasting “as many millionaires as Europe.” It looks like there will be more “allocations to alternative investments, including hedge funds to 8 percent of their portfolios this year, from 5 percent in 2009.”

According to MD of Man Investments, Asia in Hong Kong, Tim Rainsford, the actual entire region of Asia has already for a long while, been attractive as to investors. It is just now that hedge funds are catching on. He also said that in time, more and more business individuals will start seeing the region as “a place to establish themselves.” So again, it was probably hardly big news that John Brennan sought to open his equity hedge fund office there.

Singapore Success

Are there specific reasons though – about Singapore – that is making it so attractive in Asia? Well, yes, in a lot of ways. First, there are lower interest rates and higher yields. But according to Ng, “Asian governments will have to balance the benefits from capital inflows against the attendant financial stability risks that volatile capital flows can bring and implement appropriate responses.”

In addition, Singapore is working on making things even better for financiers, in one way by trying to “enhance the ecosystem for fund managers,” as well as advancing the services in the building fund administration and building up the “city-state as a domicile center.”

Algebris Investments LLP, Asia, Fortress Investment Group LLC, John Brennan, Man Investments,

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