Alternative assets under management, such as in hedge funds and private equity, grew by 17 per cent, matching global trends.

Total assets managed by Singapore-based-based investment houses rose 7 per cent year-on-year to S$2.7 trillion last year, according to Monetary Authority of Singapore figures.

Alternative assets under management, such as in hedge funds and private equity, grew by 17 per cent, matching global trends. By contrast, funds held in traditional areas such as listed equities and bonds rose by 3 per cent, MAS said.

The global asset management industry recovered in 2016, with AuM up by 7 per cent to $69 trillion compared to 1 per cent in 2015, the report said. MAS noted that passive funds - those not seeking to actively beat a benchmark - fared well in 2016, a trend seen around the world.