* Global AUM fell by 10% in 2022 amid challenging environment

* AUM growth in 2023 is expected to remain cautious - MAS

* Singapore's net inflow of funds in 2022 held steady

SINGAPORE, Nov 2 (Reuters) - Singapore's asset management industry fell 10% to S$4.9 trillion ($3.59 trillion) in 2022 compared to a year earlier, as lower valuations offset healthy net inflows into the Asian wealth hub.

The decline comes against the backdrop of a challenging environment for global investors, with global asset under management (AUM) falling by 10% in the same year, the Monetary Authority of Singapore (MAS) said on Thursday.

"Looking ahead, AUM growth in 2023 is expected to remain cautious as headwinds arising from geopolitical tensions and conflicts, market uncertainties and supply chain disruptions continue to weigh down on valuations and investor sentiments," the central bank said in its annual report on the sector.

Despite the challenging market environment, Singapore's net inflow of funds in 2022 was similar to 2021 at S$435 billion, according to the MAS.

The city-state remains a key gateway for global asset managers and investors to tap the region's growth opportunities, MAS said.

The central bank said 76% of AUM were sourced from outside Singapore, and 88% of total AUM invested outside the country. Within Asia Pacific, 20% of AUM was invested in Southeast Asia, it added.

Private equity and venture capital's growth moderated to 0.3% year-on-year and reported a total combined dry powder of S$95 billion, according to MAS.

Hedge fund assets also held steady as global hedge fund managers set up presence in Singapore to grow their businesses.

Singapore has benefitted from strong inflows of wealth amid global uncertainty, with its relative political stability, low taxes, and policies favourable for setting up funds the main drawcards.

The number of licensed and registered fund management companies in Singapore rose to 1,194 as at December 2022 from 1,108 the same period a year earlier, according to the MAS.

The launch of a corporate structure called variable capital companies (VCC) in Singapore in 2020 has attracted a wide spectrum of asset managers including multi-family offices, hedge funds, private equity and venture capital.

The MAS survey said a total of 969 VCCs had been set up or re-domiciled in Singapore to date. This is higher than over 660 VCCs as of October 14 last year. ($1 = 1.3641 Singapore dollars) (Reporting by Yantoultra Ngui and Chen Lin; editing by Miral Fahmy)