VCCs to boost Singapore's Asia fund gateway status

Singapore

SINGAPORE is set to boost its position as a global centre for wealth management with the launch of Variable Capital Companies (VCC). The new fund structure will create more opportunities for Singapore's asset management industry as well as enhance the city's role as an important Asia gateway for fund managers and investors.

According to the Monetary Authority of Singapore (MAS)'s 2018 Singapore Asset Management Survey, the nation's fund industry has gone from strength to strength with close to S$3.4 trillion of assets held by Singapore-based managers. However, 75 per cent of these funds were sourced from outside Singapore. The VCC structure will change that by attracting more assets to Singapore, giving global investors increased flexibility and broadening the type of investment strategies that can be managed from the city.