Global Capital Markets
Singapore Entices Fund Managers With New VCC Structure
An educational synopsis of Singapore’s new Variable Capital Company covering what is in scope and some of the critical success factors for widespread adoption.
March 2020
With assets under management across Asia Pacific expected to increase to US$29.6 trillion by 2025, Singapore’s new investment fund structure, the Variable Capital Company (VCC), is broadening its appeal throughout the region and even beyond.
Singapore aims to establish its place as a global financial center by supporting the entire fund management ecosystem. Like established offshore centers, Singapore offers not just incorporation, but access to the full suite of support services, including lawyers, accountants, fund administrators and custodians. Other key features of VCC include:
- Providing flexibility for shareholders entering and exiting the fund
- Allowing distributions from assets/capital, rather than just from profits
- Applicable across open- and closed-ended funds, long-only and hedge funds
- Set-up capability for a stand-alone or umbrella fund as a single legal entity
- Allowing the United States check-the-box election for tax treatment of foreign entities
