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The
framework gives fund managers more flexibility in share issuance
and dividend payment, and allows them to set up multiple funds
in a single VCC to reduce costs.
VCCs can be used to set up a corporate structure for a
stand-alone fund or for an umbrella fund with multiple
sub-funds. They can be used for both traditional and alternative
investment funds. Hong Kong also provides a similar structure.
About 300 Singapore-based global and regional asset managers had
incorporated or re-domiciled more than 400 of these companies by
mid-October, the Monetary Authority of Singapore (MAS) said in
an asset management survey.
The new fund vehicle was launched with 20 VCCs in January 2020.
Singapore also provides a grant to encourage more such funds to
locate to the country.
MAS is studying possible enhancements to the framework,
including facilitating the conversion of existing investment
fund structures, and allowing a wider range of entities to set
up and manage a VCC, it said in the survey.
Assets under management in Singapore rose 17% in 2020 to reach
S$4.7 trillion ($3.5 trillion) from the year ago, driven by net
inflows of funds and valuation gains, the central bank survey
showed.
The VCC structure has proved popular across a wide spectrum of
asset managers, including family offices, hedge funds and
private equity. Singapore's allure has also been growing amid
political uncertainty in rival hub Hong Kong.
(Reporting by Aradhana Aravindan in Singapore; Editing by
Sanjeev Miglani)
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