Singapore's new fund structure- Variable Capital Company ("VCC")

Singapore’s new fund vehicle structure- Variable Capital Company (VCC) is in its take-off phase. This is evident from the mention of “VCC Pilot Programme” by Minister Indranee Rajah in her VCC note dated 24th September 2019, which enables permissible fund managers (ie Singapore Fund Managers) to participate in the pilot programme by signing up for it on or before 1 October 2019. Upon this announcement, several overseas asset allocators, LPs (including Fund Managers from Europe, Australia) have expressed keen interest to establish VCC structure in Singapore. This will be done in collaboration with Singapore based licenced fund managers. There are overseas asset allocators too looking to have investment exposure in emerging markets like India, wanting to use Singapore’s VCC as the fund vehicle. The main reasons cited for the above are Singapore’s stable regulatory environment and, a strong conviction that VCC will get recognised by regulators across various investment destinations, globally. Upon the VCC’s regulatory procedures and forms becoming publicly available, many such interested players will take active steps to join the VCC bandwagon.

Benoy Philip, Singapore CA, Email: [email protected], Mobile (Singapore): 97324774