The VCC was launched as a new corporate structure that aims to overcome these constraints by allowing greater operational flexibility. This can bring cost savings to both investors and fund managers in the long run.
The idea of a comprehensive and robust investment funds framework was first floated in 2016. Public consultations were led by MAS, and implementation of the VCC framework was soon underway. It officially launched on 15 January 2020.
The VCC's aim is to position Singapore as a leading fund domiciliation hub. It also helps Singapore to catch up with market leaders, following the launch of the Asia Region Funds Passport scheme as well as the European Union's successful funds passporting scheme, known as the Undertakings for Collective Investments in Transferable Securities (UCITS).
What's the VCC all about?
Catering to a wide range of investment strategies (traditional and alternative) and structures, the VCC can be used for either open- or close-ended funds. It also allows a variable capital shareholding structure.
It can be set up as a standalone investment fund or structured as an umbrella fund with underlying sub-funds, thus holding segregated and protected portfolios.
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Originally published July 15, 2020.
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