VCC is a combination of a legal entity and a fund structure and can be used for mutual funds, hedge funds and private equity or real estate funds. Under the VCC structure, several collective investment schemes can be established as a standalone or umbrella entity with sub-funds. The later provides substantial cost savings since the sub-funds can share costs incurred setting up and maintain the entities, including the same administrative agent, auditor, fund manager, as well as custodian. The launch of Singapore VCC has significantly enhanced flexibility in issuance and redemption of shares and safeguards with segregation of assets and liabilities.
The Monetary Authority of Singapore (MAS) has introduced a subsidy to defray the costs involved in in incorporating or registering a VCC, by co-funding up to 70% of eligible expenses paid to Singapore-based service providers for fund set up, with a total cap of S$450,000.
The process of setting up a Variable Capital Company (VCC)
With specialist teams in variable aspects , we provide a full range of VCC application services to give our clients clear visibility and confidence in the performance of their investment.