Variable Capital Company (VCC)
Details
- Singapore equivalent to Cayman Fund or Luxembourg SICAV
- Dedicated fund vehicle for collective investment schemes
- Stand-alone or as an umbrella entity with multiple sub-funds that are permitted to operate different investment strategies
- Ring-fencing of assets and liabilities of sub-fund which is segregated from the VCC and other sub-funds of same VCC if under umbrella structure
- Traditional and alternative fund strategies, both open-ended and close-ended
Advantages
Singapore Domicile
Efficiently-regulated global financial centre with political stability, pro-business environment, excellent infrastructure,
international connectivity and a highly-skilled labour force
Tax Exemption
Designed to meet the conditions for tax exemption under Section 13R and 13X of the Income Tax Act
Tax Efficiency
Single corporate income tax return filed by the umbrella VCC only: Sub-Funds are not required to file in their own right
Confidentiality
Register of members of a VCC is not required to be open for inspection by the public nor are financial statements publicly available
Multiple Sub-Funds
Multiple sub-fund in open-ended and closed-ended format can operate within a single VCC entity
Flexibility
A VCC may freely issue and redeem its shares to service subscriptions, redemptions and other distributions
Cost Efficiencies
Umbrella structure permits sub-funds to share the same board of directors, and common service providers if this is desirable to the individual sub-fund
Investor-Friendly
VCC is permitted to prepare financial statements using international accounting standards such as IFRS and US GAAP, in addition to Singapore
Financial Reporting Standards (FRS)
To provide greater flexibility to international investors.