Monetary Authority of Singapore has revealed that 120 VCCs (Variable Capital Companies) have been incorporated with ACRA (Accounting and Corporate Regulatory Authority) in the eight months since the launch of the new framework. The VCC framework was launched in January, providing a new corporate structure that can be used for a wide range of investment funds and provides fund managers greater operational flexibility and cost savings. The framework was designed to attract more fund managers to domicile in Singapore and enhance its value as an international fund management center. MAS has introduced a VCC Grant Scheme, valid until 15 January 2023, to co-fund up to 70 percent of qualifying expenses relating to the set-up of the VCC. According to the latest annual survey of asset managers published by MAS, funds in Singapore saw assets under management reach a total of about SGD 4 trillion in 2019, representing growth of 15.7 percent year-over-year, which far exceeds the 5.4 percent increase seen in the previous survey.
Singapore continues to serve as the Global-Asia Pacific gateway for asset managers and investors. As the asset management landscape evolves, it is important that managers continue to invest and position themselves in evolving growth areas such as sustainable investments, private markets and solutions-based strategies, while leveraging technology and innovation as an enabler. Within the pool of survey respondents, asset managers in Singapore have continued to accelerate their ESG adoption, with 40 percent of assets managed incorporating ESG considerations. UOB Asset Management and Fullerton Fund Management were highlighted for having taken “meaningful steps” in 2019 to expand their ESG teams and deepen capabilities in ESG investments, disclosure and stewardship.