Singapore launches new fund framework to bolster finance industry

A view of Singapore's financial district - AFP 

SINGAPORE (Reuters): Singapore launched a new corporate structure for investment funds with 20 so-called Variable Capital Companies (VCC) yesterday, a scheme designed to attract more funds to base themselves in the Asian city-state.

The new framework will give fund managers greater flexibility in share issuance and dividend payment, and allow them to set up multiple funds in a single VCC to reduce costs, the Monetary Authority of Singapore and companies regulator ACRA said in a joint statement.

The VCCs launched yesterday include venture capital, private equity and hedge funds, while authorities also unveiled a grant scheme to encourage more such funds to locate in Singapore.

Months of anti-Government protests in rival Asian finance hub Hong Kong have increased Singapore’s allure, with some wealth managers scrapping plans to open offices in the Chinese-ruled city in favour of the Southeast Asian nation.

Singapore’s Central Bank has warned wealth managers not to aggressively court business from Hong Kong.