ascentfundservices

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Ascent Fund Services

• We, Ascent Fund Services is experience and
  independent global fund Administrator dedicated
  to provide customized solutions to a wide range
  of asset managers. we provide all the
  Administrator services.
• www.ascentfundservices.com

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All you need to know about VCC Fund Administrator

• Singapore serves as the investment gateway to
  Asia with 67 of the total AUM invested in the
  Asia Pacific. In association with the Accounting
  and Corporate Regulatory Authority (ACRA), The
  Monetary Authority of Singapore (MAS) launched
  the much-needed Variable Capital Companies (VCC)
  framework on 15 January 2020. Here in this blog,
  you will get to know all about VCC, Venture
  Capital Fund Administrator, and the need.

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The need of Variable Capital Companies (VCC)

• The conventional structure of investment funds
  i.e., a corporate vehicle (Private Limited
  Company) or a partnership (Limited Partnership)
  scheme are less complex and easy to administer.
  But also has numerous limitations for running an
  asset management business in the long run. In
  these structures, the subscription and redemption
  of shares are complicated as the decision is
  completely dependent on the majority shareholders
  approval and not to a single shareholder.
• Whereas, In case of a partnership, it doesnt
  have a separate legal entity from the partners.
  In case the partner gets corrupt, the partnership
  wont be able to sue or be sued or own property
  in its own name.
• The Variable Capital Company structure is formed
  to overcome such barriers promoting operational
  flexibility and best of the returns to both the
  parties, the investors as well as the fund
  managers.

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Whats the VCC all about?

• The VCC structure can be used for open or
  closed-ended funds both giving the much-required
  flexibility. Flexibility in terms of issuance and
  redemption of shares to the partners.
• VCC also gives the flexibility to pay dividends
  out of capital
• The VCC fund administrators can set it up like an
  umbrella fund with various sub-fund schemes
• Underlying it with separate assets and
  liabilities or a standalone investment fund.
• VCC fund administrators can also help fund
  managers to transfer their registration of
  existing
• Investment funds from any other country to
  Singapore as VCCs.
• VCC fund administrator must create a register to
  be shared with the public authorities upon
  request for regulatory, supervisory and law
  enforcement purposes.

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Top Benefits of Singapore VCC fund investments

• 1. VCCs give the flexibility to the Investors to
  enter and exit the fund according to their will.
• 2. Lesser juggling between various mutual funds
  which means multiple fund administrators,
  managers and increased cost.
• 3. It enables you to tap on Singapores tax
  treaties as a legal entity for cross border
  investments
• 4. VCC gives the freedom to distribute dividends
  from the capital to meet dividend obligation
  which was unlikely in the conventional corporate
  vehicle.
• Conclusion
• Venture capital fund investors and fund managers
  both are directly benefited by the launch of VCC
  funds. To make its adoption easier, it is
  notified that MAS will help defray the cost of
  setting up the fund through the Variable Capital
  Companies Grant. Up to 70 of the eligible
  expenses such as legal and tax advice,
  incorporation and registration fees, capped at a
  total of SGD 150,000 will be reimbursed by MAS.
  Connect with the experts at ASCENT fund services
  to have a detailed discussion and understand how
  it could benefit you and your business.
• www.ascentfundservices.com