While many asset managers have offices in Singapore, most of their funds are still registered in offshore jurisdictions/Bloombergby Bloomberg
Singapore has introduced a new law which makes it easier for investment firms to register funds locally, as the city-state strives to increase its allure as a financial hub.
The Variable Capital Companies Act encourages asset managers to domicile their funds in Singapore by allowing the creation of a single structure to hold a pool of assets and multiple sub-funds, and offering greater confidentiality.
While many asset managers have offices in Singapore, most of their funds are still registered in offshore jurisdictions. The new rules offer investors greater flexibility and can be used for both traditional and alternative strategies.
Monetary Authority of Singapore reported that the city’s asset-management industry grew more than five per cent to SGD 3.4 trillion ($2.5 trillion) in 2018.
Additionally, the city-state is set to benefit from months of unrest in its long-time regional rival, with more Hong Kong-based asset managers inquiring about opening offices in Singapore.
The framework has alongside a pilot program involving about 20 funds. The pilot program is acting as a litmus test for global funds interested in being based in Singapore. The new framework complements Singapore’s existing legal structures of limited partnerships, private companies and unit trusts.