What are the main features of a Singapore Variable Capital Company (VCC)?

This aspect requires a professional company to answer, in this regard, Singapore Fuzzy Lin station in the premise of many years of practical experience for you to explain:

1. Variable Capital Company is a corporate entity.

2. A VCC can be used for both open and closed-end fund strategies.

3. A variable capital company has the flexibility to issue and redeem its shares. It can also pay dividends out of capital, which gives fund managers the flexibility to meet their dividend payment obligations.

4. The sole purpose of a variable capital company is to be one or more collective investment schemes, i.e. it is used exclusively as an investment fund.

5. A VCC can be structured as a stand-alone structured fund or as an umbrella fund structure with multiple sub-funds.

6. An umbrella fund with sub-funds, where the assets and liabilities of the sub-funds are segregated from each other.

7. An umbrella fund with sub-funds will ***use a board of directors and can ***enjoy service providers (e.g. auditors, lawyers, accountants, fund administration, etc.).

8. A variable capital company will always have capital equal to its net assets and therefore have a degree of flexibility in distributing and reducing capital.

9. A Variable Capital Company is not required to make its register of shareholders available to the public.

10. The financial statements of a Variable Capital Company can be prepared in accordance with different standards (e.g. International Financial Reporting Standards (IFRS), Singapore Financial Reporting Standards (SFRS), or United States Accounting Standards (US GAAP)).

11. Existing (Singapore) offshore corporate funds are allowed to transfer to Singapore and register as variable capital companies.

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