StanChart sets up its first global fund management entity in S’pore to serve high-net-worth clients
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Standard Chartered Bank said it will appoint leading global fund managers in the industry as sub-investment managers.
PHOTO: REUTERS
SINGAPORE – Standard Chartered Bank has set up its first variable capital company (VCC) in Singapore to cater to affluent clients globally.
The Standard Chartered Funds VCC, or the SC Fund, is a new corporate entity that enables the bank to launch a series of funds to give its clients exclusive access to unique investment strategies, said the bank on June 10.
The VCC is a corporate structure for investment funds that can be set up as a standalone fund or an umbrella fund with two or more sub-funds, each holding a portfolio of assets and liabilities segregated from the other sub-funds.
StanChart said it will appoint leading global fund managers in the industry as sub-investment managers. They will be responsible for investment decisions and day-to-day management of the portfolio, and complement the bank’s team of global asset class specialists.
These sub-investment managers will be handpicked by the bank’s team of investment professionals – fund selectors and investment managers – who are located across multiple geographies.
StanChart said: “The team’s manager selection process is robust, following a comprehensive due diligence process to identify strategies that aim to deliver consistent outperformance over time.”
Funds to be launched will advocate a “long-term strategic asset allocation”. They will initially be available to the bank’s high-net-worth clients who are accredited or professional investors, within StanChart’s priority, priority private and private segments in Singapore, Hong Kong and Dubai.
In Singapore, the bank requires priority banking clients to maintain at least $200,000 in deposits, investments, or both, or maintain a minimum of $1.5 million in housing loans with the bank.
Mr Patrick Lee, chief executive for Singapore and Asean at StanChart, and the SC Fund’s chair, said that Singapore is a critically important market for the bank, with its global businesses based here.
“Setting up the bank’s first global VCC in Singapore underscores our commitment to build on the country’s position as a leading regional and global wealth hub.”
He added: “Through SC Fund, we will be able to issue and manage innovative and relevant fund solutions for our global affluent clients in key markets across Asia, Africa and the Middle East, right here from Singapore.”
Mr Samir Subberwal, global head for wealth solutions, deposits and mortgages, and chief client officer at the bank, said: “We are delighted to offer the first solution under SC Fund to high-net-worth clients in Singapore, Hong Kong and Dubai, and look forward to extending the same offering to clients in other key markets very soon.”
Singapore’s largest bank DBS has also leveraged the VCC structure to meet demand from wealthy clients.
In June 2023, it launched the DBS Multi Family Office Foundry VCC
Under the umbrella VCC, which has multiple underlying sub-funds, clients are offered a range of customisable investment strategies.
They can choose to either have their sub-fund professionally managed by DBS’ discretionary portfolio managers, or by a family member or investment adviser.
Singapore has been home to a growing number of high-net-worth individuals. It has 244,800 resident millionaires, 336 centi-millionaires and 30 billionaires, based on a recent report by consultancy Henley & Partners.
This comes after 3,400 high-net-worth individuals moved here in 2023 alone.
