The VCC fund is designed as an umbrella structure that enables multiple sub-funds to operate under a single fund. Each sub-fund can have its own portfolio and investment strategy, providing investors with a flexible and efficient way of organising and managing their assets, the first said in a statement.

As one of the first Swiss private banks to introduce this offering, UBP said the approach delivers an institutional-grade solution designed to address the complex wealth management needs of global single-family offices and ultra-high net worth individuals.

VCCs, established at the start of 2020, are part of Singapore's push to raise its stakes as a wealth management sector. VCCs are flexible corporate structures used for both open-ended and closed-end investment funds; they can invest in a wide range of assets, including equities and fixed income instruments, both in public and private asset markets. The vast majority are offered to only accredited and/or institutional investors. VCCs enable branches of a family with different goals to run separate sub-funds while pooling their costs. Regulators have sought to tighten up practices in space, as reported here.

UBP’s Discretionary Portfolio Management (DPM) team in Singapore leads this investment strategy, giving clients access to a range of asset classes, including traditional equities and fixed income, as well as alternative investments such as private markets and hedge funds. The bank is also collaborating with third-party asset managers to provide a broader selection of investments.

The benefits
From a wealth management perspective, UBP said it is using the benefits of the VCC structure to support legacy planning by preserving wealth and ensuring succession through:

Simplified succession planning: Efficient transfer or redemption of sub-fund shares, minimising probate complexities and potential disputes;

Continuity of management: Dynamic adjustments adapt the fund to evolving family needs, ensuring asset management across generations;

Cross-border efficiency: Leveraging Singapore’s status as a global financial hub, the VCC structure streamlines international asset administration, minimising complex probate processes in multiple jurisdictions;

Integration with trusts: The VCC’s operational efficiency gives clients greater control over wealth distribution with conditions such as staggered payouts; and

Compartmentalised wealth management: Multiple ring-fenced sub-funds ensure targeted asset management for specific purposes, safeguarding the portfolio against cross-contamination and maintaining control across diverse family branches, geographies, asset classes, or philanthropic goals.

“Leveraging the bank’s strong investment solutions, UBP’s VCC offering embodies the perfect blend of institutional-grade investment capabilities and private wealth flexibility,” said Paras Gupta, head of investment services Southeast Asia and head of discretionary portfolio management Asia.

“By uniting Singapore’s strong financial infrastructure with Swiss private banking excellence, this strategic framework offers flexibility and tools for effective wealth management in an institutional manner,” Eric Morin, region head, South-East Asia and chief executive Singapore, added. “It ensures our clients’ assets are managed in a way that respects their legacy and supports future generations.”

UBP manages SFr171.7 billion ($214 billion) in client assets.