Sunday, 25 September 2022

Standard Chartered is appointed custodian for Singapore’s first authorised VCC T+0 money market fund by iFAST

5 min read

18 August 2022, Singapore iFAST Singapore and Standard Chartered announced today the launch of iFAST’s first authorised Variable Capital Companies (“VCC”) fund, under its VCC vehicle, iFAST Investments Select Series VCC.

The CNH Fund, one of the first retail VCC funds to be launched in Singapore, will be the first to offer a T+0 settlement for investors. The CNH Fund will be offered exclusively to investors through iFAST’s Auto-Sweep Account. This cash management solution aims to offer investors an enhanced yield above CNH term deposits as well as a first-in-market same-day liquidity, giving investors higher returns and greater flexibility, with no lock-ins. Standard Chartered has been appointed the sole global custodian of this VCC fund. Lion Global Investors Limited has been appointed as the sub-manager of this CNH Fund.

Launched in 2020 by the Monetary Authority of Singapore (MAS) and the Accounting and Corporate Regulatory Authority (ACRA), the VCC is an added corporate structure for investment funds and provides greater operational flexibility and cost savings for global fund managers establishing new funds or redomiciling their existing overseas funds to Singapore. Catering to both traditional and alternative strategies as well as open-ended and closed-ended funds, the framework aims to enhance Singapore’s position as an international fund management and domiciliation hub.

Since the launch of its Singapore dollar Auto-Sweep Account, iFAST has seen its Assets Under Management (AUM) grow at a rapid pace and iFAST expects its Auto-Sweep CNH Account to gain popularity with investors, given its attractive yields and same day liquidity. Besides earning an enhanced return, investors can also use its Auto-Sweep CNH account to transact in CNH denominated products on its platform such as stocks, exchange traded funds (ETFs) and unit trusts.

Lim Chung Chun, Chief Executive Officer (CEO) of iFAST Corporation Ltd, added that “Standard Chartered has been a long-standing partner of the iFAST group over the years. We are delighted that Standard Chartered shares our vision and plans for our VCC funds platform business and we look forward to their continued support for future fund launches.”

Francois Verlaine, Regional Head, Financing and Security Services, ASEAN and South Asia, Standard Chartered, said, “We are very excited to work with iFAST to launch their first authorised VCC money market fund for investors in Singapore. This is made possible because of the mutual trust and understanding between both organisations built over the years, and iFAST’s decision to have Standard Chartered partner it for this inaugural launch is testament to the Bank’s capabilities in our fund solutions.

Since the inception of the VCC framework in 2020, Standard Chartered has been working closely with the Monetary Authority of Singapore, industry participants and clients to drive change and growth of the asset management industry here. Our suite of fund solutions, coupled with our vast experience and solid track record as one of the pioneers of the framework, make our Financing and Securities Services business the ideal partner for fund managers to leverage the VCC scheme and expand their growth.

iFAST Singapore holds a Capital Markets Services Licence and is a CPF Investment Scheme (CPFIS)-registered Investment Administrator. The company provides investment solutions to financial advisers, financial institutions, insurance companies, pension fund managers, retail and accredited investors, and multi-national companies. iFAST Singapore is the Singapore business operation of iFAST Corporation Ltd, which is listed on the SGX Mainboard and present in Malaysia, Hong Kong, China and the UK.

As an international bank and a pioneer provider of custodial services in Singapore, Standard Chartered leverages its in-depth experience and local expertise to offer clients across its global footprint a comprehensive suite of custody and asset servicing solutions ranging from International Custody, Fund Administration, Trustee and Transfer Agency services. These capabilities enable the Bank to service onshore and offshore fund structures, across fund strategies, effectively supporting global, regional and local asset managers, asset owners and financial intermediaries.

 

Re-disseminated by The Asian Banker

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