Fund Accounting and Fund Administration Services

All businesses and companies need to keep proper accounting records for their own business needs as well as regulatory compliance. The landscape for accounting is changing rapidly. With remote working becoming the new norm, the use of technology in accounting such as cloud accounting services has become increasing prevalent and important.

As more companies embrace working from home and the de-centralisation of their operations, more efficient and productive ways are sought to keep their businesses running and profitable. Our company has also leveraged the use of technology to help our clients find the edge in an increasingly competitive business landscape.

Fund Accounting and Fund Administration Services

As Singapore strengthens its position as a financial hub, many fund managers and fund companies are setting up their business here. We offer a range of services to fill the needs of this growing market.

Fund-related accounting services in Singapore

As a leading global financial hub, Singapore serves as a gateway for many funds and asset managing companies around the world to get their foothold in Asia. To that end, the Singapore government has implemented the Variable Capital Company (“VCC”) – a new corporate structure for investment funds constituted under the Variable Capital Companies Act which took effect on 14 Jan 2020. The VCC will complement the existing suite of investment fund structures available in Singapore.

A Variable Capital Company has a variable capital structure that provides flexibility in the issuance and redemption of its shares. It can also pay dividends out of capital, which gives fund managers flexibility to meet dividend payment obligations.

A VCC can be set up as a single standalone fund or an umbrella fund with two or more sub-funds, each holding a portfolio of segregated assets and liabilities. For fund managers that structure their funds as umbrella VCCs, there may be cost efficiencies from using common service providers across the umbrella and its sub-funds.

Through a Variable Capital Company, a wide range of investment strategies could be deployed, including but not limited to the traditional equity, fixed income, real estate, private equity, fintech, and alternative investments. Furthermore, the Monetary Authority of Singapore has rolled out a generous VCC grant scheme until 15 January 2023.

Fund Accounting Singapore

With the expected increase in VCC’s being formed, and a corresponding increase demand for fund accounting Singapore is poised to meet this demand with more value-added services from its accounting firms.

Our fund accounting Singapore services include:

  • Net Asset Value (NAV) calculation
  • Fund accounting report (daily, weekly, monthly and NAV computation)
  • Preparation of quarterly / interim reporting to investor / regulator and FRS compliant annual financial statements
  • Coordination of annual audit
  • Reporting on portfolio performance
  • Calculation of management fees and incentive fee
  • Calculation of carried interest according to the agreements
  • Performance fee equalisation
  • Calculations for distribution waterfall
  • Reconciliation of significant transaction for drawdowns and distributions


1. What is Variable Capital Company (VCC)?

VCC is a new legal entity form / structure for all types of investment funds in Singapore. It can be formed as a single standalone fund, or as an umbrella fund with two or more sub-funds, each holding a portfolio of segregated assets and liabilities.

2. What are the key features of the VCC?

The VCC has a very flexible structure suitable for a wide range of investment products. It can either be setup as a standalone entity or an umbrella entity with a number of sub-funds under it. To protect investors, the assets and liabilities of each sub-fund are segregated from one another. The VCC register of shareholders will also not be made available to the public, protecting the privacy of investors.

One of the most important features is that the VCC allows for redemption of shares and payment of dividends from its share capital without the need for shareholders’ approval, giving investors easier entry and exit from their investments.

3. What is the difference between an umbrella VCC and a standalone VCC?

An umbrella VCC has segregated sub-funds under it. In this structure, the VCC will be a single legal entity, with its sub-funds operating as separate cells.

A sub-fund will be constituted by registration with ACRA, which will provide the sub-fund with a unique sub-fund identification number. To mitigates investors’ risks from the different sub-funds, the assets of a sub-fund cannot be used to discharge the liabilities of or claims against the VCC or any other sub-fund of the VCC. Furthermore, any liability incurred on behalf of or attributable to any sub-fund of a VCC must be discharged solely out of the assets of that sub-fund.

4. Is VCC structure open to existing foreign funds?

Yes. The VCC allows an inward re-domiciliation of foreign funds with a similar structure to Singapore quite easily. The fund would have to deregister at their current domicile location and register with ACRA in Singapore. Instead of pursuing fund management in offshore jurisdictions (such as Cayman or British Virgin Islands), Singapore is offering an onshore alternative where fund managers can build economic substance and provide longevity.

5. What are the tax implications of the VCC?

A VCC will be taxed as a single entity as regular Singapore company. This gives the VCC access to tax treaties and Double Tax Agreements (DTAs) with over 70 jurisdictions internationally. In addition, there are also tax incentives available for the Singapore Resident Fund (SRF) and the Enhanced-tier Fund (ETF) under the 13R and 13X schemes respectively.

Get in Touch

Contact us today and we will connect you with the most appropriate specialist to meet your needs.