Fund Administration in 2022: What You Need to Know
Being constantly in the know about the fast-paced market and fund industry is crucial for every fund administrator, because they are responsible for managing and balancing the portfolio of many investors. Here are five things fund managers should know about the fund industry today:
Singapore has placed itself as one of the leading financial hubs globally, as evidenced by Singapore’s burgeoning assets under management (AUM). In 2020, its AUM grew 17% to reach
This investor preference should come as no surprise, given Singapore’s stable and supportive government for business and investing. This can be seen by its tax-friendly regulations and the ease of establishing one’s business footprint here, a sentiment that the World Bank supports via their “
The Monetary Authority of Singapore (MAS) launched this new corporate structure in January 2020 that aims to make the investment process more flexible for investors and help save money for both investors and fund managers. Unlike a company that’s used to carry out a business, the sole purpose of a Variable Capital Company (VCC) is to create one or more collective investment schemes (CIS) in the form of a corporation. The investment can include either open-end or closed-end funds.
During its first year alone, there were approximately
Aside from the grant mentioned above, there are numerous tax incentives offered that a VCC can enjoy. These include the tax incentives under Section 13R (Singapore Resident Fund) and Section 13X (Enhanced Tier Fund). Essentially, there will be no taxable income from the gains or income derived from VCC investments, giving maximum income to both the investor and the fund manager. Additionally, VCCs have flexibility in issuing and redeeming shares without seeking shareholders’ approval, allowing investors to exit anytime they wish.
Climate change, global warming, and sustainability are a few buzzwords that have been gaining steam over the past years as people become more environmentally conscious — boosted by high profile events like COP26. This translates to how people are making their investments. Ethical investing or more commonly known as Ethical, Government, and Social (ESG) investing, is on the rise, as evidenced by its
In Singapore, MAS has announced plans to invest an estimated
The shift towards a more sustainable approach has resulted in better gains for investors. One example was when the COVID-19 pandemic first hit,
Did you know that
Another example that proves the allure of cryptocurrency is widespread was the release of a trust solution by
Remember that investing in crypto is not all rainbows and unicorns; it comes with several risks that you should assess based on your risk appetite.
The pandemic has highlighted the importance of going digital for all industries, including the fund management industry. Doing so ensures one’s business thrives and adapts to customers’ needs in the digital era. Digitalisation can be implemented in various areas of fund management, ranging from know-your-customer (KYC) regulations to processes and operations.
Going digital means embracing technology in your workflows, such as using video conferencing solutions to conduct KYC policies or leveraging robotics and automation for manual processes. One of which is the cash and stock reconciliation process. This will increase efficiency and productivity, meaning employees can focus on meaningful tasks 一 growing the fund instead of doing repetitive work. Not to mention, it also diminishes the possibility of human errors and also saves cost and time for the business itself.
The fund management industry is not a constant landscape. It’s continuously evolving with the changing times. Fund managers should keep tabs and look for the latest trends and changing regulations in the fund management space to best serve their growing customer base.
As one of the leading technology firms providing end-to-end financial services and solutions for businesses, Lanturn has a proven track record in fulfilling every client’s needs. This includes helping clients manage their funds well to meet their financial goals with the help of experienced fund managers. They’re ready to guide you through the ups and downs of the financial market.
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