Tembusu Partners

Hawkish Powell is back! This and more in this week's edition

The way you structure your wealth can define its security, growth, and legacy. 🌱 Here’s an introduction to Singapore’s Variable Capital Company (VCC) structure, a game-changer for managing wealth. 📜 A Brief History of the VCC in Singapore: The VCC framework was introduced in January 2020 by the Monetary Authority of Singapore (MAS) as part of efforts to strengthen Singapore’s position as a global asset management hub. Backed by the VCC Act, this innovative structure was designed to offer fund managers a flexible, efficient, and globally competitive option for setting up investment funds. So, Why the VCC Structure? 1️⃣ Flexibility with Sub-Funds A VCC allows you to establish multiple sub-funds under one umbrella. Each sub-fund has its own assets and liabilities, providing flexibility and tailored strategies—all in one legal entity. 💰 Sub-Fund vs. Umbrella Fund: If you want to minimize costs and speed up the setup process, a sub-fund is your best bet. If you have a broader strategy or plan to launch additional funds in the future, an umbrella fund may be the way to go. While umbrella funds come with higher costs, they make sense when your collective AUM justifies the investment. 🔒 Ring-Fencing of Sub-Funds: Even though sub-funds fall under the same umbrella, each one is legally ring-fenced. This ensures that each sub-fund is protected from the others, offering extra security for your assets. 2️⃣ Tax Efficiency VCCs benefit from Singapore’s robust tax incentives: ✅ Treated like a company, they enjoy the same tax deductions and exemptions. ✅ You can apply for a Certificate of Residence (COR) to avoid double taxation. ✅ Sub-funds share the umbrella fund’s tax residence. ✅ Dividends paid by a Singapore tax-resident VCC are tax-exempt for shareholders. 3️⃣ Privacy and Confidentiality Unlike traditional fund structures, VCC shareholder registers are not public. This ensures your investments are managed discreetly while adhering to global compliance standards. 4️⃣ Global Credibility As a Singapore-based entity, a VCC aligns your investments with one of the world’s most secure and reputable financial systems. This structure wasn’t just designed for fund managers—it’s tailor-made for family offices and high-net-worth individuals seeking security and growth. Whether you're a fund manager, family office, or high-net-worth individual, the VCC structure offers flexibility, security, and tax efficiency to build and grow wealth. 💬 Interested in exploring Singapore’s VCC landscape? Drop us a DM!

Why Are High-Net-Worth (HNW) Individuals Choosing Singapore for Investments and Legacy Planning? Singapore has solidified its position as a top destination for HNW individuals seeking to grow their wealth and secure their legacy. Notable figures like Eduardo Saverin (Facebook co-founder), Jet Li (actor and philanthropist), and Forrest Li (founder of Sea Group) have chosen to call Singapore home, drawn by its economic opportunities, stability, and investor-friendly policies. Here’s why: 1️⃣ Leading Economic Hub Singapore is rated as 𝘁𝗵𝗲 𝗺𝗼𝘀𝘁 𝗰𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 𝗲𝗰𝗼𝗻𝗼𝗺𝘆 𝗶𝗻 𝘁𝗵𝗲 𝘄𝗼𝗿𝗹𝗱 (Global Competitiveness Index 2019). It is: • The largest foreign exchange market in Asia-Pacific and 3rd globally (BIS, 2016). • A banking hub with 200+ banks, including 40 representative offices, many serving as regional HQs. • A deep, mature debt market with USD 380.4 billion in outstanding local currency bonds as of 2020. 2️⃣ Conducive Business Environment Ranked 𝟯𝗿𝗱 𝘀𝗮𝗳𝗲𝘀𝘁 𝗰𝗶𝘁𝘆 𝗴𝗹𝗼𝗯𝗮𝗹𝗹𝘆 (Safe Cities Index 2021, EIU), Singapore offers a secure environment for families and businesses, underpinned by low crime rates and a transparent legal system. Additionally, Singapore ranks 𝟭𝘀𝘁 𝗶𝗻 𝗘𝗜𝗨'𝘀 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗘𝗻𝘃𝗶𝗿𝗼𝗻𝗺𝗲𝗻𝘁 𝗥𝗮𝗻𝗸𝗶𝗻𝗴𝘀, thanks to its: • Robust regulatory environment • Efficient infrastructure for businesses • Access to financial services • Strong contract enforcement. 3️⃣ Attractive Tax System Singapore’s tax policies are designed for wealth preservation and business growth, with: ✅ No capital gains tax ✅ No tax on dividends ✅ No inheritance tax (compared to Korea’s 50%, Japan’s 55%, and France’s 45%) ✅ A flat 17% corporate tax rate (one of ASEAN’s lowest) 4️⃣ Strong Financial Infrastructure As a global financial hub, Singapore enables seamless cross-border transactions and 𝗯𝗼𝗮𝘀𝘁𝘀 𝟭𝟬𝟬+ 𝗱𝗼𝘂𝗯𝗹𝗲 𝘁𝗮𝘅𝗮𝘁𝗶𝗼𝗻 𝘁𝗿𝗲𝗮𝘁𝗶𝗲𝘀, facilitating efficient international trade and investments. 5️⃣ Ease of Residency Singapore offers accessible pathways to residency for skilled individuals and families, providing long-term opportunities to live, work, and invest in a dynamic, stable environment. From its role as Southeast Asia’s economic powerhouse to its investor-friendly policies, #Singapore continues to attract #HNW individuals seeking stability and opportunity. Looking to grow your wealth or plan your legacy in Singapore?  𝗟𝗲𝗮𝘃𝗲 𝘂𝘀 𝗮 𝗺𝗲𝘀𝘀𝗮𝗴𝗲 to learn more. #investment #legacyplanning #wealthmanagement #startups #TembusuPartners #PrivateEquity #Earlystageventures #VentureCapital

FOMC in focus for next week. This and more in this week's edition.

SG vs BVI vs Cayman: Which Structure Fits Your Investment Goals? Investors often move offshore for tax benefits or relaxed regulations. Popular jurisdictions include Singapore (SG), British Virgin Islands (BVI), and Cayman Islands (CI). Here’s a quick comparison of SG’s Variable Capital Company (VCC), BVI’s Business Company (BC), and CI’s Segregated Portfolio Company (SPC). 1️⃣ Target Fund Types VCC: Flexible for open-ended, closed-ended, and diverse strategies. Supports multiple sub-funds under one umbrella for better risk management. Cayman SPC: Designed for multi-class hedge funds, umbrella funds, or master-feeder structures. BVI BC: Ideal for simple holding companies, startups, or private investments. 2️⃣ Tax Incentives VCC: Access over 100 Double Taxation Agreements (DTAs) to lower withholding taxes. Benefit from tax exemptions via Singapore’s fund management schemes. Cayman SPC: No direct taxes but lacks access to tax treaties. BVI BC: No direct taxes but tax treaty benefits are limited. 3️⃣ Regulatory Framework VCC: Backed by Singapore’s VCC Act and government incentives. Cayman SPC: Established offshore framework for segregated and multi-class funds. BVI BC: Simple incorporation under the BVI Business Companies Act. 4️⃣ Reputation & Investor Appeal VCC: Signals credibility by operating in Singapore, a globally trusted financial hub. Cayman SPC: Widely recognized as a top-tier offshore financial center. BVI BC: Favored by startups and SMEs for holding assets or private investments. 5️⃣ Operational Costs VCC: Cost-effective for fund managers utilizing umbrella structures, benefiting from tax incentives and grants. Pricing is competitive and can be more affordable, depending on the service provider. Cayman SPC: Best for complex multi-class fund setups, but operational costs are higher. BVI BC: Competitive setup and maintenance costs. - Choosing the Right Structure - Here’s a quick summary of the three options: 🔹 Singapore VCC Best for: Fund managers prioritizing operational efficiency, tax benefits, and a stable regulatory environment. Drawbacks: US investors might be less familiar with Singapore vs Cayman/BVI structures. 🔹 Cayman Islands SPC Best for: Complex fund structures like multi-class funds or investors prioritizing tax neutrality. Drawbacks: Higher operational costs and scrutiny for funds marketed to U.S. or EU investors. 🔹 BVI BC Best for: Entrepreneurs, startups, or holding companies seeking flexible offshore solutions. Drawbacks: Not ideal for sophisticated funds or global tax treaty benefits. Which structure matches your investment needs? 💼 Drop us a DM to discuss your options and find the best fit for your goals!

Bitcoin crosses 100k! This and more in this week's edition

Quiet holiday shortened week in the US - happy thanksgiving to those who celebrate!

The way you structure your wealth can define its security, growth, and legacy. 🌱 Here’s an introduction to Singapore’s Variable Capital Company (VCC) structure, a game-changer for managing wealth. 📜 A Brief History of the VCC in Singapore: The VCC framework was introduced in January 2020 by the Monetary Authority of Singapore (MAS) as part of efforts to strengthen Singapore’s position as a global asset management hub. Backed by the VCC Act, this innovative structure was designed to offer fund managers a flexible, efficient, and globally competitive option for setting up investment funds. So, Why the VCC Structure? 1️⃣ Flexibility with Sub-Funds A VCC allows you to establish multiple sub-funds under one umbrella. Each sub-fund has its own assets and liabilities, providing flexibility and tailored strategies—all in one legal entity. 💰 Sub-Fund vs. Umbrella Fund: If you want to minimize costs and speed up the setup process, a sub-fund is your best bet. If you have a broader strategy or plan to launch additional funds in the future, an umbrella fund may be the way to go. While umbrella funds come with higher costs, they make sense when your collective AUM justifies the investment. 🔒 Ring-Fencing of Sub-Funds: Even though sub-funds fall under the same umbrella, each one is legally ring-fenced. This ensures that each sub-fund is protected from the others, offering extra security for your assets. 2️⃣ Tax Efficiency VCCs benefit from Singapore’s robust tax incentives: ✅ Treated like a company, they enjoy the same tax deductions and exemptions. ✅ You can apply for a Certificate of Residence (COR) to avoid double taxation. ✅ Sub-funds share the umbrella fund’s tax residence. ✅ Dividends paid by a Singapore tax-resident VCC are tax-exempt for shareholders. 3️⃣ Privacy and Confidentiality Unlike traditional fund structures, VCC shareholder registers are not public. This ensures your investments are managed discreetly while adhering to global compliance standards. 4️⃣ Global Credibility As a Singapore-based entity, a VCC aligns your investments with one of the world’s most secure and reputable financial systems. This structure wasn’t just designed for fund managers—it’s tailor-made for family offices and high-net-worth individuals seeking security and growth. Whether you're a fund manager, family office, or high-net-worth individual, the VCC structure offers flexibility, security, and tax efficiency to build and grow wealth. 💬 Interested in exploring Singapore’s VCC landscape? Drop us a DM!

Bitcoin almost makes it to 100k. This and more in this week's edition

Congratulations to Tembusu-backed Toku on raising a USD 5 Million Series A extension and having former Singapore Minister Lim Hwee Hua as the newly appointed Chair of Toku’s Advisory Board! 🎉 Toku is on track to achieve USD 30 Million in revenue for 2024 and aims for profitability by 2025. Recognized for their innovation, Toku is transforming enterprise communications in APAC and beyond. Toku delivers a comprehensive end-to-end solution, helping businesses navigate the complexities of global digital transformation and enhance their Customer Experience with mission-critical cloud communication solutions that deeply integrate with customer data and business processes. 🌏💬 We’re proud of the impact Toku is making in transforming customer engagement and excited to support their continued growth under the guidance and strategic insight of Mrs. Lim. 🚀 Read more about what this means for Toku: https://lnkd.in/gB5Uj7cp Thomas Laboulle #Toku #CustomerExperience  #CustomerEngagement #CloudCommunications #AI #Startups #Innovation #AIChat #VoiceTechnology #TembusuPartners