What is the fund vehicle?
The FundBox vehicle is a Variable Capital Company structure regulated under the Monetary Authority of Singapore. It allows multiple collective investment schemes (sub-funds) to exist under the umbrella of a single corporate entity and yet remain ring-fenced from each other.
Each FundBox will be a separate sub-fund under the Noviscient umbrella fund structure, with the usual fund service providers including administration, audit, and compliance.
How does the Singapore VCC compare with other vehicle structures?
What is the setup timeline?
The steps are: agree the terms, register the sub-fund, appoint service providers, complete the offering documents, onboard investors, and set up the connectivity.
The projected timeline is within two months which is still substantially shorter than launching a fund vehicle.
Will the fund be marketed under my own brand?
What is the cost structure?
To ensure alignment, we charge a percentage of the manager's total fees with a floor. The fee sharing starts at 20% of total fees and scales down towards 5% as your fees increase. We are open to discuss alternative structures as well.
How does the FundBox compare with other fund vehicle options?
The cost is highly competitive given that the sub-fund leverages on the umbrella master fund's service providers and Noviscient's automated platform. We have a detailed cost comparison worksheet upon request.
What is the breakeven AUM for setting up a FundBox vehicle?
The breakeven AUM depends on your charged fees for your vehicle and expected performance. Based on a 1% management fee and 20% performance fee, a conservative assumption of zero return will lead to a breakeven AUM of $5M.
Who are Noviscient’s fund service providers?
We will provide you the list of service providers during the onboarding process. This will include fund administrator, auditor, bank, legal, corporate services and tax.
Are there any ongoing expenses?
The FundBox vehicle annual expenses are charged to the fund. And other than the Noviscient Fees, there are no other expenses. We will explain the expected expenses to you during onboarding process.