Variable Capital Companies Act

The VCC regime offers significant advantages for investors and fund managers, such as:

• Risk diversification - By pooling funds from multiple investors, VCCs can spread their investments across a variety of assets, reducing the risk associated with a single investment. This diversification strategy helps to protect investors from market volatility.
• Segregation of assets and liabilities – the assets and liabilities of each sub-fund within a VCC structure are segregated such that the underperformance of one sub-fund will not influence the performance of other sub-funds.  Moreover, the winding up of any sub-fund will not cause any negative impact on the VCC or other sub-funds.
• Economies of scale - By streamlining management and operational activities into a single entity, VCCs can achieve economies of scale. Moreover, they offer fiscal incentives that make them an attractive option for investors seeking long-term traditional and alternative investments, therefore allowing investors to maximise their returns while being tax efficient.
• Access to different asset classes - investors can access a well-regulated fund services provided by professionals with extensive experience managing assets across different asset classes.