DBS Private Bank D05 has launched the DBS Multi Family Office Foundry VCC (DBS MFO), the world’s first bank-backed multi family office that leverages on Singapore’s variable capital company (VCC) structure.
The service provides an alternative option for UHNW families to manage their wealth here without having to establish their own single family office (SFO), which may be more expensive in general. In addition, the platform offers such families cost savings through shared resources and expenses across multiple sub-funds.
DBS MFO, which is established as an umbrella VCC with multiple underlying sub-funds, allows UHNW families to access a full suite of investment services including investment management and custody solutions within one platform.
Here, clients are offered a range of investment strategies that can be customised to their needs. They can also opt to have their sub-fund professionally managed by the DBS Discretionary Portfolio Management (DPM) team, or by a family member/ an investment adviser of their choice.
Families will need at least $15 million to invest through DBS MFO.
“The launch of DBS MFO marks yet another milestone in the evolution of our family office proposition, where our clients look to us as a trusted advisor for bespoke wealth preservation and legacy planning solutions,” says Lee Woon Shiu, group head of wealth planning, family office & insurance solutions at DBS Bank.
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“Our new offering has already attracted keen interest from global UHNW families and their advisors, who see tremendous value in leveraging the VCC as a unique wealth structuring solution. It is also an attractive option for some families who are not looking to immediately relocate to Singapore, but would like to consolidate their assets here,” Lee adds.
In addition, Lee believes that the ‘Singapore Inc’ brand – which includes a strong rule of law as well as political and economic stability among other factors – will “continue to appeal to families worldwide” in the midst of rising global demand for family offices.
According to DBS, the bank has already received “positive feedback and healthy interest” from its clients. It adds that it is currently in talks with more than 20 clients and prospects across Asia.
“Client interest in succession planning and wealth preservation has intensified and, in fact, we recorded a substantial increase in the number of new requests in 1Q2023. This will continue to fuel the growth of our family office business,” says Lee.
