Envysion Wealth Management sets up Variable Capital Company

Envysion Wealth Management, an independent, full-service wealth manager with a speciality in family office solutions, has successfully set up its first Variable Capital Company (VCC) - Envysion Global Investments VCC.

This will enable Envysion to launch multiple sub-funds with a variety of investment strategies for its high net worth (HNW) clients’ financial needs, all under one umbrella, the firm said in a press release.

Prior to the VCC setup, Envysion had curated bespoke investment solutions for HNW clients through alternative structures such as Active Managed Certificates (AMC), which have consistently outperformed market benchmarks on an absolute return basis.

The first sub-fund strategy under Envysion Global Investments VCC is a unique alternative investment in commodity trade receivables; specifically, in the receivables of nickel. Having sustained high demand in the past couple of years, nickel trade holds a promising future. As economies begin to recover, the demand for new technology hardware will ramp up. Especially with the rise of 5G and electric vehicles, nickel will continue to be a valuable and crucial component in the manufacturing of batteries, alloy and steel. This strategy aims to generate returns in excess of 20 percent per annum with relatively low-risk exposure, and also serves as an alternative to traditional portfolio asset allocations. With its well-managed risk exposure, the strategy also serves as an alternative to traditional portfolio asset allocations for investor’s diversification purposes.

The investment strategies for the second and third sub-fund will be around trade financing and collateralised physical gold, respectively; expected to launch later in 2020.

Veronica Shim, Founder and CEO, Envysion Wealth Management, said: “The launch of Envysion Global Investments marks an exciting chapter of Envysion’s journey so far. It presents unique investment strategies for our clients and also provides an opportunity for single-family offices to tap on the infrastructure that we’ve established to complement their existing services.”

“When MAS first discussed the concept, we were immediately drawn to its potential and flexibility, especially since funds are domiciled in Singapore. When it was launched in January, it represented a great step forward for Singapore’s wealth and fund management industry, further strengthening and cementing our position as Asia’s preferred financial centre,” Shim continued.

The Envysion Global Investments VCC will also allow funds to be re-domiciled in Singapore. This will allow funds to tap into the Asian markets without losing their identity and legacy while enjoying tax incentives and treatments that are available to current investment funds that are domiciled in Singapore. With a Singapore-domiciled fund, co-location of the fund vehicle and the wealth management entity allows for better economies of scale in terms of operating costs and a more extensive range of benefits that investors can tap into.

Peter Triggs, Wealth Planning Advisor, Envysion Wealth Management and CEO, Triggs Wealth Advisory, said: “Faced with shifting market dynamics, changing investor preferences and changes to laws and regulations, it is increasingly important for both private clients and asset managers to be able to structure their personal investments and family businesses. The setup of Envysion’s VCC presents clients with maximum flexibility in managing their funds and investments, guided by the insights and advice of Envysion’s wealth managers for optimal tax and legal impact.”

Besides HNW clients, Envysion also offers support for single-family offices around the region. Envysion has made significant investments in technology to create a unique, tailored platform that aggregates data and information from across its financial partners - providing its clients with a consolidated overview of their entire portfolio.

To this end, single-family offices will be able to leverage Envysion's infrastructure, which includes a fully-equipped CIO office in partnership with over 20 global private and investment banks. The consolidated platform provides 100 per cent visibility and centralised access for clients. Beyond a registered VCC, single-family offices will also have access to a network of subject matter experts for financial and non-financial solutions.

Since Envysion’s incorporation six months ago, the company has taken great strides in bringing a refreshed approach to wealth management. Against the backdrop of a wealth management industry that is slow to change and innovate, Envysion’s bespoke solutions cater to both financial and non-financial needs of clients that span across Asia and the Middle East. Envysion has since doubled its Assets under Management (AUM) to almost USD800 million, and growing, with a goal to achieve USD1.5 billion by the end of 2020.