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Noviscient announces its Pure Alpha Fund available under new VCC framework

Noviscient, a Singapore-based AI open-platform fund manager, has announced the launch of its Pure Alpha Fund, one of the first VCC funds under the new Variable Capital Company (VCC) framework introduced by the Monetary Authority of Singapore.

The fund will commence its offering by leveraging on the technology of Saxo Markets, a leading FinTech specialist focused on multi-asset trading and investment. The flexibility of the VCC framework enables the Pure Alpha Fund to offer a suite of funds that deliver alpha or excess returns for investors.

The new VCC fund structure is designed to enhance Singapore’s competitiveness and positioning as a fund management hub globally. Noviscient has chosen to invest through Saxo Markets, and is one of the 20 foundation firms featured in the VCC launch. In the lead up to the official launch of the VCC framework in Singapore, Saxo and Noviscient collaborated closely to put in place their respective structures and processes to ensure that the VCC offering is available to clients at the time of the MAS launch.

Scott Treloar, Chairman and Chief Investment Officer, Noviscient, said “We are really excited to be able to introduce our Pure Alpha Fund as one of the first VCC funds. It comprises a dynamic portfolio of systematic trading strategies sourced from market-neutral hedge funds and trading groups from around the world. By tapping into Saxo’s technology, we are ready from the get-go to onboard funds and family offices that want to use that structure. This is incredible as it opens up many opportunities for us to access and service hedge funds and family offices in Singapore.”

Adam Reynolds, CEO, Asia Pacific, Saxo Markets, said “Saxo welcomes the introduction of the VCC structure into the market as it enhances Singapore’s position as a global fund management centre. With the VCC, we now have more offerings for fund managers, strengthening our position as a facilitator in the hedge fund and family office ecosystem.”

Saxo is honoured to work with Noviscient, one of the foundation firms featured in the VCC launch. We already have the right set up in place and we are one of the first service providers who can onboard these VCC funds quickly and efficiently through an accelerated onboarding programme. This positions us strongly to help fund managers hit the ground running from day one,” Reynolds continued.

The market opportunity that comes with the roll out of the VCC structure in Singapore is significant, as Singapore has seen exceptional growth in the asset management sector, with growth in total Assets Under Management (AUM) of SNG3.4 trillion in 2018, continuing a strong track record of 11 years of growth year-on-year. In addition, given that the world’s biggest hedge fund returns are found in Singapore, the VCC framework is expected to further boost Singapore’s position as the leading pan-Asian fund management and domiciliation hub.