Latest news with #SFOs
Business Times
4 days ago
- Business
- Business Times
Bank of Singapore launches alternative option to single-family offices for ultra-high-net-worth individuals
[SINGAPORE] The Bank of Singapore (BOS) on Monday (Aug 18) announced the launch of a new option for ultra-high-net-worth individuals (UHNWIs) to professionally manage their wealth, as an alternative to single-family offices. Such individuals have a net worth of US$250 million and above, said the bank. The Bank of Singapore Family Office Catalyst will grant UHNWIs access to specialised investment expertise and eligibility for tax exemptions, BOS said, noting that such advantages are 'traditionally associated' with single-family offices. UHNWIs 'continue to be keen to professionalise the management of their wealth, and many are exploring alternative options to single-family offices', said Lim Leong Guan, BOS' global head of financial intermediaries, family office and wealth advisory. 'Concerns around high operating costs and the challenge of attracting suitable investment talent amid intense competition are prompting them to consider more efficient solutions.' BOS also pointed to a 2024 report by McKinsey, that said rising operational costs and the need to have access to technology-enabled platforms were among the top five challenges for family offices in Asia-Pacific. UHNWIs using the new solution may qualify for tax exemptions under Sections 13O and 13U of the Income Tax Act 1947, BOS said. These, it noted, are similar to the exemptions available under SFOs. BOS added that UHNWIs using the solution must have an investment vehicle with at least US$20 million in assets under management; funds in the vehicle will be managed by the bank through either discretionary portfolio management or advisory portfolio management. Individuals opting for the new solution 'will have the flexibility to transition to an SFO structure' later on, said the bank.
Independent Singapore
20-06-2025
- Business
- Independent Singapore
Singapore family offices pivot investment amid global volatility
SINGAPORE: Family offices (FOs) worldwide, including those based in Singapore, are set to diversify their investment portfolios. This is according to the 2025 Global Family Office Survey by US multinational investment firm BlackRock, which responds to rising tariff tensions and a potential US economic slowdown. This will drive further investment in non-US developed market stocks. The survey, which included FOs that oversee Singapore's estimated S$5.4 trillion in assets under management (AUM), indicates a clear shift away from traditional US-focused investments. The spectre of US tariffs on the horizon, plus indications of a possible economic downturn, have led 62% of FOs to focus their attention on European and Japanese equities and away from the traditional focus on US equities, bonds, and cash assets. They are seen as a strong hedge, due to generating stable returns amid uncertainties and US market volatility. The move by FOs worldwide comes amid growth in Singapore's FO sector. The city-state saw over 2,000 single-family offices (SFOs) operating there at end-2024, up from 400 SFOs in 2020. Singapore's central bank is promoting a diversification push. Incentives like the Section 13O and 13U tax schemes are meant to foster an environment where FOs can explore alternative assets. Beyond equities, FOs surveyed are also looking to channel investments into fixed-income securities and private markets, such as private equity and real estate. 51% of FOs are optimistic about private credit — non-banking debt that is privately traded, while 75% are bullish on infrastructure. Lili Forouraghi, Head of Family Office, Healthcare, Endowment and Foundations for BlackRock in the US, commented: 'The sustained demand and interest in private credit and infrastructure from family offices is a testament to the illiquidity premia and differentiated return opportunity in the current investment landscape.' 'Access to opportunities and the right strategies continue to rise in importance as these asset classes evolve from niche strategies to the cornerstone of client portfolios,' he added. However, analysts caution there are risks ahead. Europe has to contend with energy price volatility and geopolitical tensions, which 84% of FOs consider critical. Meanwhile, the long-term growth prospects for Japan are limited by ageing demographics. Overall, the trend benefits Singapore due to its safe-haven status. The US-China trade tensions and their impact mean Singapore's neutrality, stability and governance framework position it as a destination for reallocating capital.
