Investors flocking to IFCs for assets: study

Almost half of institutional investors are already benefiting from using one.

Singaporean investors are gradually turning to international finance centres (IFCs) for asset safeguarding, according to a study commissioned by BVI Finance.

IFCs are common in the country, with 47% of institutional investors already reaping benefits from using one, due to turnkey administrative support and low maintenance costs. Of those already engaged, 46% of their investment portfolios benefit from using an IFC and those individuals expect to increase the volume of their assets by 21% in the coming year.

Large corporates (48%), high-net-worth individuals (32%), and institutional investors (16%) are seen to increase their involvement with IFCs this year. Almost one-third (29%) of individuals with more than $7m (US$5m) in investable funds are already using IFCs, with HNWIs estimating that around 44% of their personal assets are under such hubs.

In addition, IFC jurisdictions are seen by these individuals as particularly helpful for international asset protection (50%) stable law and policy (40%), and as a single administrative hub for international personal assets (37%).

Currently, 28% of Singaporean large corporates work with an IFC, with turnkey administrative support one of the key benefits cited. They estimate that over a third (37%) of their business assets benefit from using an IFC and expect to increase the volume of their assets using an IUFC by 29% in the year ahead.

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