The Variable Capital Companies Act provide for the incorporation, operation and regulation of new corporate entities called Variable Capital Companies. A Variable Capital Company (VCC) has two main defining features. The first is the ability to set up segregated cells or portfolios and the second is the ability to vary the company’s capital. These functions are set in place to enhance Singapore’s appeal as an international fund management hub. It is designed to compete with other jurisdictions which allow such similar functions when setting up investment funds. In a nutshell, Singapore is trying to domicile offshore funds by making it attractive for global fund managers to set up Variable Capital Companies in Singapore rather than in other jurisdictions.