Annual Report 2000/2001 Asset Management Enhancing Access to Domestic Funding Sources Over the last year, various initiatives were implemented to further develop the asset management industry. The CPFIS was liberalised.Investment restrictions on the CPF Special Account and CPF Minimum Sum were lifted, adding an estimated $35 billion to the investible pool. The SRS, a tax advantage vehicle announced in Budget 2000 for individuals to save for retirement over and above their CPF contributions was introduced, further enlarging the existing and potential pool of investible funds. Using the proceeds from the listing of SGX in November 2000, the Financial Sector Development Fund (FSDF) was set up to enhance talent and infrastructure to raise Singapore's standing as a financial centre. To achieve the long-term growth of the FSDF in support of the talent and infrastructure-enhancing projects, various asset management companies were appointed to manage the FSDF. MAS Fund Outplacement Exercise Following the announcement in 1998 that MAS would place out $10 billion to external fund managers for management, MAS has come to the tail-end of the funds outplacement exercise and identified most of the external fund managers for the fund. Fiscal Incentives The Approved Fund Manager 1 [AFM] incentive continued to see strong interest from new players. Five new companies were approved as AFMs. In addition, two fund managers were awarded the Enhanced Fund Manager 2 (EFM) status, bringing the total number of EFMs to six. The indigenous boutique fund management industry also saw further development. Three new boutique fund managers were awarded the Approved Boutique Fund Manager 3 [ABFM] incentive status, bringing the total number of ABFMs to six. 1 The AFM status allows fund management companies to enjoy a 10% tax rate on fee income from providing investment management or advisory services to foreign investors. In addition, investment income earned by foreign investors from funds managed by AFMs in Singapore is tax-exempt. 2 The EFM status allows established fund management companies managing at least $5 billion of foreign investors' funds in Singapore to enjoy tax exemption on the fee income from providing investment management or advisory services to foreign investors, on top of the incentives already enjoyed under the AFM status. 3 The ABFM incentive allows investment income earned by foreign investors from funds managed by ABFMs in Singapore to be tax-exempt. [Promotional Efforts] [Regional Treasury Centres/Operational Headquarters] [Equity and Derivatives Markets] [Debt Market] [Asset Management] [Electronic Financial Services] [Talent Development] [Regulatory Initiatives] [Developmental Initiatives] [Market Infrastructure] [Table Of Contents]