Bank of Singapore is targeting Asia’s wealthiest clients with a new service that offers the advantages of a single-family office (SFO) without the associated costs.

Announced on Aug. 18, the Family Office Catalyst is designed for ultra-high-net-worth individuals with at least US$250 million in assets. Participants are required to input a minimum of US$20 million into a bank-managed investment vehicle. This vehicle qualifies for Singapore’s Sections 13O and 13U tax exemptions, which are typically reserved for licensed family offices.

This addresses a rising challenge for wealthy families: establishing and operating a dedicated family office has become costly and highly competitive. Lim Leong Guan, the bank’s global head of financial intermediaries, noted that many seek “more efficient solutions” amid increasing expenses and difficulties in recruiting investment talent.

The service provides clients with access to discretionary or advisory portfolio management, trust and wealth-planning tools and the option to transition to a full SFO in the future. The bank emphasizes its own success, citing a 14.2% year-to-date return for its Asia equity portfolio and an ESG mandate that has achieved over 20% annualized returns since 2023.

Singapore has strengthened regulations for SFOs, increasing staffing and compliance requirements. Competition is also intensifying among banks, including DBS and HSBC, to capture this market. For foreign firms offering legal, compliance, tech, or investment services, the Catalyst points to expanding outsourcing opportunities as wealthy families look for professional management without building in-house teams.