How to invest in Thai Infrastructure Bond Funds ?

[buksida]

But is it really so difficult to give advice without coming across as an arrogant twat?

Maybe I am not the one needing medication...

Maybe we all need some meds dealing with certain people.

[Scout]

Excellent post TOM, that is exactly the type of step-by-step advice I was looking for. But I’m a bit confused on if I would need to sell my shares in time to let the money soak 3 months in the savings account, then have the bank draft a letter to immigration referencing my 800k in the savings account, or if I could leave the money invested in the investment account and have the bank draft a letter to immigration referencing the 800k in the investment account. Obviously I would prefer to keep the money earning high returns in the investment account, provided immigration accepts the banks letter referencing the value of that investment account. I realize it would be safer to liquidate the investment months in advance of the visa renewal date and not risk a last minute plunge in the NAV.

[Nereus]

The regulation states "a fixed account". It does not say that you have to have immediate access to the funds, savings or otherwise, ………………………………………...

The Thai regulation state quite clearly: "3 months in a Thai Bank savings account, OR, a fixed account in a Thai Bank.
Until it is changed, that is how it is.

[T.O.M.]

Excellent post TOM, that is exactly the type of step-by-step advice I was looking for. But I’m a bit confused on if I would need to sell my shares in time to let the money soak 3 months in the savings account, then have the bank draft a letter to immigration referencing my 800k in the savings account, or if I could leave the money invested in the investment account and have the bank draft a letter to immigration referencing the 800k in the investment account. Obviously I would prefer to keep the money earning high returns in the investment account, provided immigration accepts the banks letter referencing the value of that investment account. I realize it would be safer to liquidate the investment months in advance of the visa renewal date and not risk a last minute plunge in the NAV.

Immigration does not accept trading accounts.....End of story.

If you get your timing right, you might be able to get 3 dividends,before selling and moving your money back to your savings account.
2 normal dividends transferred into your savings account quarterly....and one extra 'dividend' by the price going up before the XD (x dividend) date....Example: Trading price today 10.00 baht...the closer we get to the XD date the price will probably go to 10.20.....this is where you sell. Normally after the XD, the share will drop back to 10.00 again.
Makes sense?
When you sell to move your money back, don't empty your trading account completely. Keep a small amount there to keep the account alive....To avoid the hustle of opening a new account when you go in again.

[PET]

Once again an excellent post TOM.
I see that the FUND is managed by BBL Asset Magt Co which is 75% owned by Bangkok Bank and this gives good comfort to my mind.I notice that until May 2018 the bond was valued around 11.75 but there was a significant dip in May to 10.0 and then 10.75 until the present 9.80, As you are selling out TOM for 3 months per year you must have surely been caught in some on this reduction in the JASIF bond value. Therefore the capital loss may have exceeded the dividend received?
I shall look towards putting in my wife's name and therefore avoid the dividend problem

[T.O.M.]

^^
Personally I don't go in and out...Just trying to give advice to the OP, who was planning to do just that.
I have had them since day one and added a little along the way...my average price is just under 10.00. Dividends received so far per unit is around 3.30 (15 payments)....so as long as the unit price doesn't drop below 6.70 I will be fine...
During my ownership I have seen the price fluctuate between 8.00 and 12.50....The extreme low at 8.00 was caused by the majority owner Jasmine (JAS) decided to bid for a mobile frequency licence, and won a licence (worth about 75 billion baht) and 'forgot' to pay for it....So the rumor was that they (JAS) would lose all their existing licences including JASIF's.....Eventually it was solved with a big fine.
The big drop in May 2018 was caused by the majority owner JAS (again) sold a big lot ( a trade worth about 5 billion baht) for 10.60 per unit at a time where it traded for 11.75. As I really don't care to much about the unit price, I took this as a confirmation of the the units were worth at least 10.60, if a big investor was willing to pay that.
JASIF is considered as a relative safe bet...almost boring, from a trading perspective, which (trading) is what I normally do. It has been my rock for the last almost 4 years. But as the above is a good example of...In Thailand it is never plain sailing, so there is risk involved even in a laggard stock like JASIF.

[PET]

^^
Personally I don't go in and out...Just trying to give advice to the OP, who was planning to do just that.
I have had them since day one and added a little along the way...my average price is just under 10.00. Dividends received so far per unit is around 3.30 (15 payments)....so as long as the unit price doesn't drop below 6.70 I will be fine...
During my ownership I have seen the price fluctuate between 8.00 and 12.50....The extreme low at 8.00 was caused by the majority owner Jasmine (JAS) decided to bid for a mobile frequency licence, and won a licence (worth about 75 billion baht) and 'forgot' to pay for it....So the rumor was that they (JAS) would lose all their existing licences including JASIF's.....Eventually it was solved with a big fine.
The big drop in May 2018 was caused by the majority owner JAS (again) sold a big lot ( a trade worth about 5 billion baht) for 10.60 per unit at a time where it traded for 11.75. As I really don't care to much about the unit price, I took this as a confirmation of the the units were worth at least 10.60, if a big investor was willing to pay that.
JASIF is considered as a relative safe bet...almost boring, from a trading perspective, which (trading) is what I normally do. It has been my rock for the last almost 4 years. But as the above is a good example of...In Thailand it is never plain sailing, so there is risk involved even in a laggard stock like JASIF.

Thanks well explained and understood.

[Scout]

I followed TOM's excellent advice and recommendations and obtained a securities trading account through Bangkok Bank. I visited my Bangkok Bank branch where I explained that I wanted to open a trading account so I could invest in stocks, bonds and mutual funds. The language barrier kicked in and even though the staff members spoke English, there was a misunderstanding, as the ever helpful young lady began to print out a large number of prospectuses for various mutual funds available through Bangkok Bank. After I realized what they were doing, and explained that I wanted to open an account so I could buy and sell shares on the internet, the process was relatively straight forward. After submitting a lengthy application form, and then waiting a couple of weeks, I received my login credentials via email. I've now experimented with the trading site, familiarized myself with it, learned how to transfer money back and forth between it and my Bangkok Bank savings account, and will shortly make my first trade. The new immigration rules requiring me to keep 800,000 baht in savings account for 5 months and then keep at least 400,000 in the same account for the remaining 7 months each year has removed a lot of my original incentive to invest in the Thai market, but I think I'll continue on and invest a modest sum so I can fully learn how the system works. Even if I become proficient and comfortable with it, the new immigration rules mean that instead of potentially earning dividends of around 8% on 800,000 baht for 9 months, I'll only be able to earn dividends of around 8% on 400,000 baht for 7 months. Regarding JASIF, TOM advised that in order for foreigners to receive dividends they needed to hold JASIF-F and recommended buying JASIF, then submitting a form and paying a small fee to convert them to JASIF-F. When selling, the same form and fee needed to be submitted to convert the JASIF-F shares back to JASIF, then selling the JASIF shares. I see on the dashboard of my trading account that I have the option to buy either JASIF or JASIF-F. I'm wondering if I should buy the JASIF-F shares to avoid having to submit the form and pay the minor fee on the first (buying) transaction ? Or if I should follow TOM's original advice, buy JASIF, convert them to JASIF-F, hold them, then convert back to JASIF prior to selling them. Any experience / advice on this ?

[Nereus]

The new immigration rules requiring me to keep 800,000 baht in savings account for 5 months and then keep at least 400,000 in the same account for the remaining 7 months each year

Can you please provide a link to where you have read this information? Thanks.

[T.O.M.]

^^
You don't really have a choice......There is almost NO trade in JASIF-F

Go to settrade.com......Check "Historical Quotes" for JASIF-F.......

[T.O.M.]

The new immigration rules requiring me to keep 800,000 baht in savings account for 5 months and then keep at least 400,000 in the same account for the remaining 7 months each year

Can you please provide a link to where you have read this information? Thanks.

Have a look here......

[musungu]

T.O.M. - I think your information on the JASIF Infrastructure Bond is excellent, so thank you very much because my bank were totally clueless about it !!
Although a buyer, I do not wish to trade in and out. I am interested as to how the payment of the dividend works. I think that when the bond go's XD this means that only holders before that date will receive the quarterly dividend. I see that when it go's XD the dividend usually follows some 10 weeks later. My question is when can you buy the bond to earn receipt of the dividend, is it any time before the XD date? If so it seems that the bond value will be lower after the XD date so a good buying time?

[T.O.M.]

^^
Normally the time between the XD-date and the actual dividend payment is TWO weeks....not 10.
And yes only the registered owners at the XD-date will receive the dividends.
If you plan to convert to F-stocks...remember to allow a couple of days for the change to made from local to F.
Personally I would buy BEFORE the XD-date.....if the dividend is 0.23 normally the units will go down 0.20.....Take the dividend and re-invest in more units at the XD-price.
Makes sense...?

[Scout]

TOM, Have you had any experience trading NVDRs ? I am wondering if this is a viable alternative to buying JASIF and then converting them to JASIF-F ? Also, on my Bualuang Securities trading page I have to select a “Type” when placing a trading order. The choices are MP, ATO, ATC, MTL and MKT. I know that ATO = “At the open” and ATC = “At the close”, but I am trying to confirm what MP, MTL and MKT mean for SET trades. Do you know what these trade types are ?

[Scout]

Here is an explanation of NVDRs.

https://www.set.or.th/en/trading/trade_in_set.html