How to invest in Thai Infrastructure Bond Funds ?

[Scout]

In another thread it was suggested that investing in a Thai Infrastructure Bond Fund, such as the Jasmine Broadband Internet Infrastructure Fund, was a good way to put your money to work earning returns until 3 months prior to renewing your retirement visa. The investments need to be sold and the money parked in a savings account for the final 3 months just prior to renewing your visa, immediately after which you can take the money from savings and reinvest in the bond fund for the next 9 months, then the cycle repeats. The Jasmine Broadband Internet Infrastructure Fund advertises an annual rate of return of 8.8%. I’m interested in doing this. I bank at Bangkok Bank and stopped by yesterday to discuss this with them. As usual, the language barrier got in the way. Once the very professional young lady understood that I wanted to invest, she retreated to the back office where she downloaded and printed a number of mutual fund prospectuses for me. I was unsuccessful in communicating that I already know which fund I want and only want their assistance in making the purchase. I ended the visit by confirming with them that I could log onto their site from home and research the funds myself. After doing that tonight, it appears that all that is on their website are various Bangkok Bank mutual funds. Is there anybody here that can advise me of the best way to proceed in buying shares of the Jasmine Broadband Internet Infrastructure Fund ? Are there other high return funds I should consider ? Are there any pitfalls to the broad plan I’ve laid out above ?

[lomuamart]

You're joking aren't you?
Firstly, I would imagine that Imm would question whether you have immediate access to the funds. If not, then forget it.
Secondly, Imm might be interested to know what you've been living off in between any pay outs.
Personally, I'd give it a miss.

[handdrummer]

I had a similar idea and my wife talked to her cousin, a banker, and his advise was to, for now, stay out of the Thai stock market, it's too volatile.

[oakdale160]

8.8% !! That sounds suspiciously high--are you sure its not a Ponzi?

[T.O.M.]

As usual a lot of comments from posters who haven't got a clue...

Immigration accept fixed deposit accounts, where you don't have immediate access to your funds without losing your "high" interest. JASIF is traded on the stock exchange every day. If you need money...you sell and the money is in your account a few seconds later. Anyway it is none of immigration's business, what we do with with our money, as long as the money is in the savings account the required time before extension.

As for the cousin "the banker"...He doesn't know, what he is talking about. In time of volatility, high dividend funds are considered a safe haven and normally don't follow the market down (or up for that matter). In my 15 years of trading here, I have never met a local banker/broker, who had even the slightest clue about the stock exchange.

As for the Ponzi theory. I had JASIF since the first day, they were listed. And in more than four years I have received my quarterly dividend like a clockwork. And since we are talking about an infrastructure fund...dividends are tax free.

To the OP: More information about JASIF here : www.settrade.com.

To buy and sell, you need to open a trading account and since you are with Bangkok Bank, I will recommend their trading arm "Bualuang".....Your local bank should be able to help you do that. When opening the account only deposit the minimum required amount to get an account...Because over the counter they charge a percentage of the transferred amount...the rest of your deposit you transfer via the internet for free.
With the money in your trading account, you log in and buy JASIF yourself.....trading commission is 0.15% (each way)
So your math will look like this: At today's price your 800k will buy you 80.000 units.....you will get 2 dividends....making sure the money is back in your savings account in time for extension......Average quarterly dividend is 0.225 baht = 80.000 x 0.225 x 2 (2 quarters) = 36.000 - 2.400 (commission) =33.600 in your pocket.
There is a little "but".....As a foreigner to receive dividend...you need to own JASIF-F (F is for Foreign)....there is hardly any trade in JASIF-F, so you need to buy just JASIF (local shares) and convert them into F shares. Easily done, just a form (can be downloaded) that need to be signed and a fee of 50 baht for the lot. When it is time to sell, you convert back to local shares using the same form. Sounds complicated but is really quite simple. You just need to know what to do yourself, because you will not get any assistance from your local bankers...they are clueless.
Hope this helps....Any questions, feel free to ask.

[dtaai-maai]

As usual a lot of comments from posters who haven't got a clue...

Could well be very useful advice you give - I wouldn't know because I don't need it, haven't read it and probably wouldn't understand it anyway.

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

[oakdale160]

I think that that was an excellent post from TOM, quite free from arrogance or twatism. I have to admit that I was one of the posters who didn't have much of a clue and am pleased to be corrected.

[oakdale160]

And whike I am online--What is your feeling about the Market TOM. the Dow and S & P seem to be trying a little half-hearted recovery.

[buksida]

Not sure if this is a similar fund to BAY's KFSDIV which is a SET linked index fund. https://www.krungsriasset.com/EN/FundDe ... und=KFSDIV

I've had one of those since 2013 and the gain is nowhere near 8.8% per year. Yes you get dividends but the NAV has gone down a lot since then (despite the SET hitting all time highs) so the principle decreases (not good for immigration even if they do accept it, which is doubtful). Overall, including dividends, it is up though but I couldn't tell you the percentage.

The KFFIND fund, which is bank related, has performed even worse over the same period as the country gets deeper into debt and people default on their loans (which have been handed out like candy by Thai banks).

Just do a lot of research before investing in these funds - if it sounds too good to be true it probably is.


Edit: will be researching myself, here is more on JASIF - http://www.jas-if.com/en/about/if/what

[Nereus]

Immigration accept fixed deposit accounts, where you don't have immediate access to your funds without losing your "high" interest. JASIF is traded on the stock exchange every day. If you need money...you sell and the money is in your account a few seconds later. Anyway it is none of immigration's business, what we do with with our money, as long as the money is in the savings account the required time before extension.

Yes, correct. Except that as it stands at the moment the funds do not have to be returned to a savings account. I use a fixed account and have never been asked for anything else, although I do take my savings account passbook with me.

You're joking aren't you?
Firstly, I would imagine that Imm would question whether you have immediate access to the funds. If not, then forget it.
Secondly, Imm might be interested to know what you've been living off in between any pay outs.
Personally, I'd give it a miss.

The regulation states "a fixed account". It does not say that you have to have immediate access to the funds, savings or otherwise, that is just something one officer has decided himself. With the current clown in charge this of course could change, but I think that it will have to go through whatever the current "government" is called before that happens.

[T.O.M.]

And whike I am online--What is your feeling about the Market TOM. the Dow and S & P seem to be trying a little half-hearted recovery.

If I only had a crystal ball...
IMO as long as Trump is president, we will see a lot of volatility in the markets.....a tweet can change the sentiment..

The latest correction has brought the prices down to a more reasonable level....but stocks are still expensive.
At the moment I am hedging my bets by buying 'Put-Warrants"...An instrument which speculates in the markets going down.....Since I am also in 'Call Warrants'......it is really (best case scenario) a zero game. But until the markets taking a clear direction, I am going to keep it that way.....The small gains you see in the US (and Thailand) at the moment is what I would call "a dead cat bounce"...The general sentiment is very muted, which is indicated by very low trading volumes.
As long as we realize, that the stock prices have nothing to do with the real world. we will be fine..

[Bluesky]

The taxation arrangements have recently changed in Thailand with respect to Bonds. Probably worthwhile to look at.

https://www.bangkokpost.com/business/ne ... -funds-tax

https://fundselectorasia.com/thailands- ... -fund-tax/

http://www.nationmultimedia.com/detail/ ... l/30358816

[T.O.M.]

Not sure if this is a similar fund to BAY's KFSDIV which is a SET linked index fund. https://www.krungsriasset.com/EN/FundDe ... und=KFSDIV

I've had one of those since 2013 and the gain is nowhere near 8.8% per year. Yes you get dividends but the NAV has gone down a lot since then (despite the SET hitting all time highs) so the principle decreases (not good for immigration even if they do accept it, which is doubtful). Overall, including dividends, it is up though but I couldn't tell you the percentage.

The KFFIND fund, which is bank related, has performed even worse over the same period as the country gets deeper into debt and people default on their loans (which have been handed out like candy by Thai banks).

Just do a lot of research before investing in these funds - if it sounds too good to be true it probably is.


Edit: will be researching myself, here is more on JASIF - http://www.jas-if.com/en/about/if/what

Firstly....What has immigration to with, what you do with your money between extensions...? The OP clearly states he wants to invest his 800k for 6-7 months between extensions and then return the money to the his savings account in time to meet the 3 months requirement.

As for the NAV of JASIF.....of course it is getting down. We are talking about cables/broadband for internet, and they are getting older, so of course the asset value is getting lower. But still trading above their book value per share...
Compare it to a car rental business.....The car is getting older, but as long as you get full rent...who cares?
And the dividend in JASIF is based on rent paid by Jasmine (JAS) and as long as they pay the rent, you will get your dividend.
I agree with you about doing due diligence before investing in anything....And with JASIF you should really look at JAS, who is the majority shareholder in JASIF, and maybe not the best managed company on the stock exchange...?
And if they for some reason not are able to pay their rent to JASIF.....No dividend
So in my opinion the trading price of JASIF or NAV is not very interesting...but the dividends are, and if they start to drop...maybe it is time to move on.

[buksida]

No need for the aggression and arrogance. Take a chill pill, the post was observational.

[T.O.M.]

No need for the aggression and arrogance. Take a chill pill, the post was observational.

Reread my post and IMO either aggressive or arrogant....
Maybe I am not the one needing medication...