PHUKET: A little while back my article about litigation funding in general was published and at the time I was kind of sitting on the fence about the asset class.
One of my main hang-ups had been with the fact that generally the access to it that I had seen up to that point had been via structured notes, which had timing issues for a lot of my clients. In a response to my article I was pointed to a great fund within this space, and since then I have had a very positive response to it from just about everyone I have shown it to.
The Axiom fund provides loans to law firms trying non-frivolous lawsuits such as divorce, etc. As with the types of notes I had looked at before, all the cases are insured and there is also insurance taken out against the law firm should it fail. Thus, the protection is extremely high. The main difference is that there is no percentage split of the winnings from the cases, but this is balanced by them charging a slightly higher interest rate to the law firms.
The cases must be almost guaranteed to be settled, otherwise the insurance company will not underwrite the policy. The fund also has an average of about 1,500 loans out at one time, which means their portfolio of loans is highly diversified. Because the term of each loan is usually less than 12 months, this ensures basically the entire portfolio turns over every year and the rate at which the loans are repaid leads to extremely consistent returns for the fund. The standard deviation of returns is less than half a percent. This is even more remarkable given that the fund has averaged almost 12% per annum in its short existence (it is just over two years old).
The best part about this fund is that it is non-correlated with the financial markets and the world economy. I personally believe a 10% holding in just any portfolio provides an excellent buffer against falling stock markets or rising interest rates. I would not go too heavy into this fund as it has a short track record and is still a single fund manager, but I do believe there is not a risk profile out there for which this fund is not appropriate (with the exception of the cash under the mattress crowd).
The fund is available with a minimum investment of £12,500 through an offshore portfolio bond, and is very liquid. It deals monthly with a 30-day notice period. While it is run out of the UK and is based in pounds sterling, there are also USD and EUR tranches available. In a market such as we are currently in where bank deposits are paying virtually nothing in interest, a small allocation in this fund can give a nice little extra bit of return to your portfolio without taking an excessive amount of risk.
David Mayes MBA lives in Phuket and provides wealth management services to expatriates around the world, specializing in UK pension transfers. He can be reached at 085-335-8573 or by email at firstname.lastname@example.org.
— David Mayes
Fish sauce excluded from Thailand’s proposed tax on salty foods
PHOTO: Cook’s Illustrated
Thailand’s Excise Department and Public Health Ministry is considering a levy on salty foods in an attempt to tackle the sodium-rich diets of Thai citizens, and the health consequences.
The director general of the Excise Department, Patchara Anuntasilpa says the tax would be calculated based on the amount of salt in a product, with the proposal being sent to Finance Minister Uttama Savanayana by year end.
Fish sauce is a liquid condiment made from fish or krill that have been coated in salt and fermented for up to two years.:234 It is used as a staple seasoning in East Asian cuisine and Southeast Asian cuisine, particularly south east Asia and Taiwan. Following widespread recognition of its ability to impart a savoury umami flavor to dishes, it has been embraced globally by chefs and home cooks.
“If the tax is approved, we will allow entrepreneurs one or two years to reduce the salt content and launch a less-salty version of their product.”
The World Health Organisation and the UN both recommend taxing foods with a high salt content, saying increased sodium intake leads to high blood pressure, cancer and kidney and heart disease.
The Nation reports however, that while the proposal is to levy the tax on frozen and canned foods, along with processed items such as instant noodles, seasoning such as fish sauce and snacks like potato chips would be excluded.
The Federation of Thai Industries has pledged to cooperate with the government’s effort to improve the health of Thailand’s citizens, but its head Wisit Limluecha says he is not in favour of taxing popular seasonings, snacks, frozen or instant foods.
“Research has found that these foods represent only 20% of what we eat each day, and everyone has different eating habits, so the better solution would be to advise consumers on how to eat healthily.”
Wisit warns that the tax may damage the country’s competitiveness in the food sector both overseas and in Thailand, where imported products are easily available. He also voices concern that small businesses will suffer if unable to afford ingredient and packaging changes.
SOURCE: The Nation
500 people own 36% of equity in Thai companies
Roughly 36% of Thailand’s corporate equity is held by just 500 people, highlighting wealth inequality in the Kingdom, according to a study released by the Bank of Thailand’s research institute.
Each of these 500 amass some 3.1 billion baht (102 million USD) per year in company profits, according to the report from the Puey Ungphakorn Institute for Economic Research. In contrast, average yearly household income in Thailand is around 10,000 USD.
A report out this week from the Economic and Business Research Centre for Reform at Thailand’s Rangsit University also pointed to divisive and polarised politics being another root cause of the economic divide.
Thailand’s private sector is dominated by tycoons running sprawling conglomerates. According to the World Bank, the gap between the mega-wealthy and the rest of the Thai population of 69 million is among the many economic challenges for Thailand. According to Bloomberg, the perception of a divide, exacerbated by an economic slowdown, is a major political fault line.
“Magnates arise in Thailand from institutional factors that privilege certain businesses,” said the executive director of PIER, author of the study.
The institute said Thailand needs to promote competitiveness to reduce profits from monopoly power and bolster entrepreneurship to create a more equitable distribution of corporate wealth.
The research is based on analysis of 2017 Commerce Ministry data on the 2.1 million shareholders in Thai firms, and was funded by the University of California San Diego.
SOURCE: Bangkok Post
Thai Airways must modify rehabilitation plan to survive: Airline President
“Thai Airways will have to modify its rehabilitation plans to survive in the face of tight competition.” This frank admission by the airline’s president Sumet Damrongchaith.
The national carrier is now carrying a total debt of over 2.45 billion baht and losses of more than 20 billion, despite being able to reduce its debts by 48 billion baht over the past five years.
Sumet says the first step will be to restructure the airline’s management and finances as well as reconsider its plan to spend 1.5 billion baht on 38 new aircraft. He admits the biggest problem is that Thai Airways has low capital but a high debt-to-equity ratio of eight times.
In order to maintain its competitiveness, the carrier will have to reduce its debts versus assets and boost its working capital with support from the ministries of Transport and Finance. Hence, it plans to borrow approximately 3.2 billion baht in fiscal 2020 in line with the budget limit set by the Office of Public Debt Management.
This loan will be taken to support the airline’s investments as well as for its working capital, to update equipment and maintain existing aircraft, but will not be used to repay old debts.
The Nation also reports that the airline is also concerned about maintaining its liquidity because at the end of June this year, its revolving credit line stood at 13.4% of the total revenue forecast for 2019.
Sumet admits that, though the original rehabilitation plan has a set framework, the situation has now changed due to the appreciation of the baht, so in order to achieve goals, the work method has to be redesigned, such as finding a way to procure more passengers.
“We are now in the process of analysing new markets.”
Meanwhile, Thai Aiways’ board chairman Aek-Niti Nitithan-Praphas says the board is reconsidering plans to procure a new fleet taking into consideration the state of the global and domestic economies as well as the US-China trade war.
“The growth of the tourism industry and the airlines’ financial status needs to be reviewed in line with strong competition and routes that are no longer popular. It’s better to carefully revise the plan instead of exposing the airline to greater risk. The target should be reduce expenses by 20%.”
Meanwhile, Thai Airways aims to boost the sale of tickets, find ways of increasing online shopping of duty-free goods and reducing unnecessary expenses by 10%without affecting the quality of service in the last three months of 2019.
The airline is also negotiating the option of cutting down overtime expenses and is looking into curbing losses incurred by it’s semi-budget offshoot Thai Smile by increasing its flying hours to 10.5 hours daily. These steps are expected to help the airline reach breakeven point in the short term.
The airline is also considering long-term goals such roping in more passengers by offering greater benefits to Royal Orchid Plus members, focusing on digital marketing, retiring non-performing assets as well as increasing revenue from related businesses such as kitchens and aircraft repair centres.
SOURCE: The Nation
Top 10 things NOT to do in Thailand (2019)
Top 10 things to do in Phuket when it rains (2019)
Top 10 scams in Thailand (2019)
Top 10 spas and massages in Phuket
Top 10 news sources in Thailand (2019)
So you’re moving to Vietnam?
Immigration overhaul – TM6 disappearing and TM30 App being launched
14% of condos around Bangkok are empty – good time to buy
Voice TV report paints grim picture of Thailand’s tourism problems
Indonesia’s President Jokowi says he is “embarrassed” by fires
Patong Mayor hands out useless, cheap face-masks
Top 5 reasons why Aussies choose medical tourism in Thailand
Stricter controls and paperwork putting brakes on residential property market
British Instagrammer locked up in “filthy Bangkok cell’ over missing passport pages
Thailand’s changing tourist demographic – the Indians
Opinion: Retirees and medical insurance in Thailand
Indian tourist numbers to Thailand steadily climbing
Future Forward’s Thanathorn in court over alleged media share holdings
Royal Barge Procession on Bangkok’s Chao Phraya postponed to December 12
Local investor sentiment dampened by Brexit woes and slump in Chinese economy
Study shows most Thai people live hand to mouth
BTS thief and credit card skimmers arrested in Bangkok
Her Royal Highness Princess Sirindhorn hospitalised for infection
Convicted human traffickers ignore 99% of court orders in Thailand
Jump in national park visitor numbers as ‘winter’ arrives in northern Thailand
Now you see him, now you don’t… Patong Police hunt foreigner over $30k theft
Twin TAT campaigns will boost domestic travel
Thailand resume free trade talks with EU, reducing reliance on China
Powerful 6.4 earthquake kills five in the Philippines
The dangers of 5G – coming to a mobile phone near you
ชมวาทะเด็ดธนาธร ให้การศาลรัฐธรรมนูญ คดีวีลัค ทำงานการเมืองเพราะอยากเปลี่ยนแปลงสังคม
ตรวจหวย 16/10/62 รางวัลที่ 1 เลขท้าย 2 ตัว 3 ตัว เลขหน้า 3 ตัว และรางวัลอื่น ๆ
ตรวจหวย 16 ตุลาคม 2562 ผลสลากกินแบ่งรัฐบาล 16/10/62
ถ่ายทอดสด “สลากกินแบ่งรัฐบาล” 16 ตุลาคม 2562 ลุ้นรางวัลที่ 1 สด ๆ
หนุ่มแท็กซี่ฉาว ท้าต่อยเจ้าของธุรกิจเต๊นท์ กลางงานสนามหลวง
ไทยแชมป์วอลเลย์บอลอาเซียนกรังด์ปรีซ์สนาม 2 รางวัลรายบุคคล
ตรวจหวย1ตุลาคม2562 ผลรางวัลที่ 1 เลขท้าย 2 ตัว 3 ตัว เลขหน้า 3 ตัว และรางวัลอื่น ๆ
ถ่ายทอดสดหวย 1 ตุลาคม 2562 ลุ้นรางวัลที่ 1 สลากกินแบ่งรัฐบาล
สีจิ้นผิงกล่าวสุนทรพจน์ ครบรอบ 70 ปีก่อตั้งสาธารณรัฐประชาชนจีน -ลิงก์ถ่ายทอดสด
คลิปไฮไลท์วอลเลย์บอลเวิลด์คัพ 2019 นัดที่ 5
คลิปไฮไลท์ วอลเลย์บอลเวิลด์คัพ 2019 นัดที่ 1
Paramount เตรียมรีเมค FACE/OFF หนังบู๊ระดับตำนาน
ประยุทธ์ โต้ รัฐบาลไหนก็มีตำหนิทั้งนั้น “ถึงเวลาก็อ้างอย่างที่ผมอ้าง”
อารัมภบท รักฉุดใจนายฉุกเฉิน My ambulance ตอนแรก 6 กันยานี้
วอลเลย์บอลหญิงชิงแชมป์ยุโรป 2019 โฉมหน้า 4 ทีมตัดเชือกรอบรอง
- Thai Life1 day ago
Top 10 things NOT to do in Thailand (2019)
- Thailand1 day ago
Top 5 reasons why Aussies choose medical tourism in Thailand
- Opinion3 days ago
Buddhists call for boycott of Hilton & Waldorf Astoria Hotels with the opening of Siddhartha Lounge
- Bangkok3 days ago
The world’s fastest growing tourist destinations
- Road deaths3 days ago
Thailand road toll: 554 dead this month, 11,462 this year
- Environment3 days ago
Thailand’s swift response to the ‘fall armyworm’ pest
- Expats4 days ago
“Auf Wiedersehen” to overstaying German on Koh Samui
- Environment4 days ago
New controls on three toxic agri-chemicals take effect on October 20