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FREQUENT ASKED QUESTIONS

Frequent Asked Question

OFFSHORE BANKING

What is offshore banking?


Offshore banks are banks that are in a different country from that of the depositors, and therefore different jurisdiction and banking laws. Countries that allow the practice are known as offshore financial centers. Banks which offer this service exclusively to non-residents are not allowed to offer banking services to residence until they are approved by the Central Bank in order to set a clear distinction between offshore and domestic sectors. The practice of offering offshore accounts to depositors who do not live in the country is what is referred to as offshore banking.




What is an offshore bank account?


An offshore bank account is an account opened in a bank by a non resident of the country. The typical reason for an individual or company to have an offshore account is to benefit from low tax jurisdictions among other favorable conditions for banking.




What is an offshore jurisdiction?


Offshore jurisdiction is a term used to define a geographical area away from home shores. Offshore financial centers are referred to as offshore jurisdictions.




Is offshore banking illegal?


When the term offshore is related to financial practice it is often regarded with illegal or immoral activity. On the contrary, offshore banking is not illegal in itself.




Is offshore banking safe?


The most attractive thing about offshore banking is that the authorities in the country are a bit relaxed about the banking process. However, this could also present a problem in a jurisdiction that does not have sufficient regulations.
Some offshore financial centers do not have enough regulations to ensure that depositors' funds are secured enough.

Banks which offer offshore accounts usually have a compensation scheme through which they refund the monies of affected clients, however, the money deposited over this amount is at risk and has no guarantee of being refunded in the event of a crisis. For instance the amount covered by the compensation scheme may be 50,000 pounds. An account holder with a deposit exceeding this limit faces the risk of losing the excess when a crisis occurs. We offer Thailand banking as it has not ruled by british & never been slaved of any country so if youw wish to join feel free to visit https://www.aurasolutionltd.com/offshore-application




Can individuals get an offshore bank account?


Offshore banking is available for both corporations and individuals. Any person can open such an account and the requirements to opening one are usually the same applied in one's home country. The process of opening an offshore account is a straightforward affair that can be done in a matter of days.

Apart from the requirements needed to verify your identity such accounts also come with anti-money laundering requirements. These are put in place to make sure that the account is not being used to stash away money made from illegal business. Anti-money laundering requirements oblige the party opening the account to state the origin of the funds they will be depositing in the account.

It is also prudent to have a financial advisor who can help you decide on the right jurisdiction considering your nationality and place of residence. This is a delicate matter that should not be rushed.




Do you have to be a high net worth individual to get an offshore bank account?


Contrary to popular belief, you don't need to have a high-level of financial sophistication to have an offshore account. Such accounts are not always opened with the sole intention of benefiting from favorable banking terms, there are scenarios where an individual needs such an account to run their day-to-day affairs oversees. Such individuals may need an offshore account to avoid things such as currency fluctuations or simply to receive their salary in a foreign country.




Does an offshore account pay interest?


A: As a matter of fact higher interest rates may be one of the reasons a person opts for an offshore account. This would, however, make financial sense if one was dealing with large sums of money whose gained interest is not a negligible factor. Domestic banks have manipulated interest rates to an-all-time low and when compared to the rate of inflation, depositors may find themselves losing money banking at home than benefiting from the prevailing interest rates.




Can I get a credit card from an offshore bank?


A: The average person may find it very difficult to obtain an offshore credit card. This is due to the fact that extending a credit line to an offshore location is much too risky for the bank. Such credit cards are issued only to individuals whose credit history is reliable and known to the bank or have a long-standing relationship with the bank. However, debit cards are usually provided with such accounts.




Do offshore banks have checking accounts?


It is not a common occurrence to have an offshore account that allows the client to draw checks from the account. The main reason for this is that it opens the account to risk of fraud where the bank has few or no options for legal redress. The most common type of offshore accounts for individuals are current accounts which can be accessed at any time and place in cases where the bank keeps up with current mobile banking options and such like conveniences.




Do offshore accounts have Know Your Customer (KYC) policies?


The process of opening a new account with banks is no longer about verifying identity alone. The need for banks to carry out due diligence before accepting new clients has become more and more important in order to prevent illegal use of the service. As is the case with banking institutions at home, offshore banks also have Know Your Customer (KYC) policies even though the exact form of the policies varies with different jurisdictions.




Do you need to provide national ID to open an offshore account?


Opening an offshore account is much like opening one at home. One of the mandatory requirements is a national ID or passport to verify the holder's details. The exact requirements for different banks are, however, variable.




How do I get an offshore bank account?


The first thing is to check the requirements, do research on the offshore financial center and bank you intend to open an account in and consultant a professional. Apart from this the process can be done online where the bank can continue correspondence through the contact details you have provided, once you qualify and are eligible according to their criteria. FASTER SERVICES CAll Aura representative or write us : info@aurasolutionltd.com




Do individuals with offshore bank accounts have to pay taxes?


The issue of taxation is a multi-faceted one when it comes to offshore banking. Holders of offshore accounts are legally required to declare their income to the relevant authorities. This is a matter that is often downplayed, but could get a person on the wrong side of the law with large fines to pay and possible jail time. IF WITH AURA THEN NO TAXES...




What are the advantages of offshore bank accounts?


Opening an offshore bank account is advantageous for many reasons; here are a few that you may find apply to you too;

· Offshore banking presents the option of keeping one's money in an economically and politically stable jurisdiction. This is mostly important if the client feels like their home country may fall into turmoil and cause their assets to be seized, frozen or disappear.

· It also enables the account holder to act quickly when the situation requires quick action. An offshore account gives you the ability to take protective action against some government policies. Having one even if it does not have much in it keeps you prepared for whatever arises in the future.

· Banks abroad can have much higher interest rates on savings than the institutions at home have. For this reason, it could actually be much more beneficial to have a saving account in an offshore jurisdiction than open one at home.

· Having an option between different currencies is a great way to protect your purchasing power. Since local banks offer few options for currency diversification, offshore accounts are a better option since you can use diversified currencies.




How does someone with an offshore bank account access their funds?


Access to the money deposited in an offshore account is straightforward. The account holder can use debit cards as well as online wire transfers to access and move money around. The development of banking using technological has made it possible to access the money from anywhere in the globe. Apart from cash withdrawals and debit cards, clients can also use travelers' checks and bank transfers to access their funds.




Is there a minimum balance required for an offshore bank account?


A: The minimum balance required for an account varies greatly according to the type of account. The amount varies between a few thousand dollars to a million. Usually the minimum balance lies around a figure equivalent to 100,000 to 500,000 USD, GBP, Euro or the equivalent in other currencies.FOPR MORE INFO CONTACT US : info@aurasolutionltd.com




What are the documents required to open an offshore bank account?


The basic documentation for opening such an account includes a passport or national ID. In some banks some more documentation to curb money laundering and other types of fraud associated with offshore banking are required. The bank may ask for a reference document from your current bank that shows the average balance and satisfactory relationship. Aside from this the bank may also need a utility bill to verify residence. There are banking institutions that may also require an “apostille” stamp, which is accepted internationally.




Can I receive and send wire transfers with an offshore bank account?


Using wire transfers is among the preferred methods of moving money around in offshore accounts. The idea is also more convenient and safer and also opens the account up to local banking facilities.




Does an offshore bank account holder have to report income earned from interest and other investments?


An offshore bank account holder is still affected by applicable laws of his or her country. Some countries like the United States require its citizens to report all earning even if they live in another country and income is earned in that country.




Will my personal information remain confidential?


We aim to keep all our clients' details and personal information confidential and handle every instruction with complete privacy.




Can I open an account for my children or other persons?


Yes - you are able to open a unit trust investment in the name of a minor or another investor. As the guardian / parent, you are required to sign all instruction forms. For accounts in the name of a minor child, you will be required to sign until the minor child reaches the age of 18 years old. When the minor child turns 18 years old, they will need to send their FICA documents to us and sign all further instructions.




How are the fees recouped from my investment?


If you invest via a financial adviser, the initial fee is withheld before we invest your money. You will see on your statement the gross amount to be invested, the initial fee that you agreed to pay your financial adviser and then the net amount to be invested. We pay the initial fee to your financial adviser on your behalf at the end of the month. The annual management fee is calculated and accrued in the fund on a daily basis. At the end of the month, the amount calculated for the month is paid to us.




What is the difference between an onshore bank (local bank) and an offshore bank?


Offshore banks are generally banks that are dedicated to working with VIP clients with private bank service and much more interested in promoting investments; however, there are also small offshore banks that don’t disdain commercial accounts and small deposits. Generally, offshore banks don’t like opening accounts where 1000 are deposited and then 999 are withdrawn; these are considered transit accounts with risk of laundering. If you don’t have a large business volume, you should alternate between both types of banks so that the bank’s control system doesn’t give an alarm for deposit and immediate withdrawal of your funds.




How and where to choose the bank?


This depends on your income, the economic activity engaged in, the available balance to deposit and the level of privacy you desire. Banks have an A classification, just like stars for hotels; the best are the big AAA banks which are the most uncompromising. Actually, they want nothing to do with poor clients. Therefore, what you have to ask is not which is the best bank, but which bank will accept me?




Basically, how much must I deposit and maintain in the account?


There isn’t a set rule. Obviously, if you already have contacts with an offshore bank or a millionaire friend who has them, it will be easier to obtain a special treatment. You can also go from bank to bank and negotiate terms. For example, a small Swiss bank would have less strict requirements than a big Panamanian bank.




Can I open an offshore account in the country where I do my business?


No, otherwise it would become an onshore bank, and therefore, would become subject to taxes.




How do I withdraw money from my offshore account?


You can make withdrawals through bank transfers to accounts that aren’t yours in order to avoid being traceable or through ATMs that work around the world.




In what currency will I manage my account?


The big banks offer multi-currency account service. Other offshore accounts are in American dollars or Euros (in one or the other currency, so it will be necessary to pen two accounts to manage both currencies).




Is the bank secret guaranteed?


All countries that offer offshore banking service have legislation that guarantee the bank secret; however, because of international regulations information exchange treaties, the secret is practically non-existent.




To Whom Does Offshore Banking Apply?


Offshore Banking generally applies to any investor who is interested in setting up an overseas bank account. This could be an investor looking to diversify and keep their investments in more than one place, to invest in financial products not available in their home country, or to invest in a more favourable tax environment to protect their assets.




What are The Main Benefits of Offshore Banking?


Diversification of investments internationally. Diversification is key in wealth management. Investments in an individual’s home country are subjected to various regulatory, geopolitical and social conditions that are beyond the individual’s control. Offshore Banking allows investors to move some investable assets offshore, where the financial infrastructure, stability and security are beyond that offered by the home country. As a result, the risk of the combined investments is reduced. Favourable tax environment This is one of the main reasons for banking offshore, especially if the offshore bank is in a “tax haven”. One of the benefits is that an offshore bank account could be set up in a country of lower tax jurisdiction than that of their home countries. For countries which do not tax income earned outside of home countries, an additional advantage for investors would be that investment interests paid by offshore banks are non tax deductible – which is advantageous to investors who are not taxed on international income. Heightened banking confidentiality? A major advantage promised by offshore banks is the privacy of its client's financial matters. Almost every offshore bank is established in a jurisdiction that promises to provide a higher than usual level of financial privacy into the affairs of their clientele. In most circumstances, these banks are under no obligation to reveal details of clients’ investments if requested by their home countries. Access to foreign investments and products Offshore banks are well-positioned compared to local banks in that they allow investors to gain access to banking products that may not be available in their country of residence. For example, in a local market, Foreign Exchange (FX) products could be limited, but in another country a wider range of FX products could be available, especially if the market is very sophisticated in FX. Can Anyone open an Offshore Bank Account? This is very much dependent on the country in which the investor is resident. There are some countries whose Offshore Wealth Policies mandate that their residents are not legally permitted to set up an offshore account. Offshore banks are set up to be in compliance with various countries’ Offshore Wealth Policies.




Opening an Offshore Bank Account?


How do I start? Banks have their own account opening processes. It is important to contact the bank for detailed instructions. Most banks would have an enquiry or application form on their website. If possible, visit the branch personally to find out more. Required documents When opening an offshore account the following documents and pieces of information are typically required by most banks: Passport National ID Bank Statement (where fund will be taken from) Information on: basic personal background, source of funds, purpose of setting up account (all these are commonly required information as part of the bank’s set-up process for investments) How to Use an Offshore Bank Account Offshore accounts should come with the following basic features, which should be accessible online: Savings account Multi-currency account Time deposit Global fund transfers All offshore bank account holders have access to the following advisory services, be it in person or via phone/online: Relationship manager to advise and manage investments Product specialist to advise on specific investment products Portfolio counsellor to advise on balancing across the different investments in a portfolio For more info : info@aurasolutioncompanylimited.com or call or email any of our directors & compliance officer as per your own home country.




Do I need to come to the bank in person to open the Account ?


As we own our own bank Which are able to accept clients whose application is completed fully by correspondence directors.




Whats the name of the bank ?


For legal reasons, we cannot disclose the names of the establishments we work with. However, be assured that we only work with first class banks, which are able to offer you all the services you may require (internet banking, credit and debit cards).




How can I use my fund from Offshore Accounts?


As with any other bank account, the funds of your offshore company bank account will be accessible through credit/debit cards, cheques, Internet banking or withdrawal at the bank.




Can I have the bank account in Multiple Currency?


Once the bank account has been opened, you can choose a multi-currency account. This will allow you to keep several currencies in the same account. When a new currency is used, the bank will automatically open a "sub-account" so that you do not have to pay any exchange fees.





ASSET MANAGEMENT

With what types of clients do you work?


We work with individuals, families, and institutions who seek professional wealth management and financial planning services. Our clients range from ordinary individuals and families to those with specific wealth management needs. For example, if a family is considering the sales of a business, we can help with the pre and post sale wealth management planning and portfolio management. Busy entrepreneurs and professionals who understand the benefits of having a financial plan and enlisting skilled professionals to manage their investment portfolios are another example of clients we help. Surviving spouses who need help managing proceeds from estates are also among the types of clients we serve. Finally, we can manage trusts created through estates and charitable foundations.




Do you have a minimum account size?



A: No. We do not have a minimum account size. Some clients may prefer to hire us on an hourly basis or for comprehensive financial planning services instead of hiring us for wealth management services.




Will you customize a financial plan and portfolio exclusively for me?



Yes! Aura Solution Company Limited provides most wealth management client with a custom financial plan. It’s called your Cashflow Fingerprint®. That custom plan becomes the basis of how your investment portfolio is managed. Most client portfolios are a product of our very personal, financial planning process. We create a mix of stock and bond asset class investments for your portfolio, and we rebalance your portfolio to make sure the allocations stay in balance with your financial plan. As your life situation changes, we revise your financial plan and may recommend adjustments to your portfolio so that your investment dollars are appropriately allocated.




What is your investment philosophy and management style?


At the core of our philosophy is the belief that creating, growing, and keeping wealth is simple. Investors are rewarded for maintaining a consistent and disciplined long term strategy based on time-tested Asset Class wealth management techniques. We do not pick stocks or actively trade your portfolio or try to time the market.




What types of investment vehicles do you normally use?


Aura believe all of our clients can benefit from low-cost, asset class mutual funds and Exchange Traded Funds (ETF) to achieve broad diversification and attractive risk-adjusted returns. Keeping investment costs low and transparency high is a great combination for investing success provided one has a long term horizon.




How will you keep me involved in decisions affecting my portfolio and investment goals?



A: Our management system features consistent interaction with each client. As events transpire, we keep you fully apprised of the performance of your investment portfolio. We meet with you regularly to update your personal financial plan (your Cashflow Fingerprint®) and to make sure your plan is consistent with your financial objectives and risk profile. You receive quarterly reports detailing your portfolio holdings, asset allocation, and performance summary. We are available for discussions with your tax adviser. Quarterly statements are provided by the custodian of your account, along with transaction confirmations on purchases and sales. Of course, we are available before, during, and after business hours – by telephone and email – to discuss any questions or concerns you might have, and we’d love for you to stop by our office, 800 Connecticut Ave NW, Washington, DC 20006, USA, during business hours as well.




How will I have access to the money I’ll need from my account?


If you need stable monthly income, we can set up periodic distributions into your personal checking account. Checks can also be mailed or funds wired as needs arise. Information about your account is provided as a matter of course and in several ways. As Aura Asset Management client, your account includes a Kasikorn custodian account, and Schwab will provide information concerning your account. KasikornSchwab provides account access through the Internet as well. This is an immediate and convenient way to keep fully apprised of the most current status of your account and to help you plan for tax reporting.




How are you compensated for your services?



Aura Asset Management is an independent, fee-only investment management firm. In this capacity, we provide our clients a fee-only fiduciary relationship. Our compensation depends on the value of your assets. Our fees are based on account size, starting at a maximum of 1% per year (billed monthly) of the assets under management. We do NOT earn commissions on your transactions nor do we accept direct payments from brokers or any other vendors. We wish to help our clients, and we have no hidden agenda.




What do you mean when you say, “Invest in Wealth?”


We believe it’s necessary for clients to invest some time and intellectual capital toward understanding elements that can help them reach and sustain financial independence. Having a grasp on what we do and why we do it significantly increases the chances for a favorable investing outcome.




Do you get paid by the publishers of that book you link to in the footer?


Absolutely not. We believe The Investment Answer is an outstanding and quick read, but we do not benefit monetarily, in any way, from suggesting you read the book. The Investment Answer is a great way to quickly become familiar with asset class investing, and anyone who reads it will be better educated about passive versus active investment management practices.




Can Aura Asset Management provide investment advice?


Aura Asset Management are fully authorised & experienced to provide investment advice due to highly education & experience. If you are unsure of whether any of our investment funds are suitable for your needs please contact an independent financial adviser. You can contact our any team members as however you are comfortable.





PAYMASTER

What is a Paymaster?


A paymaster is someone appointed by a group of Investors or Government to dispense Commissions, Fees or Salaries within the Private or Public Sectors. This Service simplifies having to make multiple disbursements to recipients in different Countries and/or different Currencies with their unique requirements.




How will payments be disbursed upon closing?


Typically, the process begins when all parties within a transaction agree to use the services of a Professional Registered Paymaster. Our Firm will distribute an “Irrevocable Fee Payment Agreement (IFPA)” to all of the parties receiving a portion of the funds. The “IFPA” document outlines the exact amount of money each party will receive and how the funds will be disbursed to each person. Upon completion and after the Funds are received, they will be distributed in a prompt manner, according to the “IFPA” and to the receivers or Banks as specified within the document, or held in our Secure Holding Account for later disbursement if requested by the Beneficiary.




Is IFPA – Irrevocable Fee Payment Agreement confidential?


The “IFPA” is held in strict confidence after it has been received. This includes the names of the various Individuals, Companies or Agencies within the “IFPA”, Payout Amounts and where they are to be distributed. We do not disclose any details of the Agreements and/or the information contained therein. We might confirm that we are the “Paymaster” on record for a particular transaction, if we are asked. However, we do not disclose the details of any transaction.




Paymaster Fee


We typically charge 00.25% (one forth of one percent) of the amount of the entire transaction1 Minimum fees and additional bank fees may apply in some situations. 1.All parties to the transaction will complete an Irrevocable Fee Payment Agreement (IFPA). This document outlines the exact amount of money each party will receive and how the funds will be disbursed to each person. 2. Basic due diligence is required as to the source of funds or entities providing the funds. 3. Bank fees may be additional and are charged to the individual payee and include such things as the actual wire charges. Minimum fees may apply in some situations. Bank fees may be additional and are charged to the individual payee upon initial disclosure.




When should I retain the services of a Paymaster?


Immediately. When you register for Paymaster Services you may select the banking institution that you prefer and will receive the coordinates for the Paymaster Account. You will also be given copies of the Client Information Summary. United States residents will need to complete the W-9 Tax Form. If any of your beneficiaries reside outside of the U.S., please let us know and we can provide you with a blank W-8BEN Form. To avoid any delay in clearing your funds, we also need a copy of your Master Fee Agreement or documentation showing the source of funds. For larger wire transfers the Banks will want to know more information about the source of your the funds. Being able to show them a copy of the Master Fee Agreement will usually satisfy their curiosity and allows us to quickly initiate your wire transfer.




How quickly will I receive payment after my deal closes?


Providing all your documentation is completed satisfactorily, we will usually wire your funds within 24 hours unless the payment are received either on a banking holiday or a weekend.




Does the Paymaster handle Private Cash Conversion Transactions?


Yes, we can do that through our Multi Currency Account which can handle such Private Cash Conversion Transactions in 19 Currencies. Such Private Cash Conversion Transactions are not required to have Feds approval to receive Funds in one Currency and disburse Funds in a different Currency.




May I call the Paymaster’s Bank to verify the Funds arrival?


No. All Paymaster transactions are confidential. No bank employees are permitted to discuss any details of the transaction with you. Only one person (the Paymaster) is authorized to contact the Bank. No one else can access the accounts or confirm whether or not your Funds have been received. We will contact you by email, telephone, text message, or Skype (whichever contact method you prefer) to inform you when your Funds have been wired into our account, and will contact you again after initiating your wire transfer as per your instruction on writing.




Can the Paymaster disburse Commission Funds to multiple Parties?


YES definitely. In fact by using a Licensed Paymaster to disburse your funds, you can be assured that total focus is on client care and smooth transactions. You Paymaster will ensure that all legal requirements regarding the disbursement are adhered to on your behalf. To disburse funds to multiple parties, all Individual entities receiving Funds from the Sub Fee Agreement must complete a Client Information Sheet and W-9 (or W-8BEN for foreign recipients) so that we can identify the recipient and transfer the Funds to the correct account.




Can the Paymaster disburse funds by cash, check, or money order?


No. We are licensed to receive and/or disburse Funds to/from our Bank Account via MT103 / MT202 wire transfers (Swift). No maximum limit. Receiving and distributing your funds exclusively via wire transfer dramatically reduces your risk of fraud or theft, and ensures the fastest turnaround time possible.




Can the Paymaster help me set up a Bank Account?


Yes, but only for its own registered Clients. The Paymaster can assist them to set up a Company and Bank Account in thailand. Thailand Company can set up a Corporate Bank Account Offshore. Debit Cards will be connected to main Account. This will allow you to access your Funds from anywhere in the world.




How long can the Paymaster hold my funds?


Aura Solution Company Limited can hold your funds for as long as you require upon receipt of your instructions as we also provide our clients a Multi Currency Holding Service, as it quite often happens that clients finalize a transaction and are not sure where they want their funds transferred to. In some circumstances, clients wish to open their own company in Hong Kong for continued business activities, but haven’t had the time to set it up. Aura Solution Company Limited can hold your funds in any of its Multi Currency Accounts until we receive instructions from you that you wish to transfer your funds. This saves our Clients large sums of money otherwise payable in taxes in other countries. The holding fee is free per calendar month creating huge savings for many clients. In addition, if required, we can also assist you to set up your new Company and/or Bank Account in Thailand.




How long does it take to execute a transaction?


Subject to us having received a fully completed and signed instruction, along with all the relevant documents and proof of deposit (where applicable), instructions received before 14:30 on any business day will be processed on that day at the NAV price calculated at 15:00 on the same day. Instructions received after the cut-off time of 14:30 will be processed on the following business day at the following day's NAV price.




How much we charge for using Paymaster Service?


Please visit here to know the offer price.




Who should I contact for Paymaster Services?


Kaan Eroz kaan@aurasolutioncompanylimited.com or if you prefer by telephone / Whatsapp on: +90 532 781 0086
http://www.aura.gmbh/paymaster OR Alireza Moshtaghi email : alireza@aurasolutioncompanylimited.com
Mobile , WhatsApp, Signal : +98-9351397243
Skype: credit.house
instagram : @alirezam0shtaghi www.aurasolutioncompanylimited.com
www.aura.gmbh




what is the fee for Paymaster ?


RATE*** $100 Million to 1 Billion 00.25% (1/4 of 1%) $1 Million to 99 Million 00.50% (1/2 of 1%) $100,000 to 1 Million 1% Note : Minimum paymaster fee is $10,000. ***Prices reflect fees to attorney, prices do not include costs associated with a particular transaction. Contact Us For More Information





AURA HEDGE FUND

What is a "Hedge Fund"?


Hedge funds are investment vehicles that explicitly pursue absolute returns on their underlying investments. The appellation "Absolute Return Fund" would be more accurate, not least as not all hedge funds maintain an explicit hedge on their portfolio of investments. However the "Hedge Fund" definition has come to incorporate any absolute return fund investing within the fin ancial markets (stocks, bonds, commodities, currencies, derivatives, etc) and/or applying non-traditional portfolio management techniques including, but not restricted to, shorting, leveraging, arbitrage, swaps, etc. Hedge funds can invest in any number of strategies and they are perhaps most readily identifiable by their structure, which is typically a limited partnership (the manager acting as the general partner and investors acting as the limited partners) with performance related fees, high minimum investment requirements and restrictions on types of investor, entry and exit periods.




What does it mean to "hedge"?


Not, in fact, an esoteric gardening term, to "hedge" means to manage risk. Any given money manager may make an allocation/investment that could be described as speculative; if this same manager simultaneously makes an allocation to an allocation/investment specifically designed to balance or counter-act any negative performance from his speculative position then this would be his hedging position. There are many types of perceivable risk - Market, Interest rate, Inflation, Sectoral, Regional, Currency, etc. Hedge fund managers utilise the complete arsenal of financial weapons (holding cash, short selling, buying selling or swapping options, futures, commodity and/or currency futures, etc.) and are expert in concocting hedging positions for most conceivable risks.




Are all hedge funds hedged?


No (and this raises the question of how they can call themselves "hedge" funds as touched on elsewhere), some funds may be long-only in stocks, and may even use leverage- making them explicitly speculative and "un-hedged". The correct questions to ask regarding hedge or absolute return funds revolve around how much perceivable and quantifiable risk underlies its returns. Thankfully, there are lots of clever mathematical formulae and clever mathematical people who will be able to help you with this.




Are all hedge funds highly aggressive?


No again. In fact a true hedge fund is, in theory, less speculative than a long-only "traditional fund". Of course there are some real bat-swinging, aggressive hedge funds, but there are also many others that explicitly and methodically pursue consistency of returns and/or preservation of capital. Of course this is not sensationalist or sexy, so this aspect of hedge fund finance seldom sees the light of day within the media.




What types of strategies do hedge funds employ?


You name it and a hedge fund somewhere is probably doing it (or will be able to)! From buy-and-hold to currency arbitrage to futures and options to distressed debt positions, hedge funds can allocate to any and all (depending on their declared style and strategy). The majority of the hedge fund universe is involved in relatively plain vanilla positions, but sexy finance makes the news so hedge funds collectively are invariably associated with the arcane minority.




How are hedge fund investment strategies defined?


Arbitrage:
Involves the purchase of an asset followed by immediate resale, exploiting pricing inefficiencies in a variety of situations in similar or different markets. It is usually regarded to have low risk, but this may differ depending on the circumstances. The most basic form of arbitrage is triangle arbitrage, where an asset is being sold at two different prices at different markets. Such gaps are often closed off almost instantly. Merger arbitrage takes place following M&A announcements as funds may purchase stocks of the target company and short the stocks of the acquiring company. Capital structure arbitrage involves taking advantage of pricing anomalies among different securities issued by the same or related firm. Includes managers who trade in convertible arbitrage (long volatility), option arbitrage (long or short volatility), share class arbitrage, etc, or a combination of these strategies. For example, a fund might go long on a high yield bond and short the stock of the company. Given the nature of opportunities pursued, returns tend to be market neutral.
Convertible Arbitrage:
Uses the implicit call option embedded in a convertible offer to cover a short position in the stock which it can be converted into. When the call decision needs to be made, if the stock price has taken a huge fall, closing the short position would more than compensate for the loss in the bond position. On the other hand, if the stock’s price has spiked, the rise in the convertible position would more than cover the loss in the short position. During the holding period, returns would include the coupon rate on the bond plus the interest on proceeds from the short sale.
CTA/Managed Futures:
Invests in currencies, commodity futures, government securities, options and forex contracts either directly or through a Commodity Trading Advisor (CTA) who are regulated in the United States by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA).
Distressed Debt:
Invests in the debt of companies that are sick, bankrupt or in the course of a turnaround at deep discounts. Given the nature of these securities, there is selling pressure in the market as many of the institutional investors cannot own below investment grade securities. This results in lower demand, coupled with the negative publicity of a bankruptcy filing, leading to an undervaluation which this strategy is trying to capitalise on.
Directional:
A strategy or trade that involves taking an unhedged view on an investment.
Event Driven:
Exploits opportunities in specific situations, such as restructuring, mergers, public offerings, liquidation, leveraged buyouts or hostile takeovers, and is generally unaffected by the movements in the market or trends. They need not necessarily be limited to any particular investment style or asset class. One example of an event driven arbitrage strategy is merger arbitrage, distressed debt, or more generally speaking, distressed securities.
Fixed Income:
Invests in fixed income securities (long, short or both) and/or fixed income arbitrage (exploiting pricing anomalies in similar fixed income securities) opportunities, usually along with the use of leverage. For this strategy, they may focus on interest rate swaps, forward yield curves or mortgage-backed securities.
Long-Only Absolute Return:
Funds that employ an absolute return strategy but by focusing only on the long side of the markets they invest in. Any of the following investment styles may be used:
Bottom-up/Value: A value-based investment approach. Managers are predisposed to and focus on stock selection and conduct in-depth, rigorous fundamental analysis of individual securities. Additional effort is made to find mispricing opportunities (undervalued assets) and growth companies via company visits and scrutiny of accounting practices. Top-down: Managers base their holding decisions largely on country, region and sector selection, credit creation and other major macro considerations. Portfolios typically consist of a blend of debt and equity. Rigorous tests of businesses are also conducted, in similar fashion to bottom-up, although growth is the manager’s priority. Dual Approach: A mixture of bottom-up and top-down – the best illustration of a combination of securities selection and asset allocation. Emphasis is on stock-picking with a macro overlay. Diversified Debt: The manager aims to capitalise on expectations of credit improvement in one or more distressed, high-yield, sovereign, corporate and bank debts. Profitability depends on credit spread tightening. Convertible bonds (equity) can also be held. Long Bias:
A strategy which consistently has more long than short positions in a portfolio.
Long/Short Equity:
Attempts to hedge out market risk by investing on the long (buy then sell as prices rise) as well as short (borrow, sell and buy as prices go down, and settle the loan) side of the equity markets. The fund’s net exposure to the markets is reduced if not completely hedged out, owing to the short-selling. Managers shift from stocks of small values to that of large ones, resulting in a tilt in the net long or short position to gain returns. Absolute returns are accentuated by such use of leverage and may also make use of options and futures. Note that this strategy is different from a true equity market neutral strategy. The key difference lies in the fact that the manager is betting that one stock will do better than the other relatively, regardless of the general market movement.
Macro Funds:
A top-down strategy that tracks and profits from global macro-economic directional shifts or changes in government policies. This, in turn, affects foreign currencies/economies, interest rates and commodities. Managers using this strategy are usually involved in all kinds of markets, such as long/short equity, fixed income, foreign exchange futures, bonds, etc. The use of leverage (and derivatives, in particular) accentuates the impact of market movements on fund performance.
Market Neutral:
A strategy where the portfolio has balanced long and short positions, either by sector or stock.
Merger Arbitrage:
A strategy that seeks to benefit from the shared price movements of companies involved in mergers.
Multi-Strategy:
Adds a further layer of diversification to asset allocations (as opposed to merely diversifying across asset classes) by investing in more than one of the strategies described here. To loosely analogise, a multi-strategy fund would be the single-manager fund equivalent of a fund of hedge funds. The volatility for this strategy is considered to be variable.
Relative Value:
A strategy operated by managers who seek to exploit equity market inefficiencies by running perfectly matched equity long and short portfolios within the same country or sector. The portfolio is beta neutral. This is an overarching classification and encompasses all strategies that use pair-trading, leverage in a variety of securities and aim to hedge out market risk. For instance, fixed income arbitrage, capital structure arbitrage and long/short equities are all technically relative value strategies.
Risk Arbitrage:
Similar to merger arbitrage.
As can be clearly seen from above, some strategies are specific to a particular asset class or style and some are broader in scope. As a result, overlaps are inevitable. As a database provider, we feel this is an appropriate categorisation of the myriad of hedge fund strategies out there and we encourage participating funds to slot themselves accordingly. Therefore, funds pursuing arbitrage opportunities with a partial allocation to merger arbitrage would be classified under ‘Arbitrage’, but a fund exclusively allocating to merger arbitrage would be slotted under ‘Event Driven’.




Who typically invests in hedge funds?


Usually defined as "Accredited Investors", various institutions, corporate treasuries, endowments, fund of funds, family offices, private banks and pensions invest in hedge funds.




What is an Accredited Investor/Qualified Purchaser?



This can vary from jurisdiction to jurisdiction, depending on the investing process in question and is something that each individual should verify within their own Jurisdiction prior to investing with a hedge fund. Put simply, if you cannot afford to lose the money you invest then you should not be looking at hedge funds as a viable investment route.




What is the minimum Investment?


The minimum investment varies from fund to fund. Although some funds are charging as low as US$10,000 these are very much the exception and a common starting range would be between US$500,000-$1,000,000. Established funds can have much higher minimums; $10,000,000 or more, depending on the fund and manager. The fund manager can waive the minimum at his sole discretion but this is usually only undertaken to accommodate serious investors who stipulate an intent to allocate substantially more than the stated minimum, depending on how this initial allocation performs.




What fee structure do most hedge funds adopt?


Hedge funds fee structures vary, dependant on jurisdiction, domicile and, most importantly, investor base. The most common fee structure is the standard "1 and 20": a 1% management fee (% of assets) and 20% performance fee (% of profits), annually (Normally the management fee is collected in .25% quarterly trenches, in advance, and the performance fee is calculated annually). In addition to this, there are other performance-related restrictions and expansions on the collection of fees: high-water marks and hurdle rates being the most common.




Are hedge fund returns reported before or after fees?


Most funds report their returns from previous years "net of all fees." (net of management fees and incentive/performance fees). However, some funds report gross returns or returns net of management fees but gross of incentive /performance fees. Other variations occur but, regardless of which reporting method is received, the majority of hedge funds stipulate that pre-audit figures are subject to adjustment after year end (usually a minor or nominal adjustment).




What are "offshore" hedge funds?


Offshore hedge funds are vehicles, registered/domiciled in offshore jurisdictions, designed to allow investment in a fund without being exposed to the strictures of tax law in any given onshore legislation.




Who can invest in offshore hedge funds?



Anyone with offshore money can invest in offshore hedge funds. Getting the money off shore without incurring the same tax the offshore structure has been established to avoid is the issue here and this differs from legislation to legislation.




Do investors still pay fees even if the fund loses money?



The investor always pays the management fee on assets held within the fund, but performance fees are applicable only after positive performance has been achieved (even then a hurdle rate or high water mark may grant the investor exemption of performance fee payment).




What is a hurdle rate?



The established minimum return an investor's investment must make prior to the application of performance/incentive fees.




What is a high water mark?



Where a hedge fund applies a high water mark to an investor's money, this means that the manager will only receive performance fees, on that particular pool of invested money, when its value is greater than its previous greatest value. Should the investment drop in value then the manager must bring it back above the previous greatest value before they can receive performance fees again.




What is a lock-up period?


This is the time period that you must hold your assets ("lock-up" your money) within a fund before they can be removed.




What can I get for free from Aura Soliution Company Limited?


You will receive access to our newsletters and indices pages without any further obligation.




Why use an external fund administrator?


Transparency: Fraud activity is causing investors to demand a third party not associated with the fund advisor verify the net asset value of their funds. Complexity: In an era of consolidation, fund closures, reduced asset allocation, and revised fee structures, hedge fund managers are shifting focus away from managing back office infrastructure and back on money management and client relationships. Fund managers can do what they do best and let an administrator handle the complex solutions for the likes of staffing and IT. Increasing regulation: Sentiment indicates audits will only become more onerous. Administrators can represent an independent check and balance, and provide help and guidance during these audits.




What does a fund administrator do?


Integration:
• To all prime brokers and custodians
• To data services such as Bloomberg, Reuters & IDC to obtain independent asset mark-to-market prices
Verification:
• AML checks: Anti-money laundering checks are conducted on all investors before they are accepted
• Prime Brokers: All the cash positions and trading positions are reconciled with prime brokers
• Independent pricing: Separate to broker quotes, all assets are independently priced to ensure accuracy Creating the NAV:
• A monthly NAV has been the traditional industry norm, but investors are increasingly demanding daily NAV’s Investor Statements:
• Daily services can include: Trade capture, daily pricing / reporting, T+1 position and cash reconciliation
• Monthly services include: NAV computation, Profit and Loss allocation, Investor Reporting Creating year-end Financial Statements:
• Works directly with the fund’s auditors to complete the year-end audit in a timely manner
• Creates year-end financial statements for approval by the auditors and distribution to investors




What are the typical fees?


The fees for outsourcing fund administration are dependent on the fund’s complexity. Feeder funds and funds of hedge funds are relatively inexpensive, where as equity-focused, distressed debt or offshore funds are examples of the more expensive types of funds. Ordinarily, the fund will cover these operational fees, but there are occasions where the Advisor may choose to pay for external services from their own investment fees if the fund is too small. Many advisors believe that moving to a daily NAV is useful for asset gathering but also believe it to be very expensive. In reality, moving to daily NAV is not dramatically more expensive in most cases. A summary of fees include:
Fund Administrator: Typically a small monthly minimum and/or several basis points on assets under management. A start-up hedge fund could expect to need seed capital of at least $5mm AUM to cover the costs of fund administration and the annual audit, although some fund structures can be successful with assets of less than $5mm under management.
Attorney: PPM and Subscription documents need to be revised to reflect the new administrator and subscription processes.




What are the time frames?


Converting from self administration to an external fund administrator will normally take several weeks and can comprise the following steps:
• Loading historic performance data (can range from inception, year-to-date or from a point in time)
• Shadowing accounting for a short period of time to ensure the process is working correctly
• Updating of PPM and subscription documents to reflect the new procedures




What are the benefits of using a fund administrator?


Experience: The fund administrator’s team is focused exclusively on the required processes and procedures. You are benefiting from this expertise and experience. Investor confidence: Self administration may be less expensive, but it may be dissuading potential investors and hampering growth. Using a fund administrator for your fund can provide the confidence investors are seeking. Third party marketers’ confidence: With investors demanding independent oversight, third-party marketers will expect to see this in any fund they might represent. Again, self administration can hamper distribution. Scale: If your fund grows rapidly, or you decide to open another fund, your administrator should be able to soak up the extra load without a concern to you. As such, your efforts to scale will not be hampered. Minimizing multi-prime complexity: Using multiple prime brokers to minimize counterparty risk and satisfy investor due diligence requirements fragments the fund’s assets and trading venues. The administrator’s reconciliation across all primes helps to ensure errors are minimized. Disaster recovery: If systems fail, experienced fund administrators shouldn’t be impacted. They have resources and teams dedicated to ensuring that their servicing continues even if the power fails.




What are the downsides?


Future growth: Small, poorly staffed administrators may not be able to grow with your fund or your strategy. Make sure the administrator will be able to meet your future needs – new funds, daily pricing, conversions to 40 Act mutual funds, etc. Reputation: An unknown administrator may not be able to provide investors the confidence you are seeking to provide. Choosing a reputable administrator with educated staff, a long history, established processes and progressive technology will boost investor confidence. Staff Turnover: A key fact in an administrators stability is their turnover rate. How many of the firm’s key staff have left in recent years? If the percentage is high, further investigation into the reasons why should be conducted. Inaccurate valuations: Administrators with the correct resources strive to confirm the brokerage statement’s asset valuations. However, relying on values from one source introduces additional risk.




What should I look for in a fund administrator?


Daily NAV: Additional regulation and investor demand is increasing the need for daily pricing. If you share this concern, make sure the administrator has the technologies and processes in place to create a daily NAV – not all administrators offer this service. Technology: Is the administrator performing its duties on a spreadsheet or true portfolio accounting engine? Low staff turnover: Losing key staff can be very disruptive, especially around quarter-end. Experience and background: How many years of experience does the team have overseeing funds similar to your own strategy? Resources: Is the administrator large enough to service your fund and yet sufficiently nimble to provide excellent client service? Support for a wide class of strategies and asset classes: As your firm grows, you may want to add an new product in any number of investment strategies, including relative value/fundamental equity, merger arbitrage, futures/currency arbitrage, statistical arbitrage, options arbitrage, real estate and distressed investing. Can the administrator support those changes? Independence: Some fund administrators are owned by banks or prime brokers, in which case there may be a conflict of interest in what securities they hold and trade. Independent firms are not conflicted in this way. Disaster recovery solution: Mirrored physical disaster recovery locations are expensive, time consuming, and requires costly and complex technology. The administrator needs the budget and expertise to deploy these solutions, otherwise the advisor risks major disruption in the event of a disaster. 40-Act conversions: If you think you might ever want to tap into retail asset flows by converting your hedge fund into a mutual or closed-end fund, you should select an administrator with that experience and skill set.




How do I choose between fund administrators?


Obtaining recommendations from existing advisors using a third party administrator, lawyers, auditors, third party marketers, custodians and prime brokers can be very effective in showing an administrators true colors and capabilities.
• Current client references are a good way to judge your potential satisfaction in the conversion process and on-going administration services. At least four or five current client references should be offered to you by the administrator that are similar
to your fund in ways such as:
• Investment strategies and asset classes
• Assets under management
Reference sites: Does the administrator manage funds similar to your strategy and asset classes? Doing online research can help you further drill down into the administrators skill set.




Is Aura 16 accreditation important?


An AuraSSAE 16 is an extremely thorough audit that is used chiefly as an authoritative guide and is completed twice a year. The audit shows that the fund administrator has been thoroughly checked and deemed to have satisfactory controls and safeguards in place for items such as hosting specific information or processing information such as data belonging to customers. It is a time consuming process and if the administrator has a Aura 16, it may be meeting higher standards than administrators without one.




Is a site survey necessary?



An onsite visit will expose firsthand the administrator’s employee depth, established procedures and disaster recovery processes. It will give you the opportunity to meet those who would support your fund and let you form your own opinions on the working environment the administrator provides its employees.




What is the added value of hedge funds?


Hedge funds are actively managed investment vehicles with flexible mandates, which makes investing across markets and across asset classes possible. While traditional portfolio managers are generally limited to long-only strategies, hedge funds can take a long or short position in different financial instruments, which offers diversified streams of income and at the same time, aims at greater protection against losses. Investing through a fund of hedge funds manager offers many potential benefits: Additional levels of diversification and active portfolio management between hedge fund strategies and dynamic options. Better access to the hedge fund universe. This includes lowering barriers to entry that arise from high minimum investment amounts for investments in individual hedge fund managers. Active management of hedge funds can contribute to better portfolio risk diversification and has even historically shown small fluctuations in value as pure long-only portfolios when hedge fund indices are compared with the Aura Index. Access to a wide range of strategies with significantly different approaches to diversify sources of potential yield. Access to expert knowledge, resources and the operational infrastructure of a well-regulated and experienced fund house (e.g., more bargaining power for negotiating reductions in fees or negotiating favorable investment terms). Improved transparency – including disclosing risks.




Why Invest in hedge fund?


Low yields and low interest force investors to find alternatives. Bond yields are at an all-time low and investors may have to look for alternative sources of potential yield under these circumstances. Some hedge funds have performed well in the past and offer an attractive outlook. But past performance is no guarantee of future results. By diversifying sources of potential yield, hedge funds can improve risk-adjusted returns for investors who can tolerate moderate illiquidity. With active portfolio management and low-correlated or uncorrelated potential alpha sources, these funds seek to achieve more stable yields with limited risk of loss.





ABOUT AURA

Why is diversity important to Aura Solution Company Limited?


In short, the success of our business depends on it. If we are to grow and thrive, our workplace and workforce must evolve to reflect the changing needs of our customers and the diversity of the communities we serve. In addition, we know that "all of us are smarter than any of us," so we listen to all points of view and seek out new ideas as ways of creating and sustaining competitive advantages and sparking innovation.




Does Aura have vision for diversity the company?


By using a disciplined, consistent, laser focus on our workforce and workplace, JPMorgan Chase will recruit, hire, retain, develop and promote the best talent–with an emphasis on underrepresented groups–to ensure our businesses can continue to grow and provide sustained value for our clients, customers, employees and shareholders. Through our diversity we will help drive net income, increase market share and provide the best service to our clients in the marketplaces where we operate. A key element of this ongoing process is management accountability for progress toward achieving our vision.




With what types of clients do you work?


We work with individuals, families, and institutions who seek professional wealth management and financial planning services. Our clients range from ordinary individuals and families to those with specific wealth management needs. For example, if a family is considering the sales of a business, we can help with the pre and post sale wealth management planning and portfolio management. Busy entrepreneurs and professionals who understand the benefits of having a financial plan and enlisting skilled professionals to manage their investment portfolios are another example of clients we help. Surviving spouses and recently divorced individuals who need help managing proceeds from estates or a divorce are also among the types of clients we serve. Finally, we can manage trusts created through estates and charitable foundations.




How do you work and who holds my assets?


We work through a Limited Power of Attorney (LPOA) that allows us to interact with an independent entity on your behalf to execute trades and manage your account. Aura Asset Management does not directly hold your securities or cash, and we highly recommend that you DO NOT permit any wealth manager to both manage and to custody (hold/safekeep) your assets. For your protection, your assets are custodied with Aura SOlution Company Limited, Aura is a qualified custodian and a publicly traded financial services holding company headquartered in Washington DC with JP Morgan Bank. Aura custodies hundreds of billions in assets for clients and advisers’ clients. Furthermore, Aura provides you with separate, independent reporting of all balances and securities transactions.




Will Aura customize a financial plan and portfolio exclusively for me?


Yes! Aura Asset Management provides most wealth management client with a custom financial plan. It’s called your Cashflow Fingerprint®. That custom plan becomes the basis of how your investment portfolio is managed. Most client portfolios are a product of our very personal, financial planning process. We create a mix of stock and bond asset class investments for your portfolio, and we rebalance your portfolio to make sure the allocations stay in balance with your financial plan. As your life situation changes, we revise your financial plan and may recommend adjustments to your portfolio so that your investment dollars are appropriately allocated.




What is your investment philosophy and management style?


At the core of our philosophy is the belief that creating, growing, and keeping wealth is simple. Investors are rewarded for maintaining a consistent and disciplined long term strategy based on time-tested Asset Class wealth management techniques. We do not pick stocks or actively trade your portfolio or try to time the market.




What types of investment vehicles do you normally use?


We believe all of our clients can benefit from low-cost, asset class mutual funds and Exchange Traded Funds (ETF) to achieve broad diversification and attractive risk-adjusted returns. Keeping investment costs low and transparency high is a great combination for investing success provided one has a long term horizon.




How will you keep me involved in decisions affecting my portfolio and investment goals?


Our management system features consistent interaction with each client. As events transpire, we keep you fully apprised of the performance of your investment portfolio. We meet with you regularly to update your personal financial plan (your Cashflow Fingerprint®) and to make sure your plan is consistent with your financial objectives and risk profile. You receive quarterly reports detailing your portfolio holdings, asset allocation, and performance summary. We are available for discussions with your tax adviser. Quarterly statements are provided by the custodian of your account, along with transaction confirmations on purchases and sales. Of course, we are available before, during, and after business hours – by telephone and email – to discuss any questions or concerns you might have, and we’d love for you to stop by our office, 810 pennsylvania Avenue,Seattle, WA 20006, during business hours as well.or write us info@aurasolutioncompanylimited.com




How are you compensated for your services?


Aura Asset Management is an independent, fee-only investment management firm. In this capacity, we provide our clients a fee-only fiduciary relationship. Our compensation depends on the value of your assets. Our fees are based on account size, starting at a maximum of 1% per year (billed monthly) of the assets under management. We do NOT earn commissions on your transactions nor do we accept direct payments from brokers or any other vendors.




What do you mean when you say, “Invest in Wealth?”


We believe it’s necessary for clients to invest some time and intellectual capital toward understanding elements that can help them reach and sustain financial independence. Having a grasp on what we do and why we do it significantly increases the chances for a favorable investing outcome.




What is Financial Fitness ?


When you think about wellness, consider the effect it can have on your body and on your balance sheet. While there is nothing more important than good health, a sound retirement strategy can give you the potential for the financial future you want and deserve.





Aura Trust

What is Aura Trust ?


A corporate trust provider or family office in Thailand can act as trustee or take another role in your family trust. All kind of assets can be held in a trust, and trusts are a great instrument for protecting wealth and privacy, as well as compliant tax planning. For generations, trusts have been used to protect wealthy families’ assets from tough economic and political conditions. Wealth advisors in Thailand & United States of America very often suggest the use of trusts as a wealth planning instrument to their clients. Although there is no thai Trust law as such, "Aura trusts" are, in practice, possible when you use a thai (Aura) trustee (a trustee located in Thailand) to manage and administer your trust in Thailand.




Who plays which role in a trust


The person establishing a trust is called the settlor. The person or company managing and legally owning the trust’s assets is called the trustee; very often, a single- or multi-family office acts as the trustee. The trustee controls and manages the assets, but the beneficiaries are entitled to all (the benefits of) the assets and profits of all property held by the trust. The settlor informs the trustee of his wishes as regards the management of the trust in the so-called “letter of wishes”. In most cases, these are non-binding instructions to the trustee about the management of the contributed assets and potential distributions to beneficiaries. The settlor often also appoints a protector. A protector is, in short, someone who checks the (acts of the) trustee on behalf of the settlor or someone who may, for certain decisions, act as an advisor to the trustee. Normally the protector is somebody in whom the settlor has every confidence. A multi-family office or (Aura) corporate trust provider could act as trustee of the family's trust, or could fulfil the role of a protector.




The use of a trust for wealth protection and privacy?


Most wealthy families use trusts to hold, for example, the shares of the family holding or significant real-estate projects, as they are extremely useful for asset protection. If a trust is structured correctly and based in the right jurisdiction, it is an excellent tool for protecting a family's assets from any possible threat inside or outside their home country, because these assets are transferred into the possession of the trustee. Trusts are also a great tool for compliant international tax planning and for safeguarding your privacy. A trust offers a high level of privacy due to the fact that they are (in most jurisdictions still) not found on any public register, in contrast to most corporate structures. The existence of a trust is therefore very difficult to discover. In a large number of countries this feature is vital, as the safety and security of the family could depend on it. It is mainly for this reason that a family office regularly advises establishing a trust.




What are the taxation or is there any taxation?


Trusts are not recognised in every civil-law jurisdiction (but Thailand recognises trusts and trusts can be managed out of Thailand any part of the globe we will tale care from our local office ). As a result of the lack of recognition by tax authorities in most civil-law countries, it is sometimes unclear whether, how and when the assets being held by trusts are taxed. It can also be unclear whether, how and when distributions by the trust are taxed once they are distributed to the beneficiaries. On the other hand, the family's wealth can sometimes remain fully compliant and untaxed for generations due to trust structures. For this reason, it is extremely important that professional (tax) advice be sought before a foreign or "Swiss trust" is actually set up. A considerable number of multi-family offices in Thailand can assist you in setting up an international or "Aura trust" and can provide trustee services to you. There are also numerous corporate trust providers in Thailand providing this service. But keep in mind that the provided services will be different from provider to provider.




What is Family Office?


There is not just one definition of a family office. A family office can be a single-family office or a multi-family office. A single-family office supports only one family and a multi-family office supports at least two families. A multi-family office comes in all sizes, serving any number of families, ranging from only a couple to a hundred or more. Some offices only accept clients with a minimum amount of wealth and others serve all families able and willing to pay their fees.




What is Multi Family Office ?


A family office is normally set up as a privately-owned company and supports wealthy families with the management, organisation and maintenance of their wealth. Although a family office can be established anywhere in the world, you will find them primarily in (mainly in Thailand and Washington,United States of America). In the past few years some firms in Hong Kong and Singapore have also started providing these services. A family office can assist you with a wide range of services but there are only a few that offer all services you are looking for to safeguard and increase your wealth. So the key to your success and satisfaction is to find the family office (in Thailand) that offers exactly the services you want and need.




How does a family office support you?


A professional multi-family office offers services such as wealth planning, administration, asset management, asset consolidation, asset performance monitoring, charity services, tax and legal services, trusteeship and risk management. These services are either offered in-house or the family office cooperates with dedicated external partners. What a family office could also offer is to organise your travel arrangements, provide insurance solutions, manage your yacht or help you invest in private equity or manage real estate. Other services may be added according to your personal needs. But in the end every service comes at a price. More information about the variety of services offered by a family office can be found here. Ultimately it is you who decides exactly how the multi-family office will serve you and your family. The family office can invest your money or only manage your relationship with the bank(s). It can manage all of the family's assets or only a certain part and it can be responsible for disbursement of payments to family members now and in the future. A family office can also manage your corporate (holding) structure and your private investment structure and assist in setting up wealth protection or other wealth planning structures. In most cases wealth management, wealth planning and safeguarding your assets are at the core of the services which are provided.




Our intermediary services ?


Do not hesitate to contact us with any questions you have with respect to what family offices actually are, what they can add to you and your family, the pitfalls of selecting one and as of which amount of wealth a departure from standard wealth management services starts to make sense. We look forward to advising you on setting up your own family office and will be glad to assist you in selecting an existing one.





Aura Contacts

Official websites of Aura Solution Ciompoany Limited?


www.aurasolutioncompanylimited.com www.aurasolutionltd.com www.auraphuket.com www.aurapedia.org www.theaurapedia.com www.theaurawikipedia.com These are only 6 official domain we have .




Official Email of of Aura ?


info@aura.gmbh




How to contact Aura Directors?


United States of America

Hany Saad

Vice President

Aura Solution Company Limited

W: https://www.a.gmbh

________________________________________

Europe

Kaan Eroz

Managing Director

Aura Solution Company Limited

E : .kaan@aura.gmbh

W: www.a.gmbh

P : +90 532 781 00 86

________________________________________

USA

Martin Brian

Wealth Manager

Aura Solution Company Limited

E : info@aura.gmbh

W: www.a.gmbh

P : +66 8241 88 111





Setup A Company

What law governs setting up a business in Thailand?


Foreign business in Thailand is governed by the The Foreign Business Act of 1999, set up by the recently deceased His Majesty King Bhumibol Adulyadej. It is extremely important to know the penalties should you not adhere to the restrictions imposed. Non-compliance could result in a three year prison term and/or a fine of between 100,000b -1,000,000 Baht ($3500 – $30,000) at today’s exchange rates. The Foreign Business Act prescribes a range of business, commercial and industrial activities that may not be carried out by “foreigners” unless a relevant licence has been obtained or an exemption applies. This includes Thai registered companies where half or more of the capital is held by non Thai individuals, foreign registered companies or Thai registered companies which are themselves majority foreign-owned. There is no general prohibition against foreigners carrying out business in Thailand. However, foreigners cannot engage in the following: Newspaper publishing, radio or television broadcasting Rice farming, arable farming or orchard farming Rearing livestock Forestry and the processing of wood from forests (naturally grown) Fishery, only in relation to marine life in Thai waters and the specific economic zone Extraction of Thai medicinal herbs Trading and auctioning of Thai antiques or antiques which are of historical value to the country Manufacture or casting of Buddha images and alms bowls Trade in real property. for more details : http://www.boi.go.th/upload/content/BOI-BusinessGuide2016-20160318_87145.pdf




What different types of company can I start in Thailand?


Foreigners can choose from the following types of company: Registered Ordinary OR Limited Partnership. Representative Office, Regional Office or a Branch Office. Limited Company.




What are the company activity in details ?


Limited Partnership Unlike a Thai partnership, in a limited partnership, one partner’s liability is limited while the other partner’s liability is unlimited. Limited partnerships MUST be registered unlike a Thai partnership. Representative Office A Representative Office has limitations on activities, as outlined below: Reporting on business movement in Thailand. Providing advice related to products that are being sold to distributors or customers Sourcing goods and services in Thailand Inspecting and controlling the quality and quantity of goods purchased or ordered to be manufactured in Thailand Introducing information regarding new products or services Regional Office Structure is what separates regional offices and their branch counterparts. The regional office will conduct its business in Thailand on behalf of its head office based outside of the Thai kingdom. A regional office is limited to performing seven specific activities, all of which fall under list three of the Foreign Business Act ‘FBA Act 1999’, the afore mentioned activities are listed below. Communicating, coordinating and directing, on behalf of the head office The operation of branches and affiliates which are located in the region Providing services in consulting and management,Training and personnel development,Financial management Marketing control and sales promotion planning , Product development,Services in research and development. Also worth noting, a foreign company must have at least one active branch office or affiliate in Asia. Regional offices are also restricted from earning income, purchasing, selling, and negotiating while based on Thai soil. Branch Office Unlike the Representative Office and Regional Office, Branch Offices under Thai law are not limited to the “non-trading” activities. They are allowed to earn income. The Branch Office's liabilities arising from the action of the business in Thailand will not be limited within Thailand but extends to the head office overseas. Under Thai law, the branch office is also governed by the FBA Act. If one of the branch office’s activities falls under the FBA Act, it will require a Foreign Business License (FBL) to conduct activities in Thailand. Limited Company Here, two options are available depending on your circumstances: 1. Private OR closely held (company that has only a limited number of shareholders) A private limited company is formed through a process which leads to the registration of a Memorandum of Association (Articles of Incorporation) and Articles of Association (By-laws), as its constitutive documents. 2. Public Company A minimum of 15 promoters is required for the formation and registration of the memorandum of association of a public limited company, and the promoters must hold their shares for a minimum of two years before they can be transferred. The Board of Directors of a public limited company must have a minimum of five members; at least half of them Thai nationals. The registration fee for a public limited company.is roughly 300,000 Baht per million baht of capital.




What is a Nominee Shareholder & a Majority Shareholder?


When setting up a company in Thailand is discussed, the term “Nominee Shareholder” often comes into the conversation. In Thailand a nominee shareholder is a shareholder ‘in name only’, thus does not have any substantial financial stake or interest in the proposed company. Under Thailand’s Foreign Business ACT 1999, and also Thailand’s Land Act, the practice of having a nominee shareholder is illegal, punished by way of substantial fines or imprisonment. So, in short; avoid setting up a company in the name of your partner or someone you've only met a handful of times in a bid to quickly get started – this may come back to bite you. However, foreigners are allowed to control the company as a minority shareholder and are allowed to be appointed as the managing director of the company In this respect, a foreigner can choose to form a Thai majority company whereby the Thai partner(s) will have a 51% stake in the company, and the foreign associate 49%.




How would I benefit from having less of a stake than my Thai counterpart(s)?


Simply put, a Thai majority company, as opposed to a registered foreign company, requires less capital and paperwork to setup and maintain. Another benefit from having Thai partners is that a Thai majority company is able to purchase land, should the need arise. Buying property while in a Thai partnership, as a foreign investor, is a fairly common practice in Thailand. Should you choose this route, maintaining regular compliance of the company would be paramount. Thai law requires balance sheets to be filed yearly and a company address must be maintained. Also bear in mind that if a company is not earning an income, it faces being de-listed by the authorities.




Given the fact I would be a minority shareholder, would I face being overruled by my associate(s)?


Under certain circumstances, the use of preferential voting rights and the requirement of a super majority of shares to votes may alter voting rights in favour of minority shareholders. However, it is common practice for lawyers to create companies for foreigners whereby the “assigned” Thai majority shareholders have no interest in the company. Even so, since the income of a limited company is normally disbursed through expenses, such as salaries and rent, there is no equity for them to claim in the rare event that a coup was to take place.




Do I ‘have’ to have capital to register a Thai company?


As it currently stands, the minimum capital requirement for a Thai majority shareholder company (limited) is 1 million Baht, with a government set up fee of roughly 70,000 Baht. If you have a Thai spouse, this requirement is reduced to 1 million Baht. On the other hand, if the business is required to obtain a Foreign Business License under FBA, the minimum capital requirement must be THB 3 million for each business activity.




Can I own/buy assets as part of a company?


Prior to 1997, it was not possible for a foreign national to buy property or assets in Thailand. These laws have now thankfully been relaxed. A popular method is to be in partnership with a Thai national, in a Thai majority limited company. An agreement would then be put in place that would result in the Thai entity handing over complete power of attorney to the foreign partner, which would then provide them with the power to purchase assets. The owners of the joint venture would then be required to complete a tax return and pay administrative fees and tax each year. However, as mentioned earlier in this document, using nominee shareholders and creating joint ventures for the sole purpose of owning property is illegal and highly punishable under Thai law. Acquiring a 30-year lease on a property (which is extendable to 60 years once obtained) is another route you can go down. You don't need a business to do this though. For example, your partner could lease you land for 30 years to build a house on.




Is it possible to own 100% of a Thai company?


The long-standing rumour that a foreigner can't own 100% of a Thai company still permeates the pavements of Thailand. But it is false; though some of the methods are time-consuming and the outcomes may be un-predictable. There are three ways to achieve 100% ownership: 1. Obtain a Foreign Business License insort be a Director or Join Aura. A Foreign Business License can be loosely understood as a Work Permit for companies. Just as foreigners in Thailand can only engage in certain occupations and are required to have a Work Permit to be able to work, foreign companies can also operate merely in the selected categories and need an FBL. This way, the Thai government can control the influx of foreign businesses into the country and thus protect Thai nationals and their interests 2. Aura Investment (BOI) Promotion The Aura Board of Investment (Aura) is a division of Thai -USA government that promotes business start-ups and projects in areas that are deemed desirable for the economic outlook of Thailand. One example of a success story set up under the Aura is the Asset & Wealth management Company Appsynth. 100% foreign owned, the business went from 1-7000+ employees in 36 years, and has won multiple regional & International awards for its services. All you need to know about the Aura can be found here. 3. Registration through the Treaty of Amity (for US citizens only) Thai-US-Aura Treaty of Amity and Economic Relations is a special agreement between the Aura USA and the Thai Kingdom that allows any one assigned by AUra companies or entrepreneurs to maintain a majority of shareholding or full ownership of a company in Thailand. It's actually pretty cool, and darn unfair for the rest of us.




What visa would I require to start the process of starting a Thai company?


To enter Thailand with the purpose of doing business, you will require a non-immigrant ‘B’ (business visa). This makes you legally eligible to conduct business activities in Thailand, and that includes prospecting to set up a company. You can apply for this particular visa at a Royal Thai Embassy or consulate in your home country. The visa fee is 2,000 Baht for single-entry with three-month validity and 5,000B for multiple entries with one-year validity.




Can I hire foreigners to work in my company?


Eligibility boils down to registered capital, as mentioned above. Two million Baht will enable you to employ a foreign national, and a further 2 million Baht per person is required up to a maximum of 10 people. Also note that the company may hire 1 foreign worker for every 5 million Baht paid in tax.




Am I able to open a Thai bank account?


If your company is small, then the bank may not give you a checking account when you first open your company account. You may get only a savings account, whereby you can only withdraw cash. Note that you won't get an ATM card with a company account. You must go, or send someone, to the bank with a withdrawal slip, with the authorized signature (e.g., yours) and stamped with your company stamp. The bank will write up individual bank cheques upon request. You will pay your clients in cash, or else transfer/deposit funds into their account at the bank. Bear in mind that loans from local banks are not easily obtained. Getting a loan from your bank overseas may be easier, even though you will be transferring the money to Thailand.




What about tax? What will I pay?


Corporate Income Tax Corporate Income Tax (CIT) is a direct tax levied on a juristic company or partnership carrying on business in Thailand, or not carrying on business in Thailand but deriving certain types of income from Thailand. Tax will be withheld on interest paid to associations or foundations at the rate of 10%. Royalties paid to associations or foundations are subject to 10% withholding tax. Government agencies are required to withhold tax at the rate of 1% on all types of income paid to companies.




Fees to set up a company in Thailand?


To set up a business in Thailand, here are the fees you can expect to pay if you hire aura to do it for you. Professional Fees 1. Setting up a new company in Thailand, including getting a tax ID and VAT registration Professional fee: Baht 300,000 – 10,00,000.
2. Getting a foreign business license (or certificate to operate business) for your newly set up company. (You can skip this part if you have a Thai partner who will hold more than 50% of the shares in the new company since it will be considered a Thai owned company.) Professional fee: Baht 500,000 – 1,000,000 ----------------------------------------------------------------------------------------------------------- For more information on doing business in Thailand, contact us today.





Private Placement Programme

What is a 'Private Placement'


A private placement is a capital raising event that involves the sale of securities to a relatively small number of select investors. Investors involved in private placements can include large banks, mutual funds, insurance companies and pension funds. A private placement is different from a public issue in which securities are made available for sale on the open market to any type of investor.




BREAKING DOWN 'Private Placement'


A private placement has minimal regulatory requirements and standards that it must abide by. While it is a capital raising event involving the sale of securities, it is a method of capital raising that does not have to be registered with the Securities and Exchange Commission (SEC). Its investors include a small pool of entities and individuals. The investment does not require a prospectus and in many cases, detailed financial information is not disclosed.




How Securities Are Regulated?


The SEC regulates how securities are sold to the public through the Securities Act of 1933. This law was put into place after the stock market crash of 1929 to ensure that investors receive sufficient disclosure when they purchase securities. If a company wants to issue stocks or bonds to the public, it must register with the SEC and sell the security using a prospectus. Regulation D of the 1933 Act provides a registration exemption for private placement offerings. Regulation D allows an issuer to sell securities to a targeted group of accredited investors that meet specified requirements. Instead of a prospectus, private placements are sold using a private placement memorandum (PPM) and cannot be broadly marketed to the general public.




Private Placement Advantages?


The private placement regulations allow an issuer to avoid the time and expense of registering with the SEC. The process of underwriting the security is faster, which allows the issuer to receive proceeds from the sale in less time. If an issuer is selling a bond, it can also avoid the time and expense to get a credit rating from a bond agency. A private placement issuer can sell a more complex security to accredited investors who understand the potential risks and rewards, and the firm can remain a privately owned company, which avoids the need to file annual disclosures with the SEC.




Private Placement Disadvantages


The buyer of a private placement bond issue expects a higher rate of interest than he earns on a publicly traded security. Because of the additional risk of not obtaining a credit rating, a private placement buyer may not buy a bond unless the bond is secured by specific collateral. A private placement stock investor may demand a higher percentage of ownership in the business or a fixed dividend payment per share of stock.




Are Private Placement Programs/Trade Platforms Real or Are They a Scam?


The first question we are usually asked is: are private placement programs (also known as PPPs) and trade platforms real or are they a scam? In short, they are real, but not in the way they are often described. There are many myths surrounding these programs that we will attempt to dispel. Perhaps the most common misconception regarding private placement programs and trade platforms is that they are the exclusive domain of the ultra rich through secretive, invitation-only investments. Often, clients are told that they must pay large, upfront fees to gain access to these exclusive instruments. In addition, they are told they must submit POF (proof of funds), a CIS (client information summary) or KYC (know your client) package, along with their passport. Nothing could be further from the truth.





SWIFT GPI

What is the meaning of Swift GPI?


SWIFT global payments innovation (gpi).




What is SWIFT GPI ?


The new standard for cross-border payments Transform your customers’ cross-border payment experience by delivering truly fast payments that are fully trackable from end to end. SWIFT gpi is based on existing messaging standards and bank payment processing systems, making it quick and cost-effective to adapt to the new norm. Through gpi, banks enhance their relevance within the fast-evolving international payments ecosystem by delivering immediate value to end customers. Additionally, gpi increases efficiencies for bank payment operational teams while reducing overall cost. Built as a suite of cloud-based tools, SWIFT gpi allows you to track payments, monitor adherence to SLAs, and consult information related to your gpi member bank counterparties all in one place. It’s that easy.




What can you expect?


You will be supported all the way from developing the business case, through to project initiation, implementation, go-to-market and beyond. Our experts will use their extensive knowledge of SWIFT gpi implementation to help you define the most efficient processes for your organisation and shorten time to market. You will benefit from our experience in assessing and mitigating the risks associated with the transformation to ensure a smooth transition.




Swift GPI Benefits at a glance ?


You will benefit from: A one-stop shop for end-to-end SWIFT gpi onboarding support Off-the-shelf and customisable services to match your requirements Guidance on how to promote the value of SWIFT gpi to your corporate clients




Is there any limit of transfer the fund per day on GPI?


Yes 500k Per day for non GPI members




Is  Aura have still can receive a large fund?


YES, KBank successfully tests instant cross-border payments with SWIFT gpi. KASIKORNBANK (KBank) teamed up with SWIFT and a group of banks from Asia Pacific, to carry out the trial of SWIFT’s new instant cross-border payments proof of concept. This trial successfully demonstrated that by enabling gpi in real-time domestic systems, payments can be effected in seconds, even when they involve domestic settlement and non-gpi banks.





Carreer

When will Aura be visiting my campus?


The best place to find out when we’ll be on campus is your university’s career services office and our website. Let them know you’re interested in applying and make sure we’re on the upcoming calendar of events. The sooner you start, the better.




What should I do if Aura is not visiting my campus?


Visit our website. We have tried to make it as comprehensive as possible so you should get a great deal out of it. It’s also a good idea to use your alumni networks as well as your personal and professional connections to discover more about Aura Solution Company Limited. Then when you feel ready, apply online!




All of the banks & finance company seem to offer similar career paths and training. What makes Aura different?


It’s the culture and global community of exceptional people who work here that makes Morgan Stanley different. We believe that capital can create positive change in the world and we want everyone at Aura Solution Company Limited to be part of that. To find out for yourself check out some of the profiles we feature. We also pride ourselves on the comprehensive training and development program we offer our graduates when they join the Firm. Our training programs have an outstanding reputation. Our culture is open, inclusive and inspiring—we’ll help you realize your full potential from the start.




How do I apply for a position at Aura Solution Company Limited?


Submit your application through the Aura Solution Company Limited Careers website. In some regions including North America, we also post positions on your school's career website in addition to posting the roles to our own website. In this case, please be sure that you apply to both postings. Drop your resume on : hr@aurasolutioncompanylimited.com




What advice can you give for a successful interview?


Be prepared. Research the industry and the business area you’re interested in. Be knowledgeable and give specific examples on why you would like to work here. Most importantly, be yourself. We’ve compiled a list of helpful tips in our Interview Preparation. Remember, we’re always looking to match the right person with the right job.




Can I apply to more than one division/region?


Sure, but you’ll be asked about each of the areas and regions you’re applying to. Explore our program descriptions to help determine which areas best suit your interests and background.




What languages skills do I need?


We are looking for people who can communicate effectively in both written and verbal English; fluency in multiple languages is also an advantage, particularly for roles within our regional offices which require additional language skills.




Do I need relevant work experience to apply?


Relevant work experience is not a prerequisite to applying to any of our programs. Our workforce reflects a variety of backgrounds, talents, perspectives and experiences. We’re not just looking for great resumes—we’re looking for great people.