Leopard Capital Welcomes VGZ Zurich

The recent inter-Governmental spat over the provenance and legal ownership of a temple located on the border between Thailand and Cambodia, and the consequent deployments and counter deployments of troops, has reawakened memories most thought best forgotten, of the anti Thai riots of 2003 when the Thai Embassy in Phnom Penh was burned and the offices of many Thai businesses were ransacked. What bought these earlier riots about? A minor Thai actress was reported to have said she believed Angkor Wat to be Thai. Khmers hold Angkor Wat close to their national hearts and view the complex as the very symbol of their cultural identity, so the views attributed to the actress were seen by the Khmers as hugely provocative words from a daughter of a large and bullying neighbour. Relations between the two countries have always been if not delicate, certainly delicately managed. The roots of the current dispute go back to the 1950s when Cambodia was a French protectorate and French maps showed the temple as being on the Cambodian side of the border. Thai maps showed the opposite. When the French left Cambodia in 1953, the Thais, no longer facing a large western power, occupied the cliff on which the temple stands. Cambodia subsequently severed diplomatic relations with Thailand and lodged a complaint with the World Court in The Hague and in 1962 the court ruled that Prasat Preah Vihear belonged to Cambodia. The Thai King ordered that the Court's decision be accepted and there has been a somewhat sticky but well managed and non violent truce ever since. Unfortunately, Thai domestic politics then came into play as parties opposed to the Government of Samak Sundaravej, (which they argue is effectively a proxy party part run by Thaksin Shinawatra), used the earlier acceptance by the Thai Foreign Minister of a slightly revised border map as evidence of the Samak Government giving pieces of Thailand away. Indeed Preah Vihear was included in a list of six items which opposition leader Abhisit Vejjajiva put before the Thai parliament when it met to vote on a no-confidence motion against the Government on June 26. Thailand's Administrative Court has subsequently issued an injunction against the Foreign Ministry's support for the Cambodian proposal to list Preah Vihear as a World Heritage site. Where do we go now? Probably not very far in the short term, there being no magic diplomatic bullets to fire at disputes where national pride is concerned. However, money talks and so do jobs, and Thailand is the 3rd largest south east Asian investor in Cambodia, a country crying out for foreign investment. Thai conglomerates such as Siam Cement might well think twice about proposed cement and steel investments if risks are deemed to be too great. Trade between the two countries reached $1.47bn last year: with a forecast FY growth rate of over 20%. That bilateral trade will be worth $1.75bn by year end, figures which will probably serve to concentrate Governmental minds on both sides. With both countries having much to lose, economic 'realpolitik' may well dictate that a compromise is reached sooner rather than later.

Subject to approval by the LPs, the GP proposes to shorten the term of the fund to better reflect the promising current investment conditions. Currently the Fund is structured with a 5 year investment period followed by a 5 year divestment period. With an abundance of attractive investment opportunities coming our way, the GP proposes to reduce the Fund's 10 year lifespan to 8 years: 4 years investment followed by 4 years divestment.  LPs will receive a separate document to vote on this.

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Leopard Cambodia Fund

  CUSIP Number

ISIN Number

VGG5458M1005

CUSIP Number

G5458M100

Valoren Number

LEOBVIL VI