Today nearly all professional investors have a percentage or their portfolios allocated in shares or Funds domiciled in Latin America for diversification and capital growth. Over the past 5 - 10 years countries such as Brazil and Colombia in particular have attracted the majority of Foreign Direct Investment (FDI), however, recently we have seen these countries struggle due to heavy currency devaluation (of Reias and Pesos against the US dollar and other hard currencies, see graphs below) coupled with increasing inflation which has in turn eroded many investors accumulated returns. Indeed, inflation is currently over 10% in Brazil (10.71%) and 7% in Colombia (7.45%) compared to an inflation rate of just over 3% in Ecuador (3.09%) with forecasts of parity with the USA. Ultimately inflation will affect all aspects of an economy such as unemployment, consumer spending, tax policies, interest and growth rates, therefore having a negative impact on investment returns. Quite simply these countries economies have grown to quickly giving a false sense of security.
We are now seeing a shift with Ecuador becoming an increasingly sort after jurisdiction attracting increased FDI year-on-year as investors look to realign the Latin American investments within their portfolios. Currently there are a limited number of investment options available for international investors with basic banking products and traditional shares in national companies making up the main offerings until now...
Pegasus Property Funds has identified that while Investors want to have a part of their portfolios in Latin America they also want to invest in assets and currencies they understand. Both “bricks and mortar” and the US dollar offer a familiar, safe, secure and globally recognised asset class and currency. Our Funds now offer you the chance to make sensible investment decisions with confidence while taking advantage of potentially high short, medium and long-term returns.
Property is a simple asset to understand and by adopting proven fundamentals for protecting your investment against inflation, backed by the US dollar which will always retain its value and buying power internationally, this allows Pegasus Property Funds to offer you REAL returns.
The funds offer you potentially high variable returns in US dollars with targets ranging from 20 - 35% net p.a. The performance is compared against the S&P Global BMI (Broad Market Index) on a monthly basis. Our primary aim is to maintain balanced “risk versus reward” strategies.
Investing in a base currency of US dollars automatically mitigates potential currency risk and extreme volatility soft currencies are exposed too, providing your investment with continued security and stability which makes now Ecuador the premier Latin American jurisdiction. All assets are acquired, held, valued and liquidated in US dollars ONLY.
We understand liquidity is an important factor when making investment decisions, therefore we offer a partial withdrawal facility of up to 10% per annum after a period of 1 year, penalty free. This allows you to be safe in the knowledge that you have emergency access to part of your capital should you need it.
Each of our funds have a different investment timeline ranging from 2 - 5 years to suit your needs. You should select the timeline that best suits your short, medium and long-term financial needs and investment horizon.
Latin America should make up an important part of your portfolio in order to give you overall diversification. Having a diversified portfolio will protect you against volatility and generally reduce risk while increasing the potential overall performance of your portfolio. You should never have “all your eggs in one basket,” and by splitting your investment between 2 or 3 funds you increase liquidity, flexibility and potential returns.
1The funds performance is variable and is not guaranteed (see Fund Factsheets for details).
2Partial withdrawals are subject to Pegasus Property Funds approval and are not guaranteed.