NewswireToday - /newswire/ -
Beverly Hills, CA, United States, 2014/02/05 - CEO Peter Tasca of Laureate BVI states, "We expect bond funds to continue with outflows and with interest rates at historic lows we see substantial risk”.
Laureate BVI has issued a “Sell” rating on bond funds as it reports a positive forecast for the British and German economy while predicting contractions in France, Italy and Spain.
Jason Simpson, a U.K. rates strategist at Banco Santander SA in London, said “The economic numbers in the U.K are looking a lot better than in the euro zone and the spread is reflecting those fundamentals.”
Laureate reports that the problem in bond funds is that many have bulked up on junk bonds, which help drive performance but also increases risk of default.
CEO Peter Tasca of Laureate BVI states,“ We have exposure to bonds but we only invest in secured notes that have a maturity of 1 year or less. We need to only forecast the viability of the company or project backing the investment for 1 year, this strategy gives our fund liquidity and has worked extremely well for our clients.”
Andrew Goodwin, senior economist at Oxford Economics, said: ‘The UK recovery is getting ever closer to achieving “escape velocity”, although the unbalanced nature of the recovery to date emphasises the need to avoid complacency.
Laureate stresses although the U.K. and German economies are recovering, to stay away from bond funds. “Bond funds do not offer a fixed maturity date, if interest rates rise, investors who own bond funds can only get their money out of the fund by selling their shares at a lost” according to Tasca.
Last month Laureate launched an innovative referral fee program designed to be a straightforward commission structure that provides generous rewards for referring new customers to Laureate BVI fund.
According to CEO Peter Tasca,“With this program an advisor or family office can offer our fund without the client incurring additional management fees, it gives the advisors additional resources and saves the client money.”
About Laureate Trust
Laureate Trust (laureatetrust.com) provides expert portfolio management that achieves optimal results. The proven trading strategies are based on four principles: diversification, technical analysis, trend following and risk management, which combined have the potential to profit from any economic situation. This disciplined approach with our replicated trading strategies have a 10-year average of +31.6% per year. In 2013 this multiple platform strategy returned +23.01% net of all fees.