Exercise care offshore, say experts
Advisers say that during uncertain times diverse exposure to foreign markets is a better bet than a panic dump of funds abroad
Panicky investors should resist the urge to send money offshore amid domestic economic uncertainty, but should be well diversified, say experts. In past times of uncertainty, South Africans had rushed to take money offshore and then lost out when the rand recovered and the economy stabilised, said Lance Solms, MD of iTransact, an exchange-traded products investment platform. "Financial advice is of critical importance. Investors should not panic and should collect as much information as possible before investing offshore." Wayne Sorour, head of Old Mutual International SA, said that for diversification purposes and considering the small size of SA’s economy, individuals should have at least 30% of their investable assets in offshore investments, across countries, sectors and currencies. Cinnabar Investment Management CEO Alex Funk said investors who were seeking currency gains would get sufficient offshore exposure via the JSE’s Top 40. The exchange’s Top 40 index generates about 65...
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