Sable International creates solution for expats with living annuities in SA
Living annuity gives unique access to offshore investments
Due to increased demand, the billions of rand invested in living annuities by South Africans abroad can now be matched with their circumstances to alleviate currency and economic risk associated with SA. Traditionally, living annuities have been invested in a similar way to retirement annuities, with only 30% of the portfolio exposed internationally. Annuity providers were loathe to extend their discretionary asset-swap capacity to such investors in general and allow them further or total offshore exposure. According to Niel Pretorius, wealth adviser at Sable International, this creates a problem for those living abroad as their retirement funds are directly linked to the value of the rand and SA’s economic prosperity. “Surprisingly, we found no products available in SA that met our requirements of being able to invest 100% offshore, have extensive investment choice and be cost effective. This is largely because the large providers have limitations on their asset-swap capabilities a...
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