How to invest offshore to reduce risk and expand opportunities
Choice of rand-denominated unit trust fund or direct investment depends on investor’s needs
Since the sacking of finance ministers Nhlanhla Nene and Pravin Gordhan and the subsequent investment downgrades the pace of offshore investment has undoubtedly increased. Investors are diversifying their investments offshore to protect themselves against increased political and economic risks as well as to fairly limited opportunities in SA. Investors can obtain exposure to offshore investment markets in two ways: rand-denominated international unit trust funds or direct offshore investment. It is important to make a decision that’s appropriate for your circumstances. In terms of the rand-denominated international unit trust fund option, the investor buys a rand-denominated international fund through a South African financial institution. The unit trust company then uses its foreign capacity allowance to invest the funds offshore. It is important to note that the proceeds of the investment are always payable in rands (the proceeds will need to be paid into a South African bank acco...
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