Offshore shares getting a bit too costly for comfort
Europe looking better than US to managers
South African investors are taking strong bets on offshore markets but asset managers warn that future returns may not come from the same markets that have delivered to date. With the JSE all share index returning just 3% a year for the past three years and as the political and economic outlook deteriorates, investors continue to sell out of local funds and move into offshore funds. Many investors choose low-cost index funds as it is difficult to identify managers that can consistently outperform global equity indices. Many of these indices are more than 50% invested in US-based shares. These shares have delivered good returns over the past nine years - but are now looking expensive, according to investment managers. Over the past year to the end of June, the US equity market as measured by the S&P 500 index has delivered a return of 17.9%, Morningstar notes in its Markets Observer. Neil Padoa, the portfolio manager and head of global developed-markets research at Coronation Fund Ma...
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