Retirement savers are constrained by regulation 28 of the Pension Funds Act, which keeps their offshore exposure to 30% of the fund. But retired investors, who have invested their retirement savings in living annuities from which they draw an income, are not bound by these restrictions. They are free, within the constraints of the funds and investment platforms they use, to set their own offshore allocations. But deciding on an optimal offshore allocation is not an easy task. Like many investment houses, PPS Investments and Schroders expect that the rand will continue its decline over the long term. Gavin Ralston, head of official institutions and thought leadership at Schroders, says political uncertainty, low economic growth, high unemployment and a high percentage of debt that is financed from foreign capital, make the rand vulnerable to changes in the US dollar as well as to sentiment towards emerging markets. Long term, Schroders expects the rand to depreciate against the dolla...

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