Global investing
Taking a broader view
It makes sense to look offshore to build a balanced portfolio
An argument in favour of investing offshore is the vastly superior range of shares available, writes Johann Barnard. And with exchange controls more accommodating of high-net-worth individuals who wish to grow their wealth by participating in global opportunities it certainly makes sense. Given that SA constitutes less than 1% of the global economy, the argument for accessing a broader range of opportunities is compelling — particularly given SA’s weak growth and depreciating rand. “With SA being a small economy, as an investor your choices are limited. For example, within the pharmaceuticals sector on the JSE, you are limited to only three companies ... whereas on the London Stock Exchange there are 60,” says Wayne Sorour, head of Old Mutual International SA. “If you then add the US and European pharmaceutical companies, the choice becomes even wider. When you compare the valuations of those companies ... they could be better than the three you can choose from locally. “In the past...
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