How going global works
Strategies will differ from one person to another and there will be risks, writes Johann Barnard
The performance of global stocks over the past three to five years has more than rewarded investors who have diversified their portfolios into international markets. The higher yields (in rand terms) simplifies the job of wealth managers responsible for growing clients’ capital. Brenthurst Wealth’s Renee Eagar says the JSE all share index has returned 6.39% annualised growth over the past three years, and 10.38% over five years. The S&P 500 has grown 13.26% and 17.81%. "SA is tiny in terms of the world economy, and the reality is that you can’t get access to specialised themes like technology, biotechnology and health care," she says. "Your investment universe offshore is so much greater." She says investors have become a lot more aware of the need for offshore diversification. Nenegate was a pivotal moment in the awakening of investors, suddenly exposed to the dangers of too heavy an exposure to the local economy. Eagar says the opportunities for global exposure are numerous and re...
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