Find the right mix of offshore assets
Offshore investing is not a question of ‘if’ but rather ‘how’ and ‘where’, writes Pedro van Gaalen
Astute investors understand the importance of offshore investing; it protects their wealth from the corrosive impact of SA’s weak economy and delivers growth.Bernard Drotschie, chief investment officer at Standard Bank Group subsidiary Melville Douglas, says SA has had significant outflows into international markets in recent years. "This trend has been a function of political factors leading to a low-growth environment, and the concentrated local market, which offers investors fewer opportunities."Drotschie adds that, like other emerging markets, SA’s consumption-focused economy makes it vulnerable to events that erode consumer confidence and spending power, like the Covid-19 pandemic.Offshore investing is not a question of "if" but rather "how" and "where".Kondi Nkosi, country head at Schroders, says: "Investors can utilise their annual foreign investment allowance in their personal capacities to invest up to R11m per person per year directly offshore."Drotschie adds: "Investors c...
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