South Africans have a strong home bias when it comes to their investment choices, but it’s come at a high opportunity cost over the past five years. While it’s true that the SA unit trust industry offers funds that invest offshore, these funds represent about 10% of the unit trust industry’s R2.5-trillion of assets. This leaves a lot of room for growth.

More than half of the see-through earnings of companies listed on the JSE are generated outside SA, making a diversified portfolio of JSE-listed stocks quite global in nature. But by restricting one’s global investment choices to only the handful of large JSE-listed multinationals, you run the risk of missing out on attractive shares listed elsewhere.

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