Offshore investment: a world of opportunity
Building an offshore portfolio can be overwhelming, given the choice available
A common argument supporting the case for building an offshore portfolio is the far greater choice of stocks available in international markets, writes Johann Barnard. This is certainly true, but greater choice could overwhelm novice investors unsure of where or what to invest in. There are many different ways in which to get exposure to global markets, and rand and foreign-currency denominated unit trusts are a popular and painless way to do so. Select investors may opt for direct ownership of foreign shares by using the R10m and R1m foreign exchange allowances available to all citizens. "The FTSE world index rose 24% in 2017, keeping the current bull market alive for a ninth year," says Allan Gray’s Tamryn Lamb. "Future stock market returns do not look appealing at current valuations, but luckily we don’t need to invest in the market. Our job is to find individual opportunities in which potential return significantly exceeds risk." Lamb says she would, for example, look at specifi...
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