Offshore investment: seeing the big picture
A sound investment strategy requires a holistic view of the broader environment
Inasmuch as markets and investment opportunities are fluid, one has to guard against changing strategies in response only to changing market conditions, writes Johann Barnard. This is a discipline that many SA investors may struggle to maintain, given the wildly fluctuating fortunes of the rand. Philip Bradford, head of investments at Sasfin Wealth, says the balancing act that local investors grapple with is like trying to solve a Rubik’s cube: "You try to solve for one thing and then you upset the other side of it. So, if you ask what the rand’s going to do, you actually have to ask what everything is going to do on the entire Rubik’s cube." For example, if you are looking to take money offshore, he says you have to go into equities, given the low returns on bonds and cash. This is especially true in the context of local fixed-income investments such as cash and bonds offering 7%-10.5% returns. "If you’re going offshore, you need to be looking to take risk," he says. "When markets ...
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