While it may sound like something reserved for only those living the high life, offshore investing is actually quite attainable.
As any seasoned investor will tell you, the secret to smart investment is diversification, and offshore investing is arguably one of the better ways to diversify, particularly if you’re an emerging market investor, says Francis Marais, Head of Research at Glacier by Sanlam.
In South Africa, offshore investing was traditionally a means of hedging against political and economic instability. It was also a way to benefit from the seemingly one-way direction of the weakening rand in order to provide South Africans with some sort of ability to stay abreast of global purchasing power. Noting that 99% of the world’s listed investment opportunities are outside of South Africa, offshore investing is now rightly on the radar of those who want access to investment opportunities that aren’t available locally, says Andrew Brotchie, Managing Director of Glacier International.
The (low) cost of investing offshore
It’s a common misconception that offshore investing is only available to high-net-worth individuals. On the contrary, it is accessible to everyone. “While the rand exchange rate can make it expensive to build up meaningful investment exposure in hard currency terms, there are plenty of opportunities for everyone to invest offshore,” insists Brotchie. “There are local feeder funds with global exposure, but for those who wish to externalise their money properly, investment minimums are reducing for direct offshore access.”