Still make sense
It is not about the rand or pessimism; it’s about sound financial planning, writes
INTERNATIONAL INVESTMENT PORTFOLIOS The International Investment Portfolio is available to investors with funds offshore, with a minimum investment of £25 000 (R553 504). With a fee of only 0.75% a year, it is one of the most cost-effective options for local investors abroad.
South Africans can also invest in the portfolio with rands via the Marriott First World Equity Feeder Fund, with a minimum investment of R500, or R300 a month. The total cost is slightly higher at 1.5% a year.
INVEST OFFSHORE WITH YOUR TAX-FREE SAVINGS ACCOUNT The end of this month will be your last chance to take advantage of this year’s R30 000 limit in a taxfree savings account.
Currently, the only way for South Africans to use their tax-free savings account to invest offshore is through db X-trackers – an exchange-traded fund issued by Deutche Bank that invests in global indices without requiring the investor to have an offshore account or a tax clearance certificate.
Db X-trackers provide indextracking exposure to equity markets in the US, the UK, Europe and Japan, as well as a mix of leading international markets via the MSCI World Index, and are listed as exchange-traded funds on the JSE.
They can be bought from a stockbroker or through an investment plan with a lump sum of R1 000, or a R300 monthly debit order.
Although the asset management fee varies from 0.7% to 0.9%, investors using the investment plan platform pay an additional 1% a year, bringing the total costs closer to 2% a year.