How to invest offshore
● If you want to maximise your offshore allocation and invest in foreign currencies, you need to ensure you use a living annuity provider that offers access to offshore funds within a living annuity, Schroder’s Gavin Ralston says.
To invest directly offshore, you need to take your money offshore and invest it in vehicles in foreign countries, PPS’s Reza Hendrickse says.
You can get offshore exposure through rand-denominated foreign unit-trust funds or up to 30% exposure in a local unit trust, such as a multi-asset or balanced fund, that is mandated to invest a percentage of the fund offshore. In a South African fund, the offshore allocation will depend on the fund’s mandate.
If you are living abroad and have a
South African living annuity, you can get 100% offshore exposure through a living annuity offered by Sable International.
Neil Pretorius, a wealth adviser at
Sable, says Sable set up the living annuity on Momentum’s platform for its overseas clients. The underlying fund is denominated in pounds and is managed by a discretionary investment manager, Milton Optimal.
“If you live in the UK, you want to benefit from your investments in sterling. It makes total sense for your investments to be in your domestic currency rather than rands,” Pretorius says.