Sunday Times

How to in­vest off­shore

- Business · Investing · Iceland · Austria · Belarus · United Kingdom · Belgium

● 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.

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