Many South Africans are concerned about the effect of the vulnerable rand on their life savings, especially those who are reaching retirement. Due to the decline in emerging market investment, instability in the mining sector and various other factors, the rand is down another 8% this year after an 18% tumble in 2013. And who knows what the future will hold?
It comes as no surprise, then, that South African high net worth individuals hold 32% of their wealth offshore, with the UK netting the largest proportion of investment, according to Datamonitor. This is obviously a way to hedge against both rand uncertainty and weak domestic growth.
However, is now the best time to invest offshore. Each individual’s risk portfolio differs but the old adage of not placing all your eggs in one basket remains your most important tool in reducing the overall risk of your portfolio. At Warwick we tend to take a medium to long term view when considering our strategic asset allocation over the various asset classes. Our current position is to hold an overweight offshore exposure.
If you are unsure as to whether offshore investment is right for you, Warwick Offshore is here to provide you with clear, straightforward and insightful advice. If you do decide to diversify your portfolio overseas, we can help you to invest in blue-chip stocks and funds that are both locally and internationally compliant. We can also assist you with tax clearances and the FOREX transactions required to move funds, should you wish to use your offshore allowance.
To find out more about Warwick Offshore, give us a call on 0800 50 50 50