Most investors don’t realise that they already have offshore exposure if they are invested in a Multi Asset/Balanced Fund. Most of these type of funds will allocate a portion of the fund towards offshore equities, cash and bonds.
Another way that you may have offshore exposure is through owning shares in big multinational companies listed in South Africa and abroad. These companies earn profits locally as well as internationally and may include companies like Prosus and Richemont.
Another way to invest offshore is to take your capital directly offshore through a reputable investment platform in to another currency.
South Africans residents are allowed to take a maximum of R10 million a year offshore if SARS has granted them a tax clearance certificate to move the money abroad.
Without the tax clearance from SARS, you can only move a maximum of R1 million out of South Africa into your foreign bank account or offshore investment each year.
Transactions under R1 million must still be registered with the Reserve Bank. The transaction would need to be facilitated through an authorised dealer, which includes most banks and Foreign Exchange Firms.
Most Investment platforms have a minimum of around $25 000 as an initial investment directly offshore, and a minimum of $10 000 as additional investments into an existing offshore investment.
It is also possible to have offshore exposure in your local investments through Feeder Funds and certain Equities as explained above. Minimums are Investment Vehicle and Investment Platform dependant. Initial investments may range from R50 000-R100 000 as a lump sum or R1000pm as a recurring investment.
I would suggest seeing an independent Wealth Manager that allocate mainly towards Linked Investment Service Provider (LISP) platforms, as costs are usually very competitive and flexible. These investments would normally be in the form of:
- Direct Shares
- Unit Trusts
- Other securities
These assets may form part of the following investment structures:
- Flexible Investments
- Endowments/ Sinking Funds
- Share Portfolios
Ruvan J Grobler RFP™