Presented by Coronation

Stick to good investment principles when investing offshore

There is much interest in offshore investments these days, and also many questions, and rightly so. Where to invest your hard-earned money is a decision not to be taken lightly.

At Coronation we’ve been investing globally for over two decades and have both the experience and the funds that will enable you to access global markets, at the level of risk that suits your specific financial situation.

Have you missed the bus?

It’s true that over the last decade global equities returned 17% p.a. versus 11% from local equities. But this doesn’t mean that you should rush to take your portfolio 100% offshore.

Consider that in the preceding decade, 2000 – 2010,  it was local equities that delivered 16% p.a. versus 2% from global equities. So, it’s important to avoid basing your decisions on past performance and prevailing sentiment.

Stick to good investment principles

We believe that offshore exposure is not a trend to follow, but part and parcel of a well-diversified investment portfolio – it’s not about when should you invest offshore, rather ask, how does diversifying your portfolio offshore support your investment goals.

But, making these decisions on your own is complex, so ask your financial adviser about Coronation’s selection of multi-asset class funds with professionally allocated offshore exposure based on our extensive research and long-term, valuation-based investment philosophy.

Indirect offshore funds

The Coronation Balanced Plus and Coronation Market Plus funds offer investors with a long-term investment horizon a hassle-free way to gain a high proportion of international exposure (up to 30% and 40%, respectively).

While the Coronation Global Managed and Coronation Optimum Growth funds, can allocate all or most of their assets to international investments. These funds are domiciled in South Africa and do not impact on your offshore foreign exchange allowance.

Direct offshore funds

For investors who want to externalise their rands and have a minimum investment amount of $15,000, Coronation offers a range of US dollar-denominated funds that are domiciled in Ireland.

They offer you the same exposure as our rand-denominated international funds, but with the added benefit of currency and jurisdictional diversification.

If you want to invest more than your annual R1 million general offshore allowance, you will require South African Revenue Services clearance.

To find out more about investing offshore with Coronation, search or Siri Coronation Offshore.

The information contained in this article is not based on the individual financial needs of any specific investor. To find out more, speak to your financial adviser.

Coronation is an authorised financial services provider.

This article was published in partnership with Coronation.

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Stick to good investment principles when investing offshore