Is the grass truly greener on the other side? This is a question that South African investors are asking with increasing regularity as they look to build their offshore exposure to offset lucklustre growth locally.
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Global uncertainty may offer up long-term opportunities
Global uncertainty is just about the only certainty in 2017, but it may bring opportunity. The rapid change in the fortunes of the rand and other major economies in just the past 12 months illustrate the tremendous uncertainty that investors and investment managers have to navigate.
Great opportunities but be careful
There is some comfort for SA investors wishing to invest offshore in the knowledge that the routes to achieving that goal have grown in tandem with the decline in forex restrictions. With the annual foreign investment allowance set at R10 million, the scope for taking money abroad to invest is considerable.
Taking a broader view
An argument that is increasingly made in favour of investing offshore is the vastly superior range of shares available to investors outside of our borders. And with exchange controls now more accommodating of high net worth individuals who wish to grow their wealth by participating in global opportunities it certainly makes sense to look offshore.