Why investing abroad can be beneficial for your
When it comes to investments, many South Africans opt for a “local is lekker” approach, preferring to stick with homegrown funds over international options. While investing your money in Mzansi products is certainly worthwhile, ignoring offshore investments altogether will lead to missed opportunities.
Have a look at our top reasons on why and how to invest internationally below:
Geographic diversity is essential
Diversity is the spice of life, and this principle also applies to building a strong investment portfolio. Ideally, you want a healthy variety of assets over different sectors, exposing you to different asset classes and investment styles. Investing offshore is an excellent way to diversify, especially in sectors only available internationally.
Did you know South Africa makes up less than one percent of the global gross domestic product (GDP)? We think it’s about time to change this statistic. Don’t miss out on the many possible international growth opportunities.
Externalise funds smartly
South African residents have a discretionary allowance of R1 million and a foreign allowance of R10 million available per calendar year. Externalising these funds can be somewhat daunting, which is why we’ve partnered with service providers to help you get your funds abroad at the best rates possible.
Offshore structures for an optimised portfolio
When in Rome, do as the Romans do. And when investing in Rome or anywhere abroad, remember that you are liable to the jurisdiction’s costs and taxes. This can get confusing (and expensive) quickly, so we have offshore structures in place to ensure you’re investing with risk-adjusted returns and tax efficiency in mind. Trust us – you don’t want to spend all your hard-earned investment money settling Italian tax fees!
Investing offshore might initially seem intimidating, but it’s a highly effective way to diversify and optimise your portfolio. And when you have seasoned fund administrators at your side, building a strong portfolio with international assets is as easy as pie!
mCubed is an independent fund administrator with all the expertise and knowledge you need to become financially secure, even into retirement. Members, clients, and participating employers of our retirement funds enjoy access to the best investment administration and advice, excellent service, and complete transparency for the best long-term results. Our fund-appointed FAIS-accredited financial advisors help you to enjoy a safe, financially sound, and prosperous retirement.
