29 October 2020
Before your move your money offshore though, take a moment as Francis Marais, Head of Glacier Research weighs in and reminds us that offshore investing is not an end in itself. It forms part of an investment portfolio that has your needs and circumstances at its centre.
One should realise that currently uncertainty and economic headwinds are a global phenomenon, says Francis. However, South Africa does face some of its own unique challenges. The open secret to investment success is healthy broad-based exposure to as many opportunities and as much potential growth as possible. This certainly entails some exposure to offshore assets, perhaps even a significant portion of your investment.
The ideal exposure, however, would depend on your own unique circumstances, your needs and your liquidity requirements. Here, your financial adviser plays a very important role to help decide on the most appropriate allocation. Principles such as diversification and long-term financial planning continue to be as relevant as ever, when making these types of decisions – and these principles can be fulfilled in local or global markets.
Portfolio construction – the process of selecting assets and funds in an investment portfolio based on an investor’s risk-return profile – is an essential ingredient of investment success. This means that both local and global investing form part of a well-considered solution set.
Francis suggests a checklist of things that you should consider when constructing your portfolio.