Financial Diversification Through Offshore Investing

The global investment arena is transforming at a rapid pace. Are your investments structured to participate in the growth opportunities this is creating?

South Africans are allowed to take up to R1 million offshore annually (travel allowances included). Transfers over R1 million up to R10 million are allowed but require SARS tax clearance approval.

Secure your financial future with investment solutions made for you.

Apply for a Complimentary Offshore Investment Consultation.

Helping you reach your offshore goals

Do you want to build your future wealth but find that your local investments are lacking global diversification and growth? Would you like to one day retire overseas, or perhaps educate your children abroad?

We understand that every investor has different financial goals, wants and needs; that's why we offer offshore investment solutions tailored specifically for you. With Carrick Wealth’s investment solutions we will work with you to ensure you make informed decisions to grow your wealth.

The Benefits of Investing Offshore

Diversification of your investment portfolio.

Access to companies with a global footprint.

Protection against rand volatility.

Potential tax benefits.

Flexible Offshore Investing

Offshore investing options that will suit your current financial situation and future financial goals

Classic

>£50,000
  • Reduced Currency Risk
  • Guided Portfolio Choices

Premium

>£75,000
  • Reduced Currency Risk
  • Guided Portfolio Choices
  • Full Portfolio Choice Flexibility
  • Enhanced Structuring Opportunities

Elite

>£125,000
  • Reduced Currency Risk
  • Guided Portfolio Choices
  • Full Portfolio Choice Flexibility
  • Enhanced Structuring Opportunities
  • Estate Duty Benefits
  • Probate Benefits
  • Seamless Succession

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How much should you invest offshore?

As a general rule, a substantial portion of one’s portfolio should always be invested offshore. But your exact level of offshore exposure will depend primarily on your investment goals and objectives. Generally, the offshore portion of your portfolio will be larger if you require additional diversification, reduced currency volatility or have income/expense requirements in hard currencies.

For example, if you have a more aggressive return target of inflation+7%, you would tend to need between 35%-40% offshore. A return target of inflation+6%, meanwhile, is more in line with a typical “balanced” fund with around 30% offshore. Finally, a more conservative target of inflation+2%-3% would generally dictate offshore exposure of only 10%-20%.

These are guidelines, however; the exact portion should be appropriate for your own long-term requirements.

Offshore Investing for Portfolio Diversity

Offshore investments are typically referred to as investments which are based in a jurisdiction other than an investor’s country of residence. This could be in developed countries or in emerging countries such as China, India, Brazil, Russia or Turkey. The key to offshore investing is to not only invest in a different jurisdiction but also in different asset classes, thereby diversifying your investment portfolio.

The South African market represents only about 1% of the global stock market capitalisation. Therefore, by only investing locally, you are significantly limiting your portfolio’s exposure to global markets and the opportunities they represent.

By allocating a portion of your investments offshore and diversifying, you can spread the risk and enhance the possibility of generating better returns. It also gives you access to sectors that you would not find on the JSE. It is important to keep in mind that you need to have a longer time frame for offshore investing because of the dual volatility of currencies and the markets.