Investing offshore allows you to spread your investment risk across different economies and regions. It also gives you access to industries and companies that may not be available locally.
You have two options when investing offshore: Indirect (Asset Swap) or direct.
Indirect offshore investment:
- This allows you to invest in offshore assets (also known as global assets) without the money physically leaving South Africa. The money is invested in a local unit trust that invests offshore. This is done by a process called “asset swaps”.
- No tax clearance is needed and the investment performance and value is reported in rand value.
Direct offshore investing:
- Individuals can invest R1 million a year for travel and other purposes (no tax clearance needed).
- Individuals whose tax affairs are in order can take a further R10 million a year out of the country, subject to tax clearance and Reserve Bank permission.The money is moved from a South African bank account to a forex bank account from where you can invest in a virtually unlimited choice of investment options and products. We partner with a stock broker called Interactive brokers who supply us with access to instruments on more than 20 global indexes.
- Due to cost incurred when investing directly we recommend a minimum lump sum investment of R500 000.