Indirect offshore investing
The Citizen|November 13, 2024
TIPS: KEY CONSIDERATIONS FOR PROACTIVELY DIVERSIFYING YOUR FINANCIAL PORTFOLIO
Erin White
Indirect offshore investing

In times of heightened negativity, South Africans may feel pressured to shift wealth offshore; however, such decisions should not be driven by sentiment alone. Offshore diversification must align with a well-defined investment strategy and specific objectives.

For those considering indirect offshore investments as part of their portfolio, it's crucial to assess key factors to ensure this approach effectively supports your broader financial goals.

Diversification The investment world is a big place and it is only natural to want to mitigate your investment risks through global exposure.

That said, keep in mind that JSE-listed companies generate around 65% of their revenue from global markets, which means that if you are invested in the JSE, you automatically have some offshore exposure in your portfolio.

However, the JSE has shrunk significantly in the past few years and is now dominated by a few key shares, including Naspers, BAT, Richemont and Glencore.

Therefore, it does make sense for investors to look for investment opportunities that are not locally available.

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