Skip to main content

Learn how to make the most of your offshore investment opportunities

By April 11, 2017July 25th, 2020Moving wealth and investments offshore

Learn how to make the most of your offshore investment opportunities

April 11, 2017

Economic growth figures for South Africa are projected at 1,8% for 2018 and 2019. Some of the other emerging economies are expected to grow between 4,6% and 4,8% for this period. It is for this reason that many South Africans are now looking abroad for possible Investment opportunities. If you are also interested in exploring these it is important to distinguish between the two major investment options available to all South Africans.

Rand-denominated foreign funds

A Rand-denominated foreign fund allows you to invest your money in rands and ultimately get paid out in rands when you disinvest. These funds are classified by the Association of Savings and Investments South Africa (Asisa) as either Global funds (which can be invested over many countries), or Regional funds (invest in a specific country or region). These funds are then further classified according to whether they invest in interest bearing assets, property, equities or across different types of assets.

This is a good option for people looking to Invest in offshore markets but ultimately desire to receive their Investment proceeds in rands.

Foreign-currency denominated foreign funds

To qualify for this option you need to be older than 18 and you also need to be in good standing with SARS.  You will require SARB approval for the offshore transfer by making use of your annual allowances (currently R1 000 000 Single Discretionary allowance and R10 000 000 Foreign Investment Allowance). You may also transfer amounts in excess of these allowances by lodging a special request with the SARB. Please make contact with any of our Financial Consultants for advice in this regard.

The benefit of this option is that you do not have to convert your proceeds back into rands upon disinvestment. It is therefore an ideal option for people planning to Immigrate as the money does not have to be converted back into rands.

Make an informed decision

It is not easy to compare the performance or risk statistics of these offshore funds. You need to be aware that there is no FSB-determined classification for offshore funds. It is therefore advisable to consult with a reputable financial adviser in order to make sure the fund’s current classification matches the exposure you are looking for. can provide you with a preferential exchange rate should you decide to transfer funds abroad. We offer free consultations and take care of all SARS and SARB requirements for safe and secure foreign currency transactions.
[contact-form-7 id=”6581″ title=”Blog post (call me)”]

Leave a Reply