Let Go of the Unicorn Mentality and Invest Offshore

Investing offshore is in the fact one of the best ways to mitigate and spread your financial risk. That’s not to say that the best thing to do during trying times is to panic and rush all your money out of the country. Keep calm and look at the full picture. Let’s face it, with escalating geopolitical tensions and market upheaval, the entire global economy is under pressure. This is why having a long-term approach to building and maintaining your wealth – one that is underpinned by diversified global investments – is advisable.

Understanding rand volatility

We’d all love to be fortune tellers but when it comes to predicting the rand’s long-term performance even the sturdiest of crystal balls are prone to cracks. Nevertheless, while history has also shown that it is remarkably resilient, the rand is undoubtedly among the world’s weaker currencies. As an emerging market, South Africa is also highly vulnerable to the rollercoaster ride that is global investor sentiment – meaning that volatility is a given. While there are certainly local opportunities, one needs to take a long-term view both to local investments and to spreading your cash and assets across different economic regions.

Investing offshore

Helping you to access opportunities around the world, offshore investments should form part of any diversified portfolio. Diversification – the holy grail when it comes to investing – helps to ensure that your wealth is spread across different geographies and asset types and classes to limit your financial risk.

Aside from providing a layer of protection from rand volatility and inflation, investing offshore allows you access to profitable global companies in growing sectors like biotech and green energy, not yet at their peak in South Africa. It also enables you to earn consistent returns as different asset classes peak at different times.

When deciding how to approach offshore investments, consider your unique financial situation and future goals. Lost in a myriad of options and regulations? As leaders in offshore investment, we may not be unicorns, but we’ll walk alongside you throughout your financial journey.