Investing Offshore

Overview

South African investors generally know offshore diversification matters, yet acting on that knowledge can still feel difficult. Global markets are noisy, rand volatility complicates timing, and the breadth of choice can be overwhelming.

However, offshore investing, done strategically, helps to ensure that one country, one currency, and one (significantly smaller) opportunity set do not determine your financial future.

If you are yet to take that first step towards investing offshore, uncertain whether your current allocation is sufficient, or questioning whether your capital invested offshore is working as hard as it should be, this guide is aimed at helping you move from hesitation to action. It covers why offshore exposure matters, how much may be appropriate for your needs, and what to look for in a long-term offshore investment partner.

Why we hesitate

Ask any South African investor whether they should have some international exposure, and the answer is almost always yes. But acting on that knowledge can be difficult. Global economic and geopolitical risks feel persistently elevated, and the rand's volatility adds to the uncertainty.

The obstacle is behavioural

Many investors build offshore positions when global markets are performing well, or when the rand is weak, only to reduce exposure or withdraw when global markets struggle, or the rand recovers. It feels intuitive, but is actually the opposite of what generates long-term wealth.

The challenge is that there is rarely a moment when all signals point in the same direction. Waiting for a moment of global calm, a stronger rand, or quieter markets tends to cost more than the discomfort of acting despite uncertainty.

Volatility is normal, staying invested is what matters

The past several decades of market history are fairly clear on this point. Global markets have experienced significant volatility in almost every year, yet calendar year returns have been positive far more often than not.

The lesson is not that investors should ignore volatility, but that they should not let it become a permanent reason to delay. The investors who benefited most from global diversification were those who built exposure steadily and stayed invested through difficult periods, regardless of where the rand was trading or what headlines dominated the news.

More noise, more need for discipline

A growing share of daily market activity is driven by passive flows, algorithms and short-term trading signals, rather than by investors assessing the long-term value of individual companies. Rapid advances in artificial intelligence and technology are amplifying this dynamic further, generating fresh waves of excitement and anxiety that can move prices well ahead of any real change in a business's underlying worth. This can make markets feel noisier than ever, but it can also create opportunities when prices move for reasons unrelated to fundamentals.

That is where disciplined active management matters. Coronation's valuation-driven approach is designed to look through short-term dislocations, to distinguish temporary noise from lasting value, and to invest with patience when long-term opportunities arise.

The companies and technologies reshaping the global economy will take time to prove their value. In noisier markets, the advantage lies in having a portfolio – and an investment manager – with the discipline to separate short-term excitement from long-term opportunity.

What you achieve when investing offshore with a long-term lens

Diversification into international markets holds the following benefits for your portfolio:

1. Enhanced returns through a broader opportunity set and optimal exposure

The sheer magnitude of investment opportunities outside South Africa is evident in the combined market capitalisation of the world's top five exchanges (see visual below), which exceeded $90 trillion (and comprised more than 13 000 listed companies) compared to the JSE's ~$1.6 trillion (and universe of less than 300 listed companies).

By expanding your investment universe, you unlock access to more opportunities of innovation and growth, tapping into industries and opportunities that may be absent or underrepresented in the domestic market.

The practical implication is straightforward: a portfolio that includes international assets simply behaves differently from one that doesn't, and that difference tends to improve long-term outcomes.

The graph below shows how different levels of offshore exposure have affected the balance between risk and return for South African investors over time. Each point represents a portfolio with a different allocation to international assets. The aim is not simply to maximise offshore exposure, but to find the mix that has historically delivered the best return for the level of risk taken.

The evidence shows that adding international assets to a South African portfolio has not only broadened the opportunity set; it has also improved the portfolio's efficiency. In other words, the right level of offshore exposure has historically allowed investors to earn more return for each unit of risk, because global assets do not move in perfect lockstep with South African assets and because currency movements can add an additional layer of diversification.

At 0% offshore exposure, investors earned 1 unit of return for every unit of risk taken. The optimal point shown on the chart is around 45% offshore exposure, where the risk-adjusted return improves to approximately 1.3 units of return for every unit of risk.

Offshore investing is not only about accessing global growth. Used appropriately, it can also make a South African portfolio more resilient.

2. Reduced overall risk

Not all assets move together. When some fall, others hold steady or rise. That is the essence of diversification, and it is why combining South African and international assets produces a more resilient portfolio than either can on its own.

One way to reduce the overall risk of your investment portfolio is by combining asset classes with negative or no correlation. This means that if one asset class in your portfolio declines during a market downturn, other asset classes will either rise or remain unaffected. This can result in a better overall outcome and reduced overall risk.

In a severe risk-off event, the inclusion of developed market assets (specifically bonds), gold and cash can offer much-needed diversification at a time when equities (global and SA) typically sell off and emerging market bonds depreciate.

The following table illustrates the benefits of incorporating global assets into your South African portfolio.

South African equities and bonds exhibit a low to negative correlation with their global equivalent asset classes, and this correlation is even lower when examining the relationship between specific asset classes (i.e., SA equity to global bonds and SA bonds to global equity).

For South African investors specifically, this effect is amplified by currency movements. When the rand weakens against major currencies (a structural trend over decades), international assets priced in hard currency rise in rand terms, enhancing the diversification benefit.

The key takeaway from this exercise is that by allocating money internationally, you add another asset class or set of asset classes to your overall investment portfolio that behave differently from those in your local asset class mix, especially when factoring in the impact of the local currency.

3. Matching your assets to your future costs

Many items in a South African consumer's shopping basket are influenced by global prices and hard currencies, from fuel and food inputs to medicines, technology, appliances and vehicle parts. Even if you never plan to emigrate or fund overseas education, part of your future cost base is already global.

Adequate international exposure can help protect your portfolio against the long-term impact of rand weakness on these costs. By holding assets priced in hard currencies, you create a natural offset when imported or globally priced goods become more expensive in rand terms.

For investors with larger future hard-currency needs – such as overseas travel, international education, business opportunities, helping family abroad or emigration – the case for additional offshore exposure may be stronger.

How much should you invest offshore?

The answer to this depends on your circumstances, but a useful starting point is your future spending.

Some costs will remain rand-based, such as your home, local living expenses and South African school fees. Others are directly or indirectly linked to global prices or foreign currencies. The more your future costs are exposed to hard currencies, the stronger the case for a higher offshore allocation.

For many investors, the offshore exposure available through retirement products – up to 45% internationally – may be sufficient. Others may need more through discretionary savings, particularly if they spend in foreign currency, want to support or leave assets to family abroad, do not rely on their investments for rand income, or need broader geographic diversification. A financial adviser can help determine what is appropriate for your personal circumstances.

Getting the allocation right for your circumstances matters more than getting the timing perfect. If your current offshore exposure falls short of what your future spending needs require, the benefit of correcting that gap will almost always outweigh the advantage of waiting for a better entry point in markets or currencies. As discussed earlier, trying to time it is often how investors end up not acting at all.

An established and proven global offering

Offshore investing asks more of an investment manager than access to international markets. It requires the judgement to navigate different economies, currencies, sectors and cycles, and the discipline to assess opportunities on their own merits across a genuinely global investment universe.

Coronation has approached offshore investing as a structural part of long-term wealth creation for nearly three decades. Over that time, we have built a global offering that applies the same long-term, valuation-driven philosophy investors may recognise from our South African flagship fund range, while giving them access to portfolios managed across global markets and asset classes.

For South African investors looking to build offshore exposure beyond what our multi-asset funds provide, that global capability is available through three access routes: rand-denominated feeder funds, Actively Managed Exchange-Traded Funds (AMETFs) and foreign currency offshore.

What we offer

Scale and established capability

Offshore investing has been part of Coronation's investment capability for nearly three decades, supported by a dedicated global research effort and $11 billion* entrusted to global mandates.

A complete fund range

You can access global funds across the full investment spectrum, from short-term capital stability to long-term equity growth, and across both multi-asset and single asset class solutions.

Multiple access routes

Coronation's global portfolios can be accessed through rand-denominated feeder funds, AMETFs, or foreign currency offshore funds.

What this means for you: An offshore allocation backed by established resources and research discipline, built around your objective, time horizon and risk appetite, and accessed through whichever route best suits how you want to invest.

How we invest

Consistency of philosophy

The same valuation-driven, long-term investment principles that guide our local portfolios apply to our global portfolios.

Disciplined risk management

Every position in our global portfolios is assessed with a clear view of valuation, risk budget and the downside we are prepared to accept.

Team depth and stability

Coronation's investment team is cohesive, experienced and integrated, with 50 investment professionals, 45 CFA charterholders and three former Chief Investment Officers contributing to our research depth.

What this means for you: A focus on long-term value rather than short-term market trends, the discipline to avoid areas of the market where prices are stretched beyond fundamentals, and a stable team with the institutional memory and conviction to stay the course when markets are at their most challenging.

* As at 31 March 2026

Staying the course in our global portfolios

The case for staying invested through volatility is easy to understand in principle. What matters more is how that discipline has translated into long-term outcomes.

The following charts show the growth of $1 million invested in two of Coronation's longest-running global multi-asset portfolios, compared with their respective peer groups. The periods shown include major market shocks, changing interest-rate regimes, and sharp shifts in investor sentiment.

Across both funds, the pattern is clear: meaningful offshore wealth creation has come from time in the market, not perfect timing. It has also depended on a disciplined investment process able to look through short-term noise and stay focused on long-term value. That is the role Coronation's global portfolios are designed to play.

Coronation Global Optimum Growth gives you access to our very best investment ideas from anywhere in the world, all in a single portfolio. Because it looks beyond retirement savings, this mandate can invest mostly in equities to grow investors' savings over the long term. It also means accepting bigger ups and downs along the way.

Coronation Global Managed gives you access to a diversified developed market portfolio that balances long-term growth with risk management. It is suited to investors who want meaningful global equity exposure, but through a smoother journey than a more equity-heavy global growth fund like Global Optimum Growth. By investing across asset classes, including equities, bonds, and cash, the Fund can participate in global opportunities while managing downside risk through changing market conditions.

How to invest offshore with Coronation

There are three ways to access Coronation's global portfolios. Each gives you access to the same underlying funds. The right route depends on whether you want to invest in rands or hold assets directly offshore.

Route One: Rand-denominated feeder fund

This route is easy to use and access, as everything is set up in South Africa. You invest in rands, and your withdrawal is in rands. The fund takes care of the rest, channelling your money into one of our global portfolios without requiring you to open an offshore account or convert currency yourself. There is no limit on how much you can invest annually, and you can access it directly through a platform or our website.

Route Two: Actively managed exchange-traded fund (AMETF)

Our AMETFs are listed on the JSE and can be bought or sold through a stockbroker or online share trading platform. They invest in rands, require no tax clearance or currency conversion, and have no annual limit. They also offer intraday trading flexibility.

What is an AMETF?

A listed investment product, managed by a fund manager who uses an active investment strategy aimed at outperforming a benchmark as opposed to passively tracking an index. Coronation's suite of AMETFs is listed on the JSE and can be accessed directly through stockbrokers and online share trading platforms.

Route Three: Foreign currency offshore fund

This route involves converting your rands into foreign currency and investing directly in Coronation's offshore funds, which are incorporated in Ireland. It provides both economic diversification and jurisdictional diversification, meaning your assets are held outside South Africa and governed by Irish law.

The Single Discretionary Allowance now allows you to invest up to R2 million offshore each year without prior SARS approval. A further R10 million is available annually with tax clearance. You will need a foreign-domiciled bank account, so there are more steps involved, but your financial adviser can help you work through them.

Unsure where to start?

A rand-denominated feeder fund is often the simplest first step. You can add other routes as your offshore allocation grows or your need for jurisdictional diversification changes.

Conclusion

The hesitation around offshore investing rarely comes down to whether it makes sense. Most investors already understand the case. The harder part is acting when markets feel uncertain, the rand is volatile, and the choices feel more complex than investing locally.

But waiting for the perfect entry point is not a strategy. It usually delays the more important decision: setting a sensible offshore allocation, choosing a route that matches your needs, and staying invested for long enough to let the breadth of global opportunities, and the diversification they provide, do their work.

Start here:

Check your allocation. Compare your current offshore exposure with your future spending needs, especially where those costs are linked to global prices or foreign currencies. If you are unsure, speak to a financial adviser about an allocation that suits your personal circumstances and requirements.

Choose the simplest access route. A rand-denominated feeder fund may be the easiest starting point, with a minimum of R500 per month. For those who want the full benefits of what an offshore investment offers (including holding assets outside South Africa in a foreign currency) a foreign currency offshore fund is the route to go, with a minimum lump sum of $500, €500 or £500. An AMETF may suit investors who prefer the flexibility of a JSE-listed option that offers intraday trading. The right route is the one that matches your needs and that you can stick with.

Start, then give your investment time to work. Once you have the right allocation and the right route, the rest comes down to getting invested and staying invested long enough for global diversification to do its work. Wealth built offshore is rarely the result of a single well-timed decision. Instead, it is the result of a sound decision made early and held with patience.

To find out more, explore our latest thinking on global investing in the insights section at coronation.com, download our fund fact sheets, call us on 0800 22 11 77, or speak to your financial adviser about the right offshore allocation for your situation.