2019 Investing Offshore - July 2019
2019 July - INVESTING OFFSHORE
How to decide on a strategic level
While it may be best to draw up a comprehensive financial plan with a qualified financial adviser, we can offer the following general guidance: All long-term investors can benefit from portfolio optimisation benefits, with 20% being the minimum suggested strategic international allocation.
- Pensioners and other investors who need to fund a long-term rand income from their investment portfolios should guard against having too much international exposure, as rand movements can be volatile. Income-funding portfolios should typically not have more than 35% in international equities.
- Wealthy investors, without immediate income requirements, have more latitude: up to 100% of their investment portfolios can be invested in international assets, depending on their objectives and tolerance for risk.