2018 Investing Offshore - July 2018

2018 JULY: INVESTING OFFSHORE

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The benefits of increased offshore allocations - July 2018

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Coronation Insights

Coronation Insights

In previous issues, we have argued the benefits of increased offshore allocations for most long-term investors.
Today, as a consequence of the increased popularity of multi-asset funds, many South Africans have more appropriate exposure to offshore assets:

PENSION FUND INVESTORS

Pension fund assets in particular now have increased international exposure. Direct offshore exposure in our multi-asset funds are above neutral (See Figure 6 on page 11), and these funds are also invested in global companies that are listed in SA (e.g. Anheuser-Busch Inbev, Naspers and British American Tobacco). As a result, many investors in these funds already have a relatively large exposure to foreign markets.

DISCRETIONARY INVESTORS

Investors with discretionary savings, should consider using a foreign-domiciled fund for their global exposure. Given the current exchange controls, it remains relatively easy to invest in these funds. With our foreign-domiciled funds, your investment is converted into a foreign currency and kept in an overseas investment account.

In this issue we discuss the strategic reasons for investing offshore, revisit our international investment philosophy and approach and look at the various options through which to gain offshore exposure with Coronation.