Mastering Offshore Moves in Pension Investments: Why Staying Informed is Key

Mastering Offshore Moves in Pension Investments: Why Staying Informed is Key

Unlocking Offshore Investment Insights: A Guide for South African Investors and what you need to know:

Embarking on the journey of increasing offshore holdings is a trending topic for South African investors, especially amidst the ever-changing economic landscape and regulatory shifts. Steering this course are fund managers, positioned as key players, leveraging their expertise in crafting well-informed decisions spanning stocks and diverse assets.

Revolutionary Regulation 28 Amendment: Setting the Stage!

In the landscape-altering announcement of February 2022, the Minister of Finance ushered in a new era for offshore holdings in South Africa. The amendment to Regulation 28 of the Pension Fund Act catapulted allowable offshore holdings from 30% to a robust 45%, casting ripples across both retirement and unit trust sectors. This seismic change reverberated notably among SA Multi-Asset High Equity funds, mandating alignment with the amended regulation.

Evolving Strategies: A Deep Dive into Fund Managers’ Moves!

Post-announcement, fund managers approached the shift with caution, maintaining offshore holdings around the 30% mark. However, a noticeable surge in offshore investments marked the middle of the past year. Fast forward to September 2023, and the average offshore weight for major managers has surged past 37%. This strategic adjustment involved a shift from local equities to offshore bonds, creating a scenario where both local and foreign investors found themselves net sellers of South African equities.

Essential Considerations for Investors: A Prudent Approach.

Before delving into amplified offshore exposure, a critical step is understanding the recent manoeuvres of fund managers. While international diversification is imperative, South Africa retains its allure as a value investing territory, potentially housing lucrative opportunities in local markets. Entrusting this task to seasoned professionals is not just wise but advisable.

Remaining Vigilant in Times of Change: A Smart Strategy.

In the wake of recent regulatory changes, the decision to augment offshore holdings in South Africa assumes paramount importance. While capitalising on global prospects is pivotal, maintaining a keen awareness of fund manager strategies and market dynamics is equally indispensable. South Africa’s investment landscape may still hold untapped potential, and a vigilant stance can unveil sudden opportunities as the country regains favour.

Global 12: revolutionising the financial industry

In tandem with these developments, Global 12, a digital offshore bank, is on a mission to revolutionise the financial industry. Offering a comprehensive suite of services, including banking, crypto exchange, credit card facilities and private investments, Global 12 aims to provide clients with a seamless, secure, and user-friendly platform. Explore our diverse portfolio of services which include Dedicated IBAN Accounts, SWIFT, SEPA, and Multi-Currency Accounts, all meticulously designed to ensure smooth cross-border transactions and effortless financial management.

Insights from Schalk Louw, Portfolio Manager and Strategist at PSG Wealth Old Oak. #Investing #SouthAfricaInvestments #OffshoreHoldings #FinancialStrategy #Global12

Comments are closed.