Why offshore diversification is essential for local investors

TODAY'S investment landscape is increasingly complex for South African investors, amid heightened market volatility and political uncertainty. Offshore investing remains a critically relevant strategy for preserving and growing wealth while managing risk. Diversifying beyond South African borders is not just a luxury; it's a necessary consideration for prudent portfolio management.

- ADRIAAN PASK

Why consider offshore exposure?

From currency fluctuations to policy shifts, the South African market has historically faced a range of economic and political challenges that directly impact local asset performance. Offshore investing offers several key advantages to navigate this unpredictability:

Diversification of risk: Offshore assets allow investors to reduce the concentration risk embedded in their domestic portfolios. By spreading capital across global markets, sectors, and currencies, investors are less vulnerable to country-specific downturns.

• Access to growth opportunities: Many of the fastest-growing companies and sectors especially in technology, healthcare, and consumer discretionary are found outside South African borders. Offshore investing provides access to high-quality companies and markets that are not available locally.