What Are My Options If I Want A Direct Offshore Non-Rand-Denominated Investment?

If you want to physically take your rands offshore in a foreign-denominated currency investment, you first have to decide if you want to invest directly in shares or exchange-traded funds (ETFs), or if you want to invest in foreign unit trusts, says Magnus de Wet, director of Vista Wealth Management.

- Lloyd Gedye

“When directly investing in shares or ETFs on a foreign stock exchange, the investor would be required to pick the share/ETFs themselves or make use of a stockbroker,” he explains. “By investing in unit trusts, the investor leaves the hard decisions like foreign country weightings and asset allocation to the foreign unit trust manager.

“By investing directly in foreign shares, the investor, however, saves the asset manager fee, which could be substantial,” De Wet says. “But be aware: unlike our local stock market, there are scores of shares and ETFs to pick from when you go international.”