Are you curious about offshore investing but unsure where to start? You’re not alone. Offshore investing, often misunderstood as a practice exclusive to the ultra-wealthy, is more accessible and relevant than ever before. In this blog, we’ll demystify offshore investing and explore the offerings of two prominent players in the market: Allan Gray and Ninety One Investments.
Understanding Offshore Investing
At its core, offshore investing involves diversifying your investment portfolio beyond the borders of your home country. It’s about seizing opportunities in international markets, currencies, and assets. Contrary to popular belief, offshore investing isn’t about evading taxes or hiding wealth. It’s a legitimate strategy to optimise returns, manage risks, and access global opportunities.
Why Consider Offshore Investing?
Offshore investing offers a myriad of benefits, including tax efficiency, asset protection, and access to international expertise. By venturing beyond domestic markets, investors can potentially enjoy higher returns and mitigate currency risks. Whether you’re an expat, a frequent traveller, or simply seeking to diversify your investments, offshore investing could be a strategic move for you.
Exploring Allan Gray and Ninety One Investments
Now that we’ve explored the concept of offshore investing and its potential benefits, it’s time to delve into the specifics of Allan Gray and Ninety One Investments’ offshore offerings. These reputable providers offer a range of solutions designed to cater to diverse investment objectives and preferences. From Allan Gray’s tax-efficient Offshore Endowment to the globally diversified funds offered by Ninety One Investments, investors have access to a variety of products tailored to suit their needs. Let’s take a closer look at what each of these providers has to offer in terms of offshore investment opportunities.
Allan Gray:
Known for its disciplined investment approach and long-term focus, Allan Gray provides investors with access to a range of offshore investment options. From equity funds to multi-asset strategies, Allan Gray’s offshore products aim to deliver sustainable growth while managing risk.
For investors seeking offshore opportunities with Allan Gray, three compelling options await, each tailored to meet specific investment objectives and preferences. The Allan Gray Offshore Endowment stands out as a tax-efficient solution ideal for long-term investors with marginal income tax rates exceeding 30%. This product not only offers tax efficiency but also serves as a valuable tool for estate planning, ensuring seamless wealth transfer to beneficiaries without the burden of executor fees. Additionally, investing offshore through an endowment enables diversification across economies and industries, mitigating investment risks and accessing global opportunities not readily available domestically.
Alternatively, Allan Gray presents two globally diversified funds catering to different investment strategies and risk appetites. The Orbis Global Equity Fund (USD) offers a fully invested approach in global equities, benchmarked against the MSCI World Index. With separate management of currency exposure, this fund provides investors with a comprehensive global equity exposure strategy. On the other hand, the Orbis SICAV Global Balanced Fund (USD) offers a diversified portfolio comprising global equities, fixed income, and commodity-linked instruments. Aimed at earning higher long-term returns than its benchmark, this fund employs strategic asset allocation and limited stock market hedging to manage risk effectively.
For those seeking a more focused approach, the Orbis Optimal SA Fund (USD and Euro) presents a hedged portfolio of selected global equities, targeting superior relative value opportunities. With a primary focus on risk management, this fund employs stock market hedging strategies to reduce the risk of loss while maximising potential returns. Whether you’re prioritising tax efficiency, long-term growth, or strategic diversification, Allan Gray’s offshore investment solutions offer a comprehensive suite of options to help you achieve your financial goals with confidence.
Ninety One Investments:
Formerly known as Investec Asset Management, Ninety One Investments boasts a global footprint and a diverse lineup of offshore funds. With expertise across equities, fixed income, and alternatives, Ninety One Investments offers investors the opportunity to capitalise on emerging trends and navigate volatile markets.
The Ninety One Global Life Portfolio presents a compelling opportunity for investors seeking a tax-efficient and streamlined approach to offshore investing. With this offshore policy, investors gain access to a diverse range of international funds covering all asset classes, offering an attractive avenue for global market exposure. One of the standout features of the Global Life Portfolio is its tax efficiency, with all tax administration handled seamlessly within the policy. Investors can benefit from attractive estate planning advantages, including no foreign inheritance taxes for South African resident policyholders upon passing away. Moreover, the flexibility and liquidity of the portfolio ensure that investors can access their funds when needed, with options for interest-free loans and surrender permitted within the first five years, and subsequent flexibility for withdrawals or lump sum payouts. With a minimum investment term of five years and no maximum investment period, the Ninety One Global Life Portfolio provides a versatile and tax-efficient solution for investors looking to navigate the complexities of global markets while optimising their wealth management strategies.
Key Considerations for Offshore Investing
Before diving into offshore investments, it’s essential to consider factors such as tax implications, costs, and eligibility criteria. While offshore investing can be tax-efficient and cost-effective, it’s crucial to understand the associated fees and regulations. Additionally, eligibility requirements may vary depending on the provider and jurisdiction.
As you explore the diverse offerings of Allan Gray and Ninety One Investments for offshore investing, remember that each product is designed to cater to specific investment goals and preferences. Whether you prioritise tax efficiency, long-term growth, or strategic diversification, these reputable providers offer a range of solutions to suit your needs. With Allan Gray’s Offshore Endowment and the globally diversified funds from Ninety One Investments, investors have access to tax-efficient vehicles and strategic asset allocation strategies to navigate the complexities of global markets.
Take the next step in your investment journey with confidence, knowing that you have the expertise and support of these trusted partners behind you.