Offshore investment and your portfolio

Popular arguments for investing outside of South Africa include:

• Portfolio diversification
• Hedging against the possible devaluation of the SA Rand
• Gaining exposure to investment opportunities that are not available in the domestic market
• Reducing country risk

In a recent article written by Pieter Koekemoer of Coronation Fund Managers in ‘Correspondent’ [April 2008 edition], he examines the investment opportunities beyond developed equity markets. At the turn of the millennium [2000] emerging markets represented less than 15% of global economic output, compared to around 30% today. This rapid expansion is the result of much faster economic growth in the emerging world. This will continue through 2008 and beyond, with emerging markets expected to deliver more than 70% of growth in the global economy this year.

Koekemoer gives some very interesting insight into changes to the world economic order. Naturally some caution in investing in emerging markets is required and this is why Silke Financial Services recommends investing in portfolios that actively seek out investment opportunities throughout the world and which continually bias their portfolios to those companies and economies showing the greatest potential in the developed and emerging markets.

Silke Financial Services has the skill and expertise to advise clients on all aspects of offshore and local funds to suit your individual time horizon and tolerance for risk.