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Once the domain of the uber rich, global investing is now within the means of anyone who is looking for greater diversification of their formerly exclusively domestic portfolio. The red tape and minimum investment entry levels have been relaxed and so now may be a good time to consider looking offshore for higher returns on your investments.

Whilst highly accessible, offshore markets are nevertheless complex places, with vastly different regulatory environments, foreign exchange controls and unfamiliar processes. If you are looking to invest offshore, all these variable prevailing conditions make it essential to find a financial advisor who is fully conversant in the markets of each of the different territories, and not just in the risks and rewards that are associated with hard currency markets.

South Africa is still classified as an emerging market and is vulnerable to activity in some of the more unstable economies on the continent. Overseas bourses and economies are themselves not immune from being impacted by global geopolitics, world commodity prices and other factors, but creating a portfolio offshore offers investors the opportunity to spread risk into different geographies and over a number of currencies.

Investing offshore brings many, new exciting investment opportunities which lie outside South Africa, especially in the technical sector. New developments in Fintech, MedTech, robotics and AI companies are growing in leaps and bounds in Europe and North America and there are many companies looking to grow their R&D capacity through investment. Your financial consultant will be able to advise you which companies are demonstrating the strongest growth and share price trajectory.

Your financial planner, in proposing an offshore portfolio, should take into consideration your exposure to risk, and how risk averse you are. What is likely to be the duration of your investment? If you are investing in your 20s and 30s for retirement you have more time to ride bull and bear markets, but if you are investing later in life, mid to low-risk shares are a better bet. This may be the difference between looking at investing in a tech start up or in a well-established corporation.

Financial planners should be aware at all times of currency and share price fluctuations and be able to be responsive and agile in making adjustments to your portfolio where necessary. Providing constant feedback and access to your portfolio’s performance in the different territories should also be a prerequisite when it comes to selecting an advisor.

Global investment is exciting and dynamic and working together with your financial advisor it can be a fascinating and rewarding way to grow your wealth.

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