What to do if you want to take money offshore?
We have been receiving more and more enquiries regarding offshore investments. Most investors and fund managers see more opportunities in offshore markets, especially those investors with a “value” perspective in mind.

There are 2 ways of investing offshore:
1. Directly offshore using your annual offshore allowance, and
2. Using ‘Feeder Funds’ and utilising the management company’s offshore allowance.

Investing directly offshore means taking your hard earned Rands and converting them to some other currency and investing in that currency’s investment instruments. To be able to do this, you need a Forex trader (like a bank) to convert your currency. This is however not as simple as doing an EFT. If investing less than R1 million, you can do so without tax clearance, but anything between R1 million and R10 million (per year) has to go through a tax clearance process before it can be converted and taken offshore.

The second way is to invest in a ‘Feeder Fund’. This is a fund that invests in offshore assets but converts the Net Asset Value of the fund back to Rands. This is a perfect strategy if you wish to invest in offshore markets and you are a bit bearish on the Rand vs the other currency. This is particularly attractive if you are not planning on leaving the country and you were going to convert back to Rands at some time anyway.

For more information:
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If you have any other queries feel free to contact us!
Happy investing!