Despite how the South African market has opened up over the last 20 years, many South Africans still see investing as a purely local exercise. The bulk of their assets are held in South African unit trusts, local real estate and deposits with local banks.
To a large extent this has to do with how this countrys economy was historically isolated from the rest of the world. Exchange controls made it very difficult to take money offshore, and so investing in international assets was just not seen as an option.
Most of us dont think globally, says Helena Conradie, the CEO of Satrix. Thats because the products havent been available, and there were a number of hurdles to investing offshore.
That has however changed significantly with the relaxing of exchange controls and a wider range of international products becoming available on the local market. At the same time, perceptions around investing offshore have also changed.
As much as in the past there was a perception that buying stocks on the JSE was only for the wealthy, there was also a belief that to invest offshore you had to be super wealthy, says Conradie.
But that mental hurdle is being overcome as more product providers offer much easier access.
Increasingly, investors are also coming to understand the benefits of not having all of their wealth concentrated in South Africa. They are appreciating the need for diversification.
All South Africans need some offshore exposure in their portfolios, Conradie argues. While South Africa has world class companies, there are many industries, economic regimes and currencies you are simply not able to access by keeping all your capital in domestic assets.
At the same time, investors are looking to reduce risk of being exposed to just one country, particularly with the levels of political uncertainty that are prevalent not just here but in many parts of the world.
The importance of diversification is being reinforced every day by just looking at the reality across the globe, says Conradie. The political environment across the world, not just in emerging markets, shows how you cant afford to have all of your money in a single country.
Widening the net
International investment opportunities can broadly be divided into developed and emerging markets. Conradie believes that its important for investors to consider both.
Developed markets offer more stability in terms of their established economic systems, although not necessarily their politics, she says. But they also have less potential for growth, which is why investors should consider some exposure to emerging markets. These are the worlds up-and-coming economies, and investing there gives you the opportunity to grow with them.
Emerging markets may also offer exposure to new growth industries that are not found in developed economies.
If you take an overall view of the world, each country has a major industry, a major product, and a culture that drives it in a certain way, Conradie notes. No place is the same, and that diversity is what you want to get exposure to.
Getting access
The growing appreciation of international investments amongst South African investors has been happening at the same time that index-tracking products have become more widely available. This has given investors an attractive way to gain offshore exposure.
Index trackers are great options because they are broad based, cost effective and there are choices available to suit all needs. says Conradie. You get exposure to world class companies, but you dont have to choose them yourself. You are also diversified in terms of country exposure, but you dont have to pick those countries. The index does it for you.
Satrix is currently finalising the listing process with the JSE and will soon be launching three international exchange-traded funds. These will give investors a way to access these markets as simply as buying a local share, and without having to deal with any exchange control regulations.
The three funds are the Satrix MSCI World ETF, which offers a broad exposure to developed markets; the Satrix S&P 500 ETF, which tracks the iconic large-cap index in the US; and the Satrix MSCI Emerging Markets ETF, which includes companies in markets such as China, South Korea and India.
These give investors a very simple way to broaden their investment universe.
To access these ETFs is very simple, says Conradie. You could buy your offshore exposure online via a platform like SatrixNOW while enjoying a cup of coffee. And in keeping with our purpose of democratising investing, there is no minimum investment amount and no annual platform fee when you invest via SatrixNOW.
This article was brought to you by Satrix.
See original here:
Simple offshore exposure - Moneyweb.co.za
- Home | Discover Oil & Gas | Rigzone [Last Updated On: December 8th, 2016] [Originally Added On: December 8th, 2016]
- Offshore - Wikipedia [Last Updated On: December 8th, 2016] [Originally Added On: December 8th, 2016]
- EscapeArtist - Live, Work, Travel, Retire & Invest Overseas [Last Updated On: December 15th, 2016] [Originally Added On: December 15th, 2016]
- Offshore installation manager - Wikipedia [Last Updated On: December 30th, 2016] [Originally Added On: December 30th, 2016]
- Offshore Energy 17 [Last Updated On: January 12th, 2017] [Originally Added On: January 12th, 2017]
- Offshore Drilling and Exploration - The New York Times [Last Updated On: February 2nd, 2017] [Originally Added On: February 2nd, 2017]
- Offshore - novenco-marine.com.php56serv2.webhosting.dk [Last Updated On: February 5th, 2017] [Originally Added On: February 5th, 2017]
- Further decline in North Sea offshore supply work - BBC News [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Japan ignores protests, begins offshore construction work on ... - RT [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Offshore Drillers Are Still Seeking Recovery Enjoyed by Shale - Bloomberg [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Offshore Profits and US Exports - Council on Foreign Relations (blog) [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- Diamond Offshore Surprises Everyone With a Fourth Quarter Earnings Gain - Madison.com [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- Dems: Don't repeal offshore tax rules - The Hill [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- Offshore Wind Moves Into Energy's Mainstream - New York Times [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- Trump's Plan to Tap Offshore Profit for Infrastructure Gains an Ally - Bloomberg [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- China Regulator Urges Insurers to Avoid 'Reckless' Offshore ... - Insurance Journal [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Perriello comes out against pipeline and, in a shift, says he is skeptical of offshore drilling - Washington Post [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- AGL to head offshore amid limited growth options locally - The Sydney Morning Herald [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Should Diamond Offshore (DO) Stock Be in Your Portfolio? - Zacks.com [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Wind Overtakes Coal Power in Europe as Turbines Head Offshore - Bloomberg [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Cuba Eager to Develop Offshore Oil Reserves | OilPrice.com - OilPrice.com [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Eni starts production of East Hub Development Project, offshore Angola - Offshore Technology [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- 'Fifty Shades Darker' Unmasks $22M In Offshore Foreplay International Box Office - Deadline [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Statoil looks to Newfoundland offshore after selling off all oilsands assets - Globalnews.ca [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Coalition urged to charge 10% royalty on offshore oil and gas projects - The Guardian [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Israel Puts Off License Award In First Offshore Oil, Gas Bid Round - OilPrice.com [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Cost Impact of Immigration and Visa Reform to US Customers Using Offshore Services - Forbes [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- These Offshore Drilling Stocks Are Up Big as Earnings Season Starts - Fox Business [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Offshore projects help raise profile of wind power in US, Europe - WorkBoat (blog) [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- Shares of Seadrill Went in the Exact Opposite Direction of Other Offshore Drillers in January - Motley Fool [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- After selling off all oilsands assets, Statoil looks to Newfoundland offshore - Calgary Herald [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- Oil and Gas Stock Roundup: The Outlook for Offshore Drilling Continues to Dim - Fox Business [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- Diamond Offshore Surprises Everyone With a Fourth Quarter ... - Motley Fool [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- Diamond Offshore Is A Hold - Seeking Alpha [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- Trudeau: Arctic offshore drilling too dangerous - The Independent Barents Observer [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- Don't Overlook This Cost-Effective Alternative To Offshore Services - Forbes [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]
- Legislation could mean an economic boost in New Bedford offshore wind projects - SouthCoastToday.com [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]
- Ontario signals extension on offshore wind project moratorium - BNN [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]
- Oil Majors' Plans - No Relief For Offshore Drillers - Seeking Alpha [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]
- Director hits back at offshore worker blacklisting claims - BBC News [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]
- OPEC Report: Pressure On Offshore Drilling Remains - Seeking Alpha [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- UK Offshore Wind Construction Had Bumper Year In 2016, Barbour ABI - CleanTechnica [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Trump urged to back offshore - Offshore Wind | reNEWS ... - reNews [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Russian Spy Ship Spotted Offshore From Connecticut; Congressman Says Goal Is To Test US - CBS Local [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Australia Accused Of Committing Crimes Against Humanity In Offshore Detention Centres - BuzzFeed News [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- US Wind Secures Cabling Partner For MD Offshore Project - North American Windpower [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Professional Diversity Network: Offshore Investment Fund, Dropping ... - Seeking Alpha [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Vineyard Power vying for offshore wind farm - News - capecodtimes ... - Cape Cod Times (subscription) [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Liquidity Warnings Send Hornbeck Offshore Services, Inc.'s Stock Plunging - Motley Fool [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Will Offshore Stymie Oil States? - Seeking Alpha [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Enbridge Partners with EnBW on 497-MW German Offshore Wind Project - Marketwired (press release) [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- JDR lands US offshore bounty - reNews [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- Natural gas leaks from offshore pipeline in Alaska - Press Herald [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- Halliburton's GRIP delivers rapid response to offshore source-control incidents - WorldOil (subscription) [Last Updated On: February 18th, 2017] [Originally Added On: February 18th, 2017]
- Model advances analysis of offshore BOP closure during extreme conditions - WorldOil (subscription) [Last Updated On: February 18th, 2017] [Originally Added On: February 18th, 2017]
- IRS Cracks Down on Offshore Tax Cheats - CPAPracticeAdvisor.com [Last Updated On: February 18th, 2017] [Originally Added On: February 18th, 2017]
- Vineyard Power vying for offshore wind farm - Cape Cod Times (subscription) [Last Updated On: February 18th, 2017] [Originally Added On: February 18th, 2017]
- Offshore Yuan Exposed to Onshore Risks as Spread Narrows - DailyFX [Last Updated On: February 18th, 2017] [Originally Added On: February 18th, 2017]
- Offshore Somalia: East Africa's Oil Frontier - Midnimo Information Center [Last Updated On: February 20th, 2017] [Originally Added On: February 20th, 2017]
- Emas Offshore refinancing deal delayed - Splash 247 - Splash 247 [Last Updated On: February 20th, 2017] [Originally Added On: February 20th, 2017]
- The Offshore Markets: 2016 In Review - Hellenic Shipping News Worldwide [Last Updated On: February 20th, 2017] [Originally Added On: February 20th, 2017]
- Court Declines to Halt Long Island Offshore Wind Lease - RTO Insider [Last Updated On: February 20th, 2017] [Originally Added On: February 20th, 2017]
- Fuel the American economy with offshore energy - The Detroit News [Last Updated On: February 20th, 2017] [Originally Added On: February 20th, 2017]
- Congress says won't renew liquor licenses of offshore casinos in Goa - Times of India [Last Updated On: February 20th, 2017] [Originally Added On: February 20th, 2017]
- An offshore deal for Indigenous people? - Policy Options (registration) [Last Updated On: February 20th, 2017] [Originally Added On: February 20th, 2017]
- Exclusive: Petronas considers $1 billion stake sale in offshore gas project - sources - Reuters [Last Updated On: February 20th, 2017] [Originally Added On: February 20th, 2017]
- JDR wins US offshore wind farm work - OE Digital [Last Updated On: February 20th, 2017] [Originally Added On: February 20th, 2017]
- Offshore Drilling - 2 Floaters Needed In The Verbier Field And In The Partridge Prospect In UK North Sea - Seeking Alpha [Last Updated On: February 20th, 2017] [Originally Added On: February 20th, 2017]
- Rystad Energy Believes That Offshore Projects Are Becoming Competitive Again - Seeking Alpha [Last Updated On: February 20th, 2017] [Originally Added On: February 20th, 2017]
- EnBW Hohe See 500 MW Offshore Wind Farm To Proceed With Siemens & Enbridge - CleanTechnica [Last Updated On: February 20th, 2017] [Originally Added On: February 20th, 2017]
- Offshore catering staff reject offer after phone ballot - BBC News [Last Updated On: February 21st, 2017] [Originally Added On: February 21st, 2017]
- Child abuse inquiry to hold limited public hearings into offshore ... - The Guardian [Last Updated On: February 21st, 2017] [Originally Added On: February 21st, 2017]
- Iberdrola Completes Installation Of First Turbine At 350 Megawatt ... - CleanTechnica [Last Updated On: February 22nd, 2017] [Originally Added On: February 22nd, 2017]
- Offshore drilling opponents re-gear for new round of battles | News ... - Charleston Post Courier [Last Updated On: February 22nd, 2017] [Originally Added On: February 22nd, 2017]
- Hornbeck Offshore Services: Too Many Problems Will Drag The Stock Further Down - Seeking Alpha [Last Updated On: February 22nd, 2017] [Originally Added On: February 22nd, 2017]
- US grid can handle more offshore wind power, cutting pollution and power costs - Science Daily [Last Updated On: February 22nd, 2017] [Originally Added On: February 22nd, 2017]
- Fugro to conduct natural leakage survey in offshore Kenya ... - Offshore Technology [Last Updated On: February 23rd, 2017] [Originally Added On: February 23rd, 2017]
- Russia inks second Turkish Stream pipe offshore construction contract - New Europe [Last Updated On: February 23rd, 2017] [Originally Added On: February 23rd, 2017]
- Trump to seek jobs advice from firms that offshore US work - Reuters [Last Updated On: February 23rd, 2017] [Originally Added On: February 23rd, 2017]
- W&T Offshore Expected to Reduce Net Losses in 4Q16 - Market Realist [Last Updated On: February 24th, 2017] [Originally Added On: February 24th, 2017]