By: Standard Bank Wealth International
South Africa accounts for less than 0.5 percent of the world’s gross domestic products, or GDP. Investors who therefore expand their horizons beyond local borders have access to the other 99.5 percent, which makes a strong case for diversification and investing in international markets.
There are other benefits to offshore investments as well, including diversifying wealth across different markets and asset classes, particularly if investors are based in a region characterised by weaker economies, volatile currencies and socio-political risks. Many investors are weighing the pros and cons of investing offshore while the rand is weak, against diversifying their portfolios as soon as possible to protect them from further upheavals and for long-term growth and stability. Our goal is to help you navigate these decisions.
Global risks
There are some risks associated with international markets. Tensions between the United States and China continue to rise, impacting global markets, and Covid-19’s influence is being felt around the world as economies contract. However, we believe that even in the current environment, which is characterised by immense uncertainty, diversification and the benefits of investing offshore protect and grow an investor’s wealth by ensuring that they are not over-invested in any one place, fund or asset. Markets, countries and industries are impacted differently at different times, even during a global pandemic, and ensuring that one’s wealth is spread out helps to maintain it – and grow it.
Investment strategies to protect long-term wealth
Here are three reasons why it’s sensible to consider offshore investment strategies.
1. Building wealth in international markets is a sensible choice. At the core of building offshore wealth is a diversification strategy that ensures that all one’s assets are not in the same place and that they, therefore, cannot be wiped out by a single event.
2. There are many stable economies to invest in. One of the benefits of offshore investing is that investors can focus on highly regulated and established markets. For example, Isle of Man and Jersey have a strong track record, regulatory environment and reputation. When there is global upheaval, such as during a pandemic, stable regions weather the storm and are more likely to recover.
3. Offshore investing opens access to global markets. Investing through Isle of Man or Jersey gives investors access to the UK property market as well as UK and European stock exchanges.
Offshore investments
Long-term wealth creation is important to our clients, which is why Standard Bank Wealth International has offices in Jersey and Isle of Man to assist our clients in their wealth diversification and international investment strategies.
Our investment solutions include capital protected products, investment funds and buy-to-let property investments, and our expertise encompasses asset classes, markets and investment opportunities across the globe. There’s no better place if you want to achieve your goals.
These products and services are provided by Standard Bank Offshore Limited’s subsidiaries in Jersey and the Isle of Man. Standard Bank Jersey Limited is regulated by the Jersey Financial Services Commission. Standard Bank House, 47-49 La Motte Street, St Helier, Jersey, JE2 4SZ. Registered in Jersey No 12999.
Standard Bank Isle of Man Limited is licensed by the Isle of Man Financial Services Authority. Standard Bank House, One Circular Road, Douglas, Isle of Man, IM1 1SB. Registered in the Isle of Man No.4713C.
The Standard Bank of South Africa Limited (‘’Standard Bank’’), an authorised Financial Services Provider (FSP number 11287) and registered credit provider (NCRCP15). The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06).
