June 2019: Offshore Investing

Let’s get real about Investing offshore!

So you haven’t invested offshore yet? What are you waiting for?

For some time we have been reminding investors of the wisdom of diversifying their investment portfolios offshore. The reasons for diversifying investments offshore remain compelling.

Offshore investments provide access to companies and industries that are not available in South Africa.
The South African Rand is likely to continue depreciating in the medium to long term. (This means that as the Rand weakens in value the investment value increases and vice versa)
Investing offshore provides access to investment funds denominated in “hard currency” such as US Dollars, Euro and Sterling.
Investing offshore reduces the geo-political risk associated with South Africa.
There is a wide array of global and regional funds to choose from.

Investec Global Multi-Asset Income Fund

The Investec Global Multi-Asset Income Fund was launched in 2011 and has a five-star rating by Morningstar and it was a Raging Bull Award winner in 2018. The fund is a relatively low-risk fund that attempts to provide an attractive income with capital growth over the long term. The fund targets a sustainable yield of 4-6% per annum distributed on a monthly basis.

Investments can be made into the fund via Investec’s Global Select Access product. The product has a number of estate planning benefits:

Investors can nominate multiple beneficiaries.
No capital gains tax is payable when the policy is transferred into the name of a beneficiary.
If an investor nominates a beneficiary, no executors’ fees are levied.
If an investor’s spouse is the nominated beneficiary, no estate duty is payable.
The proceeds are transferred directly to the beneficiary, instead of being frozen with other assets in your estate.
If the investor is a South African resident on death, no foreign inheritance taxes will be payable. This is because the investor owns a policy domiciled in Guernsey, and no foreign inheritance taxes are currently payable in Guernsey. However, estate duty may be payable in South Africa.
There is no requirement to apply for an offshore grant of probate (appointing a foreign agent to wind up foreign assets) if a beneficiary has been nominated who is able to receive the benefit.

Marriott Income Specialists Investment Presentation

Kevin Mills Financial Services is pleased to host an investment presentation. Our guest speaker is Duggan Matthews, Chief Investment Officer at Marriott Income Specialists.

Duggan has attained the following qualifications; BBA (Hons), Strategic Mgmt (Hons), CFA, MBA and has been in the investment industry since 2006 has a wealth of investment knowledge. He leads the Investment Team and is responsible for both primary and secondary research in the securities market, as well as monitoring broad macro-economic variables. Duggan is a member of the Investment Analysts Society of Southern Africa.

Established in 1862, Marriott Asset Managers is one of the oldest financial services businesses in the country. They currently have over R23 billion in assets under management, and offer a number of investment products including South African unit trusts and investment products, international unit trusts, an offshore share portfolio and a direct UK property solution.

We are delighted to welcome Duggan! To book your seat please contact the office on 041 373 0601.

Investing Offshore just got easier

Allan Gray introduce Rand lump sum offshore investments

Allan Gray has recently launched a new offering where investors can deposit local currency into Allan Gray’s bank account and Allan Gray will facilitate the conversion into foreign currency.

Investors can now invest into a new offshore investment from R20, 000, whilst existing investors can add to their investments from as little as R5, 000.

Benefits of investing offshore:

South Africa represents less than 1% of the world economy. Investing offshore allows investors to spread their investment risk across different economies and regions.
Investing offshore provides access to industries and companies that may not be available in South Africa.
The Rand has decreased in value by 8.2% to the US Dollar over the past five years. We expect the Rand to continue to depreciate in the medium to long term.
Investing offshore offers diversification benefits, reduced emerging market and currency risk as well as maintaining hard currency spending power.

Orbis SICAV Global Balanced Fund

The Orbis SICAV Global Balanced Fund seeks to balance appreciation of capital, income generation and risk of loss with a diversified global portfolio of equity, fixed income and commodity-linked instruments. The fund is suitable for investors who are looking for capital appreciation without being fully exposed to equity markets.

Fund returns for the Orbis SICAV Global Balanced Fund (US Dollars):

Since Fund inception: 8.2%

5 year returns: 5.7%

3 year returns: 11.4%

This is a fantastic opportunity for investors to diversify their investment and access offshore investment opportunities. For more information please contact us at 0027 41 373 0601 or you can get in contact with us here

July 2018: Tour De France and the case for investing offshore

Wow, Le Tour de France never fails to delight!

The cycling is a wonderful test of athletic endurance. Wow, isn’t the scenery beautiful? Le Tour takes the viewer on a spectacular journey as the route meanders through the most beautiful villages, passed quaint medieval churches, along mountain roads, farms and valleys. It is simply a magnificent sight!

Those of you who are watching, glued to your television sets, may have noticed that Marriott Income Specialists are sponsoring the television rights in South Africa. They are advertising a very attractive offshore product!

The Marriott First World Hybrid Real Estate Fund is a real estate investment company that invests in a combination of direct real estate and listed real estate investment trusts. The objective of this Fund is to combine the benefits of direct and listed First World real estate to generate a reliable, predictable and growing Sterling income. With the majority of the return generated from the income yield, the investment outcome can be anticipated with a reasonable degree of certainty.

Here are the latest performance figures:

Marriott’s First World Hybrid Fund Returns

Drone footage of three key properties can be viewed via this link First World Hybrid Property video. The properties featured in this footage are:

Crown Packaging Manufacturing – Leicester
Keepmoat – Lakeside, Doncaster
Wickes – Grimsby, East Lincolnshire

When is the right time to invest offshore?

The spreadsheet attached allows investors to input their capital available and to see how the strengthening or weakening of the currency will affect their investment. Over the past 10 years the South African Rand has depreciated against Sterling on average by 2% per year. Were this to continue over the next 10 years then £1 British pound would cost a South African investor more than R21.

Expected investment returns

Give us a call to find out how you can invest into this attractive real estate fund and earn a Sterling-based income!