Welcome to our Investing Offshore Special Edition of Blue Chip. a quarterly journal for the financial planning industry and the official publication of the Financial Planning Institute of Southern Africa NPC (FPI). Blue Chip publishes contributions from FPI and other leading industry figures, covering all aspects of the financial planning industry.
On the money Making
On the money Making waves this quarter Let OUTvest help you with that long tail While your advice practice is focusing on those bigger client relationships, it doesn’t leave much time for the rest. Which is why you need the solutions that streamline the way you do business, without compromising on quality. OUTvest for Financial Advisors does exactly that – and gives you the opportunity to scale. Imagine being able to meet a client, plan their investments and onboard them in a single sitting – even remotely. Imagine having Section 14 transfers done for you. Imagine your yearly reviews… automated. Imagine offering your clients true OUTcomes-focused investing, giving you (and them) the ability to track their progress against their plan, in real time. Imagine helping to give your clients a better financial future thanks to extremely efficient fee structures. It’s all available to your advice practice, right now. Get in touch today and we will be happy to set up a demonstration of the platform, showcase our products (including solutions for retirement investing, global investing, fixed-rate investing, taxfree investing, general investing and crowd investing) and share with you the performance of our unit trust, money market and exchange traded funds versus their peers. Navigate to the Financial Advisors page on www.outvest.co.za to submit a call back or send an email directly to Rishai Neerachand at NeerachandR@out.co.za OUTvest is an authorised FSP. Ts and Cs apply. Investing offshore by staying local offers potential tax advantages By Nosipho Nhleko, Investment Product Specialist at Liberty South African investors who find themselves having to cope with the volatility of local markets have long looked towards distant shores to seek better returns for their money because of the strength of advanced economies with leading companies like Apple, Facebook, Alphabet (aka Google) and Netflix generating extraordinary returns. In doing this, selecting the right investment vehicle to take advantage of this offshore exposure is one of the choices you will be faced with. Depending on the way you choose to invest your money, there may be tax advantages, as well as additional benefits for the rest of your family in the long run. While the JSE is one of the most advanced exchanges in the world, with a proven track record of good local companies, the process of diversifying your portfolio brings many rewards. It’s no secret that South Africa makes up only a tiny portion of the world’s capital markets. With the relaxation of exchange controls and a discretionary allowance of up to R10-million per year available to invest overseas, many money-savvy ordinary investors are investigating ways to get into these markets. By putting your money in an offshore investment vehicle through a local money manager, you can decrease your exposure to the South African economy, while accessing different countries with different economies and invest in shares of some of the most profitable companies in the world. With something like this you can also invest in offshore index trackers, which include equity, bond and cash trackers. Tracker funds reduce the costs of investing offshore due to their low management fees. One of the other advantages of staying with your local money manager is that you can further reduce your costs with lower platform fees by taking advantage of the aggregation benefit if you own other qualifying products with them. Something not always considered by many investors is the managing of your estate. Some local investment products use an endowment wrapper, so no additional tax is payable when you need your money if you are the original owner. The investment will be dealt with under South African rules and can be transferred into an offshore or local bank account of your choice.
The world is so much bigger than Diagonal Street. From Canadian railways to global fashion luxury brands, the world is yours. To invest with Coronation, ask your financial adviser or search ‘Coronation offshore’. Good things come to those who don’t wait to invest. Coronation is an authorised financial services provider.
