OFFSHORE PORTFOLIO CONSTRUCTION
Investing money in a country or jurisdiction outside of South Africa
As the world moves into one, more opportunities, risks and threats arise globally. It has become apparent that diversification of assets is essential. This is not only to protect wealth, but also to grow it in global terms. With South Africa making up only a small portion of the world’s GDP, offshore diversification is an essential element in any investors' portfolio.
Current trends indicate that around half your family will reside outside your country of residence; this together with the threat of crime and political uncertainty in Africa means that preserving and growing wealth requires a sustainable offshore portfolio.
Silvertree holds contracts with all the major product providers such as Allan Gray, Momentum, Old Mutual and Sanlam and the funds that fall under their management, allowing the investor a comprehensive choice of investment vehicles. All the funds are FSP-approved funds that have good long-term track records and are managed by well-known fund managers. Offshore portfolios are constructed on their specific risk model using the following asset classes: property, equities, cash, bonds, hedge funds and commodities.
Offshore portfolios can be built using one of two means: Either directly using the tax clearance window that allows for up to R10 million to be invested offshore annually, or via Rand denominated offshore funds, which involves no tax clearances or implications. Preference is dependent on an investor’s circumstances and needs and our advisors will carefully consider a client’s financial situation, future goals, their investor experience, their risk profile and their current offshore exposure before presenting a proposed investor portfolio.
The Silvertree difference
In addition, our advisors caution clients to make informed decisions based on solid planning, not emotional decisions based on the current political and economic climate and their fears.
Silvertree also assists in the opening of offshore bank accounts, application for tax clearance and the transmittance of the funds offshore, often working closely with other professionals like lawyers and accountants.
Most importantly, Silvertree actively manages clients' portfolios to ensure continued success. All portfolios are reviewed annually but regular evaluations on performance are also conducted depending on the clients' needs.