Empowering global investing

In today’s interconnected world, diversifying your investments beyond South Africa’s borders is no longer a luxury; it’s a strategic necessity.

South Africa represents less than 0.5% of the world economy. With international exposure, individuals can benefit from investing in some of the world's largest global companies and markets. This can enhance diversification opportunities when they invest and provide protection against rand weakness, helping them grow their wealth over the long term.

At Momentum Wealth International’s offshore investing roadshow, hosted nationwide in September and attended by more than a thousand advisers, we shared practical strategies to help advisers navigate the increasingly complex offshore investment landscape.

By offering clients access to global economies, hard currencies, and new sectors, offshore investing becomes a critical tool for long-term growth, wealth creation and risk management. The advantages of investing offshore include:

1. Expanding opportunities through diversification: Offshore investing opens the door to diverse global markets, economies, and currencies. By allocating capital internationally, clients reduce country-specific risk and gain access to a broader opportunity set across sectors and geographies.
2. Preparing for future offshore expenses: Whether planning to educate children abroad, buy property, emigrate, or retire internationally, offshore investments can help clients ensure their wealth is aligned with future currency and location needs.
3. Rand hedging and risk management: Investing offshore helps protect against rand weakening, inflation, and interest rate volatility. Clients gain stability through hard currency exposure.
4. Mitigating political and economic risk: Offshore allocations offer a safeguard against South Africa’s political and economic fluctuations, providing peace of mind through global diversification.
5. Access to growth sectors and leading companies: Global markets provide access to dynamic sectors like technology, healthcare, clean energy, and high-growth companies not listed in South Africa.

“We believe in the value of financial advice,” says Hymne Landman, CEO of Wealth Management at Momentum Wealth.

“Regularly consulting a financial adviser and doing so before making any changes to investments can assist clients in remaining invested and increasing their likelihood of achieving their financial goals. The decisions made regarding an investment portfolio will directly impact its returns. For this reason, we believe that financial advisers are ideally positioned to help clients make these essential decisions.”

We also introduced our newly enhanced Momentum Wealth International proposition, which includes two distinct investment options – the Global Wealth Endowment and the Global Wealth Investment – to meet the offshore investing needs of a wide variety of South African clients. The Global Wealth Endowment is ideal for high-net-worth individuals focused on intergenerational wealth transfer and estate planning, whereas the Global Wealth Investment could suit clients who prefer managing their own tax affairs or live in tax-neutral jurisdictions, offering portability, control, and transparency.

Recognising the significance of engaging a financial adviser, Momentum Wealth has consequently made the use of a financial adviser a prerequisite for using these two investment options.

Says Landman, “Momentum Wealth International empowers South Africans to invest globally with confidence, offering an offshore investment platform that is secure, flexible, and tailored to individual needs.

Through the platform and its investment options, clients have access to a wide range of global funds, spanning multiple sectors, geographies, and currencies. Whether clients seek active management, exchange-traded funds, model portfolios, or international personal share portfolios, the platform provides the tools to build globally diversified strategies that are aligned with their unique goals and risk profiles.

Momentum Wealth International is based in Guernsey, a globally respected offshore financial centre renowned for its tax neutrality, robust legal protection, political and economic stability, and absence of exchange controls, which facilitate the free movement of capital and simplify global transactions.

Advisers benefit from on-the-ground support in South Africa, access to offshore specialists, and a network of legal, tax, and fiduciary experts. Whether navigating exchange control, emigration, or complex estate planning, it provides expert guidance every step of the way.

The platform caters to a diverse range of clients, including individuals and families, trusts, and companies, making global investing accessible and strategic.

Concludes Landman, “Together with our investment partners, Curate Investments, Equilibrium and Momentum Securities, who joined us on the national roadshow, we help empower financial advisers with the tools to offer holistic, future-fit global advice. Each person’s investing journey to success is unique and personal. With Momentum Wealth, you can shape that journey in the most singular way.”