New offshore solutions from PSG

Adriaan Pask, Chief Investment Officer for PSG Wealth.

With the state of the Rand a constant topic of discussion among South Africans, getting your money offshore is a strong focus for investors. The SA Reserve Bank now allows each individual to invest up to R10 million every year, but where, and how should you invest?

PSG Wealth has fleshed out its range of offshore unit trusts, and now offers a full suite of multi-managed funds across the risk spectrum. The funds range from more conservative products focused on outperforming cash to more aggressive equity-linked funds. Both US dollar and pound sterling classes are available.

“We have added the new Global Preserver and Global Flexible mandates to complement our existing Global Moderate and Global Creator mandates,” says Adriaan Pask, Chief Investment Officer for PSG Wealth. “This allows us to cater to varying investor needs, irrespective of their appetite for risk.”

While the Rand is still significantly volatile, the current respite presents an opportunity for investors to add to – or start ? their offshore portfolio.

“Offshore investing lets you spread your investment risk across different economies, regions, sectors and securities. This means that when one area of the portfolio comes under pressure from region-specific economic or political developments, another area of the portfolio may be unaffected. This will support performance and reduce overall portfolio volatility,” Pask says.

In addition, investing in global markets offers you access to specialist sectors like bio technology and specialist pharmaceutical sectors, and to globally loved brands like Johnson & Johnson, Microsoft and Nestle.

“By investing offshore investors greatly increase their investment opportunity set on both funds and equities,” says Pask. Locally there are approximately 1,300 funds registered with the Financial Services Board while globally there are over 200,000 funds available. Similarly, there are less than 300 stocks listed on the JSE’s main board, where there are roughly 60,000 equities listed globally.

PSG Wealth’s new Global Preserver Fund of funds has a mandate to invest in a range of asset types providing the equity component doesn’t exceed 35%. The new Global Flexible Fund of funds has a largely unconstrained mandate to invest in a range of asset types. These two funds round out the company’s existing Global Moderate Fund of funds and Global Creator Fund of funds. The former is a multi-asset mandate where the equity component will usually be between 35% and 65% and the latter principally invests in shares from around the globe.