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Offshore investment for Trusts made possible through newly listed PrivateClient Global Growth Portfolio

05 December 2018 Private Client Holdings

Private Client Holdings has announced that their PrivateClient Global Growth Portfolio AMC (Actively Managed Certificate) has been listed on the Johannesburg Stock Exchange.

The PrivateClient Global Growth Portfolio is managed by Private Client Portfolios and seeks to provide long-term growth, at a relatively high level of risk by investing in a diversified multi-asset portfolio of offshore listed shares and exchange traded funds (ETF’s). The portfolio aims to optimize risk-adjusted returns by diversifying across a number of asset classes, utilising ETF's to obtain the necessary Alternative, Property and Fixed Income exposure.

Grant Alexander, Director of Private Client Holdings, explains that this investment instrument affords investors the opportunity to access an actively managed global investment portfolio in Rands – which means that they do not need to expatriate funds for foreign investment purposes.

“This makes it is an investment opportunity directly available to Trusts – which other offshore investments vehicles are not.”


“The portfolio is designed to produce inflation beating returns through a balanced asset allocation including equities, fixed income, property and alternative asset classes. Investment growth will be a function of both income growth and capital appreciation. When we look at equity, we have a focus on buying good businesses with positive business momentum at good prices, which we believe enables us to deliver better risk-adjusted returns over the long-term.”

Alexander advises that in addition to Trusts, the PrivateClient Global Growth Portfolio is suitable for investors who are seeking exposure to a global growth portfolio but have either utilised their annual offshore allowance or have SARB approval issues; those who would like to replace the use of locally listed offshore passive ETF strategies with an actively managed equity instrument; those who are able to withstand some market and currency volatility in pursuit of enhanced dollar returns over the medium to long-term; those who are comfortable with some of the volatility associated with equity; and those who have a moderate to high tolerance towards risk.

“We are very pleased to be able to offer investors access to our Offshore Balance Strategy without the need to expatriate funds for foreign investment purposes,” says Alexander. “This also removes reliance on ETF’s to gain offshore exposure through a local segregated investment account and local investment portfolio clients can now access and benefit from the performance of the global investment portfolio through holding the AMC rather than a vanilla index tracking ETF.”

Alexander further explains that retail client’s offshore allowances are not utilised as the AMC is a rand denominated inward listed security. “Inward listed exemption applies to individuals and not institutional investors. Investors that want offshore equity market exposure but have either utilised their annual offshore allowance or have SARB approval issues can still get this exposure. It is also a tax efficient vehicle where portfolio rebalances/reallocations do not create a taxable event.”


Investment Features:


Benchmark: MSCI ACWI (60%), CITI WGBI (30%), LIBID (10%)


Investment universe: Equities, property, preference shares, bonds and exchange traded funds listed on offshore markets and cash.


Investment horizon: 4+ Years


Risk Rating: Growth


Maximum equity exposure: 75%


Regulation 28 compliance: No


Currency: South African Rand


Exchange: Johannesburg Stock Exchange


General Information:


Issuer: UBS AG (London Branch)


Issuer rating: Aa3 Moody's / A+ S&P's / AA- Fitch (This is the long-term credit rating of the Issuer and it does not represent ratings of the Note)


Manager: UBS South Africa (Pty) Ltd


Reference portfolio manager: ABSA Bank Limited


Delegated Reference Portfolio Advisor: Private Client Portfolios (Pty) Ltd (Licence No. 39978)


JSE Alpha Code: UPCHPA


ISIN: ZAE000263943

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