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Against what has become a progressively worrisome backdrop to South Africa’s macroeconomic outlook, it is probably not surprising that we are currently receiving the undesirable attention of global ratings agencies. This year the country is expected to grow by a meagre 0.5%, with risks to the downside.
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?
While most active fund managers argue that their skills enable them to outperform the market return, the majority of research proves what passive managers have known all along – that even though it may be possible for a fund to outperform the market, it is generally not probable.
No one can be certain what markets will do going forward or what returns will be like for various asset classes in 2016.
The strongest deterrent against FSP compliance missteps is or should be: