First for the professional personal financial adviser
31 MARCH 2025 R69.95 INCL VAT
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OFFSHORE INVESTING Are there still opportunities in the offshore investing space beyond the usual suspects? Absolutely, if you know where to look. Pg 18-23
onald Trump’s return to the White House has ratcheted up tensions around the world, including among South African investors, who have been jealously eyeing impressive market performance in the US for so long. The experts are feeling the weight of uncertainty too, yet it is hard to find one who suggests that investors dramatically change their view on holding a portion of their portfolio offshore. Significant international conflicts in Ukraine and the Middle East, aggressive policy shifts, threats of tariff wars, and generally unpredictable decisionmaking during Trump’s first weeks in power added to investors’ anxieties about the markets, already under pressure from geopolitical tensions.
but also on a market level. Trying to make forecasts based on politics, geopolitical tension and ‘unknowns’ is a losing investment strategy. We prefer to keep our eyes on the fundamentals and valuations, and ensure portfolios are constructed so that no single event in markets can provide a ‘knockout punch’.” The key to successful offshore investing, much like domestic investing, lies in careful planning, discipline and patience. While core investment principles remain the same, offshore investing comes with additional considerations, including currency fluctuations, varying market regulations, and political and economic risks unique to each region. Reacting emotionally to market fluctuations, even when they are driven by game-changing global events, usually leads to costly mistakes. Panic selling locks in losses, and investment decisions driven by fear (or greed) often lead to regret. In good times and in bad, a well-structured investment strategy should focus on the evergreen fundamental principles, including basing your strategy on well-defined goals, maintaining a diversified portfolio, and leveraging compound growth.
There is a lot to be nervous about. But there is always something to be nervous about, even if it is inflated gains, bubbles that threaten to burst, or overexuberance among investors. Investing comes with risk. Those who invest only in ‘risk-free’ assets face the risk of earning returns that are insufficient to offset inflation and meet their future liabilities.
Keep those emotions in check Often, an adviser’s toughest job is to help clients resist the urge to react emotionally to events. As Linda Eedes, Investment Professional at Foord Asset Management, puts it, “Many advisers will tell you this is the most important part of their jobs. Often the best thing to do is nothing.” Describing financial advisers as professional hand-holders, Eedes says, “They hold their client’s hands through difficult times and make sure they don’t make emotionally driven mistakes.”
Image: Getty Images/Anna Moneymaker
HEDGE FUNDS The South African hedge fund industry is currently experiencing record-breaking asset growth and double-digit net inflows for the first time. MoneyMarketing speaks to Peregrine Capital about its success in this field. Pg 16-17
FIDUCIARY DUTY The relationship between financial planner and client calls for fiduciary duty. If you’re unsure as to exactly what this entails, read what the experts have to say.
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Opportunity abounds in an uncertain world
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