Money …
INVESTING OFFSHORE NOT WHEN BY PIETER KOEKEMOER, HEAD OF PERSONAL INVESTMENTS, CORONATION
International assets improve
performances. Another point to
your portfolio by diversifying
ponder is how US equity market
economical, jurisdictional,
returns dominated over the past
currency, industry and company-
decade. There is no guarantee
ith persisting
specific risks, without necessarily
that this outcome will be repeated
uncertainty around our
reducing one’s expected long-
over the next decade, especially
country’s economic
term returns.
considering the high valuations
W
future, we understand that many
Just consider the growth
base in the US.
South Africans may feel unsettled
opportunities available through
about their own financial futures.
the more than 5 000 investable
At Coronation, we believe that
shares in the global universe that
ACCESSING INTERNATIONAL ASSETS WITH CORONATION
no matter the current market
are not available in the local equity
1. The hassle-free option
sentiment, it’s always a good time
market, which consists of only 160
Investors in Coronation’s
to consider the long-term benefits
investable shares.
multi-asset funds already have considerable offshore
of owning a balanced portfolio of
exposure. This is due to these
assets. It’s not a question of when
NO ASSET CLASS WINS ALL THE TIME
to invest offshore, but rather how.
While much of the current
consisting of both direct offshore
emphasis is on how global markets
exposure and indirect exposure
THE VALUE OF OFFSHORE DIVERSIFICATION
performed better than the local
(being the portion of the value
market over the past decade, this
we place on local shares that
From a young age we are taught
has not always been the case. Over
originate from economic activity
not to put all our eggs in one
the past 20 years, the local market
outside our country’s borders).
basket. This truism stems from
materially outperformed global
We believe multi-asset funds
the value of diversification, which
equity markets, as the outcomes
provide the easiest way to
is the key benefit of having at least
through most of the 2000s were
enjoy hassle-free international
some of your assets offshore.
very different to their more recent
exposure, as you mandate
both international and domestic
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SILVER DIGEST //SUMMER 2019
funds’ international allocation
