It is well known that for more than a decade, Brenthurst Wealth has been advocating investing in the offshore market. Even though this strategy has received a lot of frowns in the industry, it has added value to long-term investments.
With this long-standing view, investors often ask the question, “How can I invest offshore?” Firstly, you don’t need millions to be able to access the offshore market, but you need to be aware of what your needs are and what your investment term is before you decide on your offshore allocation within your portfolio.
How much do you invest offshore?
When choosing offshore investment options, it is important to consider your risk tolerance, investment goals, and time horizon. We advise a minimum term of seven years. Once your financial plan is set out, anything that is not required to be liquid for the first seven years can be allocated to higher-risk assets like offshore equities.
Investment options available to South African investors:
Many South Africans think that the only way they can invest in the offshore market is by physically taking their money out through their Single Discretionary Allowance (R1 million per annum) or by applying for Approval for International Transfer (R10 million per annum). This is not the case.
Rand-denominated offshore investment
For those clients that do not have a lot of money, offshore allocation can be included by investing in feeder funds. These are rand-denominated unit trust funds or exchange-traded funds (ETFs). You indirectly invest in the offshore funds but do not physically invest in a foreign currency. Your investment will, however, still benefit from offshore market growth and the weakening rand.
Direct offshore investment
Direct offshore investment involves physically moving your money out of the country and into an offshore bank account or investment fund. This can be a complex and expensive process, and it is important to comply with all applicable laws and regulations. Something that Brenthurst assists our clients with in-house.
Below is a comparison of the same fund – one is the rand-denominated feeder fund, and the other is a direct US dollar fund. Returns are shown in rands:
Source: Ninety One Asset Management
Source: Ninety One Asset Management
Risks of offshore investing
Offshore investing offers a number of potential benefits, but it is important to be aware of the risks involved. These risks include:
- Currency risk: The value of your offshore investments can be affected by changes in currency exchange rates. As South African investors, this is one of the main reasons we advise offshore diversification. Our currency is weakening rapidly against major international currencies. Our buying power is getting less and less. Today you need R204 to purchase the same things you bought for R100 a couple of years ago.
- Political risk: Offshore investments can be affected by political instability in the country where they are located. We have seen what the Russian-Ukrainian war has done to various investment sectors.
- Regulatory risk: Offshore investments can be subject to different regulations than investments in your home country. Portugal, for instance, does not allow its tax residents to invest in funds domiciled in Guernsey, Isle of Man or Bermuda.
Conclusion
Offshore investing can be a great way to diversify your portfolio and protect your assets. However, it is important to understand the different options available to you and the risks involved before investing. You should also consult with a financial advisor before making any investment decisions.
Megan joined the Brenthurst Wealth team in March 2026 as an Administrative and Fiduciary Services Assistant at our Val de Vie Office in the Western Cape. Prior to joining Brenthurst, Megan gained three years of experience in the retail sector, where she developed management and client service skills.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Esmarelda Isaacs-Andreas joined the Brenthurst Wealth Stellenbosch office in October 2025, taking on the dual role of Receptionist and Fiduciary Administrator.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Ashley joined Brenthurst Wealth in January 2025 as Office Administrative Assistant and Receptionist for the Stellenbosch Office.
René Heystek joined Brenthurst Wealth in November 2023, as receptionist and administrative assistant in the newly established George/Garden Route office.
Michelle Heystek has built a career in the financial services over the last two decades, after obtaining her B.Com degree in Financial Management in 2005. Once she joined Brenthurst in 2006, she continued her academic journey, obtaining her Certificate in Wealth Management from INSETA in 2007, followed by a Postgraduate Diploma in Financial Planning from the University of the Free State. In 2008, she earned the Certified Financial Planner (CFP®) designation.
Anelle joined Brenthurst Wealth as a Receptionist and Administrative Assistant to Brian Butchart in the Cape Town office in December 2023. She has a wealth of knowledge from working as a liaison between Financial Advisers and clients at TMA and Absa Investment Management Services (Aims) since 1998. She obtained her B. com degree from the University of Port Elizabeth in 1997.
ADMITTED ATTORNEY | FINANCIAL PLANNER & HEAD OF BRENTHURST FOURWAYS
Sanet was appointed in April 2020, joining our Cape Town team as an Executive Administration Assistant to Renee Eagar. She has been in the financial services industry since 1990. Her previous experience includes positions at Sanlam, BJM and ABSA. She spent her last 12 years working at Alexander Forbes Private Client Wealth as a Senior Wealth Management Assistant. She has received numerous accolades over the years which include but not limited to, Alexander Forbes Client Service Excellence – Silver award in 2014,2015 and 2017. Sanet has also obtained her Certificate in Wealth Management (NQF 5) in 2012 and achieved “Best Student of the Year” from Moonstone.
Maria Smit is a Certified Financial Planner® with over 10 years of experience in the financial planning industry.
