By Pristine Wealth | Independent Advice. Tailored Wealth.
Offshore investing simply means allocating a portion of your portfolio to international markets – such as the US, UK, Europe, or Asia – instead of only investing in South African shares, bonds, or property.
Here’s why it makes sense:
- Diversification: South Africa represents less than 1% of the global economy. Offshore investing allows you to access global giants like Tesla, Nestlé, and Microsoft – spreading your risk across different sectors, economies, and currencies.
- Rand Hedge: The rand is known for its volatility. Holding assets in stronger, more stable currencies (like USD or EUR) helps protect your wealth from local currency depreciation.
- Access to Growth: Emerging technologies, healthcare innovation, AI, and green energy are booming internationally. These global trends may not be fully represented on the JSE – but they are available offshore.
- Wider Investment Choices: Global markets offer a far greater selection of funds, sectors, and companies, allowing you to tailor your portfolio more precisely to your goals.
How Much Should You Invest Offshore?
There’s no one-size-fits-all answer, but a good starting point for many South Africans is 30% to 45% of their overall portfolio. Your personal mix will depend on factors like your time horizon, lifestyle goals, and risk appetite – which we review closely with each Pristine Wealth client.
A Quick Look: Offshore vs Local Returns
Here’s a snapshot of how global and local markets have compared over the last 5 years (as of June 2025):
5-Year Rolling Returns: Offshore vs Local (Annualised) (Returns in ZAR, Net of Fees)
| Investment | 5-Year Return |
|---|---|
| MSCI World Index (Offshore Equity) | 14.8% p.a. |
| S&P 500 (USD, Offshore) | 17.2% p.a. |
| FTSE/JSE All Share (Local Equity) | 8.5% p.a. |
| SA Money Market | 6.7% p.a. |
Source: Morningstar, Pristine Wealth analysis
Making It Happen
At Pristine Wealth, we help our clients invest offshore through:
- Feeder Funds (ZAR-based, no forex exchange hassles)
- Direct Offshore Investments (foreign allowance or asset swap)
- Tax-efficient wrappers like endowments and life wrappers
Feeder Funds vs Direct Offshore Investing: What’s the Difference?
When it comes to offshore investing, South Africans generally have two main options:
1. Feeder Funds (ZAR-Based Offshore Funds)
These are local unit trusts that give you access to global markets, but you invest in rands. The fund manager handles all the offshore exposure behind the scenes.
Pros:
- No need to convert currency or use foreign investment allowances
- Simple admin – treated like any local investment
- Access to top international fund managers
- No SARS approvals or offshore bank accounts needed
Cons:
- You’re still exposed to rand volatility, which can impact timing
- Slightly higher costs in some cases (layered structure)
- Less flexibility than direct offshore platforms
2. Direct Offshore Investing
Here, you convert your rands to foreign currency (usually USD, GBP or EUR) and invest through an offshore platform or wrapper. You can choose from thousands of global funds, ETFs, or shares.
Pros:
- Full currency diversification (your money leaves the rand environment)
- Wider investment menu – direct access to global fund houses, ETFs, stocks
- Potential estate planning and tax advantages through offshore wrappers
Cons:
- You need to use your foreign investment allowance (up to R10 million per year per individual, with SARS tax clearance)
- More paperwork and admin upfront
- Offshore platforms may require higher minimum investments
Which Is Right for You?
At Pristine Wealth, we help our clients decide based on:
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- Investment goals
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- Amount available to invest
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- Currency preferences
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- Tax planning needs
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- Time horizon
For some clients, a blend of both feeder funds and direct offshore investments offers the ideal balance of simplicity, access, and diversification.
Final Thought
Offshore investing isn’t about abandoning South Africa – it’s about giving your wealth room to grow globally, while still staying anchored in a strategy that reflects your goals, values, and risk comfort.
At Pristine Wealth, we walk this journey with you – helping you invest with clarity, confidence, and purpose.
Whether you’re just getting started or ready to allocate more offshore, we provide independent advice tailored to your needs.
Pristine Wealth
Independent Advice. Tailored Wealth.
