Unit trusts are an excellent means to provide South Africans with the option to invest offshore. A well structured investment portfolio should have offshore exposure as this provides earnings in world currencies and provides a hedge against Rand depreciation.
The SARB (Reserve Bank) is very concerned about the current strength of the Rand and it could use it's power by hiking the repo rate in an attempt to weaken our currency. The Rand has appreciated around 30% against the US $ this year and is one of the best performing currencies against the green back worldwide.
I have a feeling that the Reserve Bank may start to hike the Repo rate in 2010. This, with the loom of the nations power crisis is certain to drive inflation upwards in the year to come.
This is an excellent time to start moving money offshore. You can invest offshore directly by making use of your offshore allowance, which requires SARS Tax Clearance Certificate and Reserve Bank Clearance.
A simpler method to get offshore exposure is to invest in one of the many Rand denominated unit trusts. This requires no approval nor does it affect one's offshore allowance. An ideal investment for small and large investors alike.
There are a wide range of offshore unit trusts available across all the major currencies.
Speak to me to now to make sure you take advantage of the current strong Rand before it starts depreciating.
