Last week I interviewed Paul Hanson, a Director of Stanlib Wealth Management. We discussed the global economic climate and offshore investing. Paul pointed out that over the last ten years most US$ funds have had negative returns to South African investors. This was due to the Rand appreciation and off course the global meltdown caused by the "credit crunch".

Last year we saw a turn around in offshore markets, however there is still great uncertainty in the US and in Europe due to the Greece Debt Crisis. The next ten years we could see recovery in offshore markets but no one has a crystal ball. In the meanwhile we can say for certain that offshore markets like our own will be fragile for some time to come.

I asked Paul, Stanlib's view of where the Rand is heading he said their view was between R7.80 - 8.10 by end 2010. With the Rand trading at around R7.33 to US $ (that was last week) and if South Africans wanted to diversify their portfolios now would be a good time to do so (since last week the Rand has depreciated to R7.48 / US$).

For investors seeking better returns with a long term investment horizon Off Shore Property and Balanced Offshore Funds are a good option. The Stanlib International Property Fund (Rand Denominated) has returned over 100% in US$ and just over 30% in Rands the fund has yielded a 5% (US$) dividend. Stanlib has just launched a new offshore property fund managed by the same managers as the Stanlib Property Income Fund. This fund offers South Africans a oppurtunity to have exposure to UK property. If you are interested in investing offshore feel free to contact me...