Slide 1
Serving our clients for more than 25 years
Slide 2
Trusted to deliver peace of mind solutions
previous arrow
next arrow

Is it time to take more retirement capital offshore?

by | Investments, Offshore, Retirement Annuities

You may have heard some chatter, but it’s official: offshore investment limits for retirement fund investors have been set at 45%, effective immediately.

The South African Reserve Bank (SARB) has confirmed the increase and the investment platforms and asset managers are already gearing themselves up for these changes. This increase will be warmly welcomed by many investors.

Out with the old

Previously, members of a retirement product (Retirement Annuity, Pension, Provident, Preservation, and Umbrella Funds) could only invest 30% outside of Africa plus an additional 10% in Africa ex-SA.

In with the new

All investors in retirement products can now invest up to 45% of their portfolio anywhere globally. This also means that assets managers whose mandates prescribe to Regulation 28 (typically your Balanced Funds) can allocate more resources offshore.

Is it time to increase your offshore exposure?

Speak to us if you feel strongly about re-assessing your underlying retirement fund portfolios, bearing in mind that the asset managers themselves will be looking to make fundamental changes within their portfolios, which could ‘naturally’ impact your offshore exposure.

A reminder, as always, if there have been any material changes to your personal or financial circumstances in the last year or so, it is incumbent on you to please contact us to review your financial plan together.