Invest Globally, Prosper Locally: Offshore Strategies for SA Investors

Ruvan J Grobler • July 1, 2025

In an increasingly interconnected global economy, South African investors are finding compelling reasons to look beyond local borders when building long-term wealth. Offshore investing offers access to broader, more resilient markets, particularly in developed economies with stronger currencies and more stable political environments. Given South Africa’s constrained economic growth, fiscal uncertainty, and the rand’s vulnerability as an emerging market currency, allocating a portion of your portfolio offshore can serve as both a growth engine and a hedge.


Investing offshore provides exposure to world-leading companies, industries, and fund managers that are often unavailable in the local market. It allows investors to participate in innovation-led growth in sectors like technology, healthcare, and clean energy, which are typically underrepresented on the JSE. Most importantly, it supports diversification—not just across asset classes, but across geographies, currencies, and economic cycles—reducing concentration risk tied to the South African economy.


Key Reasons to Invest Offshore:

  • Diversification: Reduce reliance on South African markets and benefit from a broader global opportunity set.
  • Currency Hedge: Protect your wealth against rand depreciation by investing in hard currencies.
  • Global Access: Gain exposure to top-tier international asset managers and world-class investments.
  • Growth Potential: Participate in faster-growing economies and industries driving global expansion.


Important Considerations for South African Tax Residents

Before investing offshore, it’s essential to evaluate how your investment aligns with your broader financial planning, particularly around access, succession, taxation, and estate planning:

  • Flexibility: Will you have access to your funds when needed? What types of investments can you hold?
  • Succession Planning: Can your investment be transferred to your heirs? Will Capital Gains Tax (CGT) apply?
  • Tax Compliance: Is the structure tax-efficient, and what must be declared on your tax return?
  • Estate Structuring: Will your investment attract foreign estate duties? Is an offshore executor required?


An Efficient Offshore Solution: The Offshore Wrapper

A tailored offshore wrapper can simplify many of these complexities, offering a cost-effective and administratively streamlined solution. Key benefits include:

  • No exposure to offshore estate duties
  • No South African executor fees on death
  • No inheritance tax in the offshore jurisdiction
  • Ability to nominate beneficiaries directly for smooth succession
  • Creditor protection for assets held within the structure
  • Consolidation of various investments (e.g., share portfolios, funds) under one structure
  • Minimum investment from $25,000


Tax Treatment

The offshore wrapper also provides significant tax efficiency:

  • Taxes are calculated and settled annually by the platform—no action required by the investor
  • CGT is capped at 12%, and income tax at 30%
  • Taxes are applied to USD returns, meaning rand depreciation is not taxed


Reach out to me at ruvan@bovest.co.za for more information.

 

Ruvan J Grobler RFP™ (PGDip Financial Planning)

Pain vs Pleasure

By Francois Le Clus • August 1, 2025
The date was 26 October 2007 and the S&P 500 index was gaining some momentum after a couple of years of sluggish growth. The index was at $1535. The housing crisis hit, and the index fell off a cliff. On the 31 st of January 2020, the world started panicking because the corona virus started spreading like wildfire. On the 10 th Dec 2021 markets started getting shaky with the rumours of a Russian-Ukraine invasion. All these events had a big impact on the S&P 500 index, some more than others. Markets took close to 6 years to recover from the housing crisis. It took close to two and a half years to recover from the Covid crisis and a year and a half to recover from the impact of the Russian-Ukraine invasion. What was the pleasure from holding on to your investment? If you invested 2007, your return is 315%. If you invested in 2020, your return is 97% If you invested in 2021, your return today is 35%. These investments assume that you were unlucky enough to have invested at the top of the index and right before the decline. Always remember this. One cannot time the market, but given time, your investment will generate returns. It is up to you how much you can stomach. Don’t wait for markets to recover before you invest, as the opportunities present themselves during times of unrest and uncertainty.

GEWOONTES VIR GELUKKIGE AFTREDE

By Riaan Botha • July 30, 2025
Inleiding Aftrede is onteenseglik ’n belangrike fase in jou lewe, en waarskynlik die belangrikste. Dit is die samevoeging van voorafgaande fases, soos opleiding en inkomsteskepping, en as persone nie gereed is vir aftrede nie, kan die lewe traumaties wees. Daar bestaan talle onsekerhede tydens aftrede soos die lengte daarvan, gesondheid en beskikbare finansies. Raad aan persone wat beplan om af te tree, is om tydig met die welvaart beplannings proses te begin – hoe gouer hoe beter. Jy benodig persoonlike welvaart doelwitte wat opgevolg moet word met die begeerte om die regte gewoontes aan te leer. Dit word soms vereis dat jy bereid moet wees om van jou gevestigde gewoontes te verander in die soeke na persoonlike geluk. Uit ons interaksie met kliënte wat op aftrede staan of reeds afgetree het, kon ons waarneem dat hierdie benadering prakties en logies is, met positiewe, tasbare gevolge. Hier volg ’n paar gedagtes oor welvaart gewoontes waarvan die leser kennis moet neem. ’n Nuwe denke oor ouderdom. ‘n Positiewe benadering oor verouderdom word gevorm as gevolg van die ontwikkeling van tegnologie en die mediese wetenskap. Statistieke wys dat die mens langer neem om te verouder en op ’n hoër ouderdom afsterf. Met veroudering word nuwe perspektiewe oor verhoudings met familie en vriende gevorm. ’n Groter dringendheid bestaan om beplanning uit te voer. Daar is ’n besef dat die tyd aanstap en dat elke oomblik geniet moet word. Die gewoonte om uit te stel en eers later belangrike momente in jou lewe te wil ervaar, verander. Daar is ’n besef dat die liggaam verouder maar dat die innerlike self steeds wil vernuwe. Laasgenoemde kan aangehelp word deur positiewe denke en gewoontes soos om terug te gee aan die plaaslike gemeenskap, om kennis te deel deur om te skryf of om onderrig te gee. Daar kan selfs oorweeg word om ’n nuwe vaardigheid aan te leer. Een van ons kliente wat ’n afgetrede predikant is, het na aftrede begin om klavierlesse te neem terwyl ander persone ’n nuwe plaaslike taal aangeleer het. Leef Gesond Ons ervaring by Bovest is dat talle persone die regte gesondheids gewoontes aanleer om hoë mediese kostes te beperk. Hier is verskillende gewoontes wat aangeleer kan word: Eet gesond en moenie oorgewig wees nie. Doen gereelde oefeninge soos op te stap. Beskerm jou gewrigte en beenstruktuur deur krag- en rek-oefeninge te doen. Hou jou brein-funksie of kognitiewe vermoë in ’n goeie toestand deur brein-oefeninge soos memorisering te doen. Volg ’n aktiewe sosiale lewe. Studies het getoon dat mense met ’n aktiewe sosiale lewe minder geheue-probleme ontwikkel. (Health Connection, Cooper, University Health Care, 9 September 2024). Samevatting Die persoonlike gewoontes van gelukkige afgetredenes is anders as die van die angstige en getraumatiseerde afgetredenes. Sommige van hierdie gewoontes word oor ’n lang tyd gevorm, terwyl ander makliker aangeleer word.