M&G Investments Southern Africa

Reg 28: What’s the optimal offshore allocation?

June 23, 2022 | 1h 7m 57s

Learning: Skills & Abilities

South African investors have greeted with enthusiasm the government’s recent increase in the offshore investing limits for retirement portfolios to 45%, from 30% previously. This is a very significant change, since taking up the full new allocation would increase your offshore exposure by 50%.

At M&G Investments, we welcome the additional investment scope it provides. But what would an optimal offshore allocation be? Given the importance of offshore assets and the large impact they can have on portfolio performance, we believe there are a number of factors to consider before changing your investment allocation. Any adjustments shouldn’t be made simply as a result of the offshore regulatory limit being increased.

In this thought-provoking webinar, Sandile Malinga, Multi-Asset Portfolio Manager, unpacks the various factors investors need to consider when constructing the most efficient multi-asset portfolios -- with a particular focus on those affecting the optimal offshore exposure. You may be surprised to learn to what extent different weightings of offshore assets change the risk-return characteristics of these portfolios, and how they might vary across different investment objectives. Hosting the session is Pieter Hugo, Chief Client and Distribution Officer.