Warwick Gauteng Regional Manager, Deon Myburgh, writes on why we believe you should invest internationally. Why you should invest internationally Warwick Wealth firmly believes that it is imperative that a well-diversified investment portfolio must have healthy offshore exposure. Indeed, all our house view models have a minimum allocation of 38% to offshore assets. Exposure to offshore assets can be via rand-denominated feeder funds, or through direct exposure to international markets and exchanges. There are a number of reasons for our view, and a few of the more important ones are highlighted below. Diversification Our local JSE makes up less than 1% of global investment opportunities. Our market is highly efficient, but it is very heavily weighted towards the mining and financial sectors. Several very important sectors are absent on the JSE, for example, the pharmaceutical sector, the alternative energy sector, the artificial intelligence sector, etc. Quality The business environment in South Africa is over-regulated and relatively uncompetitive due to restrictive policies and onerous requirements placed on the private sector by the government. This means that companies listed in South Africa must contend with a difficult environment when compared to our developed market peers. Companies listed in the US operate in […]
The post Investing Internationally appeared first on Ian Kilbride.
