Allan Gray has substantially lowered their minimum direct offshore investment amount from US$10,000 to US$1,500 for a new investment and US$400  for additional investments.

The Allan Gray direct offshore platform for those looking to invest below US$25 000 is transparent and cost effective in structure and allows for exposure to a range of specialist equity, asset allocation and fixed interest funds.

Often described as “the only free lunch” amongst investors, diversification plays an imperative role in one’s financial plan.  For a South African who earns rands, owns property in SA and holds investments in rands, Allan Gray’s new minimums open up the door to many to invest directly offshore and further diversify their portfolios.

With the current rand to dollar exchange rate of 12.416351 (as at 24/05/2018) and given the minimum of US$1,500, one could invest directly offshore through Allan Gray from R18 624.

At Southwood Financial Planning two of the funds that we utilise in building a client’s offshore portfolio (risk profile dependent) is the Orbis Global Equity and Orbis Balanced Funds (see long term returns below).  These funds have delivered top quartile performance of 14.2% and 8.6% respectively over a 5 year term (annualised 31 March 2018).