As the neighboring chart indicates, the Rand continues to depreciate at an alarming rate, averaging 10% annually against the US dollar since 1995.
At the same time the size of the Johannesburg Stock Exchange relative to international markets continues to shrink. The JSE now comprises less than 1% of the world's total stock market capitalization and is increasingly tainted by any emerging market crises.
With few local companies being world leaders in their fields, investors who wish to invest in the world's most dynamic and profitable companies, have no alternative but to invest offshore.
Protecting your family's wealth
Investors who wish to protect their family's wealth over the long-term have no alternative, but to diversify offshore.
An offshore investment grows both on its own merits, and benefits from any fall in the value of the Rand against the currency of the offshore investment. Under current legislation, up to R4 million per person may be invested overseas.
Your risk and return requirements are met by a complete range of GinsGlobal offshore index funds. (see loose leaf inserts), each with a different focus, catering to specific needs.
Unlike other South African-based international funds, holdings in the GinsGlobal offshore funds can be paid out either in SA or directly offshore in a foreign currency. All dividends and interest are reinvested offshore. All the funds are domiciled offshore, maximizing the tax-friendly nature of these investments.