As part of our ongoing effort to make our Offshore Investment Platform more accessible to clients, we are pleased to inform you that investors will have the option of using South African rands for lump sum investments into new and existing offshore accounts, effective 12 October 2018. We have negotiated preferential rates with an authorised dealer, who will convert clients’ rands into foreign currency. Minimum investment amounts are shown in the table below.
Table 1: Offshore investment minimums
|Options||US$ (or foreign currency equivalent)||Rand (effective 12 October 2018)|
|Lump sum investment||US$ 1 500||R 20 000|
|Lump sum per unit trust*||US$ 400||R 5 000|
|Additional contribution per unit trust*||US$ 400||R 5 000|
*The minimum investment amounts for the Orbis SICAV Japan Equity (Yen) Fund are US$1 000 and R20 000 respectively.
Considerations when using rands to invest via our Offshore Investment Platform
- Clients will need to make use of their Single Discretionary Allowance (SDA) of R1 million, granted by the South African Reserve Bank per calendar year to South African residents 18 years or older
- Clients may invest a maximum of R800 000 of their SDA per calendar year to make provision for any other foreign spend
- We will facilitate currency conversions through an authorised dealer
- Conversions will take place daily at a predetermined time and clients will not be notified of the exchange rate before the investment is finalised
- We will not charge an additional administration fee for the conversion, but the exchange rate will include the authorised dealer’s spread
How to invest offshore using rands via our Offshore Investment Platform
- For new investments and additional contributions, please complete the new rand forms available on our website from 12 October 2018. Additional contribution instructions for existing offshore accounts may also be completed via Allan Gray Online.
- Clients will be required to complete the SDA declaration included in the new forms.
- All forms must be returned to firstname.lastname@example.org.
The Offshore Terms and Conditions will be updated to reflect these changes on 12 October 2018.
Contact Ginsburg Financial Services for more information.