Speak to any financial advisor with half a brain and he'll tell you to go offshore.
Sure, South Africa may one day reclaim our early 2000 title of “investment darling of the emerging markets”, but it's not going to happen any time soon.
Our problems are simply too big. There's is no quick fix to Eskom, our ever-increasing sovereign debt or our 29% unemployment rate. So yes, that means going offshore is your best option.
But, if you hold a local trust, there's one small problem.
Trusts aren't allowed to move funds offshore. And that means you're pretty much stuck in the JSE. Or are you?
The answer is yes and no.
Yes, it's true that you can't move your trust-held funds completely offshore. But if you have a trust and want to invest in stocks listed on the NYSE, NASDAQ, LSE or pretty much any major exchange, there is a way.
All you need is a stockbroking account with an asset swap facility.
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Revealed: The inside outs of asset swaps
Thanks to the magic of asset swaps you can invest on offshore exchanges. AND you can do it from a South African account!
And while providers do charge a fee for this facility (usually about 0.35% per annum) that fee is negotiable if your trust is big enough.
In fact, even if you have to pay the full fee, it’s worth it if it gives you extra growth in US dollars or British pounds. The currency difference will more than cover the asset swap fee!
The last 4 days have been crazy for our trades!
DAIMLER: Daimler hit its stop loss on Monday and we made a loss of -76.58% on it.
MERCK: Merck hit its adjusted stop loss on Tuesday for a final gain of 15.80%.
US500: We opened this one on Tuesday and on Wednesday it reached its take profit for a massive gain of 323.00%!
BRENT: locked in a profit of 51.57%. It got hit yesterday and it is now a closed trade.
To find out how Trader X can help you trade the global markets for potential large profits, click here.
Just beware, there is one small pitfall
The only catch with this technique is that when you sell your investments, you must return the cash to South Africa.
But hey that’s life. No matter what you do, you have to weigh up your pros and cons. And as things stand, the pros of investing offshore far outweigh the cons of returning the funds to South Africa later.
So what are you waiting for? If you have a trust and want to use of an asset swap facility to help you get some cash offshore, Rand Swiss can and will happily assist you. Just send us an email on firstname.lastname@example.org
Rand Swiss, Wealth Manager