South Africans open up to Offshore Markets

High Net Worth Individuals (HNWIs) and financial advisers in South Africa have a newer method of accessing the global markets. They will take advantage of an online platform crafted through open architecture. The latter will offer access to a bouquet of investment structures, funds, and shares. The strategy has been verbalized by David Noon of Capital International Group, a South African finance company. Noon, a sales and business development manager, has reported that with the dropping of exchange controls, the South African HNWIs would be able to figure out whether something is amiss between the offshore and onshore balance accounts.

Even if there is an attractiveness in the offshore markets, one factor which stops the money being pumped in is the beguiling level of bureaucracy. The latter discouraged people from taking a more informed decision concerning the position of their assets.

SA's particular needs

Noon is an old hand in the finance industry. He witnessed in person the disastrous global fallout of the 2008 financial crisis. It caused a terrifying episode on the local investment portfolios. It is thus a given that he would be sensitive to the needs of South Africans who are trying to manage money. In his interview with the media, the seasoned finance specialist said that he went through the pain and the happiness of many financial advisers. He said that he fully comprehends intricacies of the South Africans who try to manage money in global context.

Noon advises that South African investors must have two strengths in this context. It is vital to have a physical presence on-ground in the country. Cape Town is a good place to open a financial base. He pointed out that South Africa always has had an excellent administration background. It means financial advisers could spend more of their time when offering their clients' valuable advice.

Currency strategies

Since the rand is extremely volatile and South Africa has suffered downgrades in the recent years, the HNWIs and the financial advisers are spending considerable amounts of time regarding the currency impact on their respective portfolios. This strategy has been due to the South Africans being always currency conscious.  He knows that a number of investors and advisers are now consciously adopting the three-currency strategy. This strategy involves trying to convert the earned money into SA Rand currency and then moving it to the US dollar and other hard currencies. This would then be further diversified into third currencies like pound sterling or the euro. This strategy enables investors to transact in global markets.

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