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Factors Influencing Offshore Capacity for Retail Clients

When investing via the INN8 platform, there are no restrictions on the purchase of rand-denominated foreign assets, other than those imposed by regulation.
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While there are a number of ways to invest offshore, financial institutions (such as unit trust managers and life insurers) registered as institutional investors with the Financial Surveillance Department of the South African Reserve Bank, may allow their retail clients to access offshore exposure via their institutional foreign exposure of 40% of retail assets:

  • The level of retail assets for the institution as a whole given that an institution’s offshore capacity is set as a percentage of its retail assets.
  • Relative growth of underlying local and foreign assets.
  • Exchange rate volatility
  • Level of new business flows into products and the extent to which these business flows select foreign assets

While this may affect some institutions, STANLIB and INN8’s products are all underwritten by the Liberty Group which has significant foreign exposure available for retail clients. There are currently no restrictions on the purchase of rand-denominated foreign assets within the following products:

  • Living Annuity
  • Endowment
  • Sinking Fund

Should you have any questions, please don’t hesitate to get in touch with our team.

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