In this post, we’ll evaluate Allan Gray offshore investment to aid potential investors in knowing what the opportunity from the South Africa-based investment management company is all about. Specific discussion points include:
- Allan Gray Offshore Investment Options
- Allan Gray Offshore Minimum Investment
- Allan Gray Offshore Platform Fees
- How to Open Allan Gray Offshore Account
- Allan Gray Offshore Login
- Allan Gray Offshore Funds List
- Pros and Cons of Investing Offshore
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Allan Gray Offshore Investment Options
- Rand-Denominated Allan Gray Offshore Unit Trusts: Allan Gray allows investors to access offshore investment. This doesn’t entail conversion of rands to foreign currency.
- Direct Foreign Currency Investments: Investors may utilize the Allan Gray Offshore Investment Platform to make direct foreign currency fund investments using their offshore allowance. The minimum investment specifications for this option are greater, but it gives access to a wider selection of foreign unit trusts.
- Allan Gray Offshore Endowment: Benefits of this product include estate planning and tax efficiency. This is especially true for individuals with marginal tax rates above 30%. It offers a cost-effective long-term investment option with dependable customer support too.
Allan Gray Offshore Minimum Investment
A lump sum foreign currency investment of 50,000 South African rand, or 3,500 US dollars, is required to use the Allan Gray Offshore Investment Platform. Amounts in euros, British pounds, Japanese yen, or Australian dollars would also be acceptable.
Meanwhile, at least 400,000 rand, or 25,000 USD, is required for the Endowment product. Equal contributions in EUR or GBP are welcome.
Allan Gray Offshore Platform Fees
A yearly management charge and possible performance fees are among the charges associated with Allan Gray’s offshore investments.
Specific costs are determined by the underlying funds and the selected option.
The annual administration fee assessed by the firm is determined by the aggregate market price of the investments:
- 0.5% on the first 200k USD
- 0.2% on the next 800k USD
- 0.1% on any amount in excess of 1 million USD
The fee is 0.2% for investments made in the Allan Gray Money Market Fund.
There is a fixed 1% yearly administration fee if the total value of the investments is under 50,000 rand or equivalent.
The investor and their financial advisor directly negotiate the adviser’s costs. The maximum amount for initial fees is 3%, VAT excluded. The ceiling for annual fees is 1% of the investment, VAT also excluded.
How to Open Allan Gray Offshore Account
You can work through your financial advisor or get in touch with the business directly for account opening.
The applicable application forms must be filled out, and the required supporting paperwork must be submitted.
Allan Gray Offshore Login
- Go to the Allan Gray website.
- Enter your login credentials. Use the forgotten password area to reset your username and password if you’ve lost them. An SMS guiding you through the reset procedure will be sent to you.
- You may track and supervise your investments once you’ve logged in. You can also review your statements, transaction records, and investment performance.
- Using the platform, you may also directly submit instructions for extra contributions, fund transfers, and withdrawals.
Allan Gray Offshore Funds List
The company’s offshore funds are provided through its Offshore Investment Platform and Offshore Endowment products.
Some key funds available include:
- Allan Gray-Orbis Global Equity Fund
- Allan Gray Africa ex-SA Equity Fund
- Allan Gray Africa Bond Fund
- Allan Gray Optimal Fund
- Allan Gray Australia Equity Fund
- Orbis Global Balanced Fund
- Orbis Global Equity Fund
- Orbis SICAV – Global Optimal Fund
- Orbis SICAV – Asia Ex-Japan Equity Fund
Please see the official Allan Gray Offshore Investment Platform Fund List here for an exhaustive list of all accessible offshore funds, including their fees and performance indicators.
Pros and Cons of Investing Offshore
Benefits of Investing Offshore with Allan Gray
- By distributing investments across several markets and asset classes, offshore investments enable portfolio diversification, which lowers risk.
- By accessing foreign businesses and sectors that are unavailable locally, investors may be able to increase their returns.
- The Allan Gray product’s offshore investment cap was raised to 45% of total investment allocations as of March 2022, providing for more freedom in how assets are allocated.
- So as to ensure that investments adhere to local exchange control requirements, the firm operates within the regulatory framework established by the SARB.
Risks of Offshore Investing with Allan Gray
- Minimum investment requirements can be quite high.
- When Allan Gray hits its predetermined restrictions for offshore exposure, some funds might not accept new assets. This may limit access to specific investment opportunities, which may have an adverse influence on the effectiveness of diversification.
- Currency risk is a concern for investors who invest in offshore funds, especially if the rand weakens in relation to the currencies used to purchase the products. When converting back to rand, this may have an impact on the overall returns on investment.
- The restrictions placed by the South African Reserve Bank on the amount that can be invested overseas may deter investors who would like to allocate a bigger percentage of their basket to offshore holdings.
- Even if offshore investments have certain tax advantages, there can be difficulties due to the complexity of relevant laws.
Because there are so many global unit trusts accessible and because investing across jurisdictions can be difficult, navigating the offshore investment landscape can be overwhelming.
Strict international anti-money laundering laws are one aspect of this intricacy that may be made worse by South Africa’s grey listing practices.
Investors may have to manage complicated local and international tax responsibilities, which call for expert guidance.
Working with someone who has an expertise in offshore financial services and investments would be necessary for such an opportunity.
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Adam is an internationally recognised author on financial matters, with over 760.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.
