Tag: CurrencyRisk

This year has been marked by significant geopolitical instability. As the conflict in the Middle East continues, South African importers face pressure from three sides. Fuel costs are rising. Supply chains are disrupted. In addition, the Rand, already one of the world’s most volatile emerging market currencies, now carries a war premium on every international transaction.

Many people tend to default to investing in the JSE because they are familiar with these listed companies. However, this limits the diversification benefits that come from investing in offshore shares. Diversification across economies, political jurisdictions and asset classes is achieved when a portion of total assets is invested offshore.