Offshore investments achieve global diversity to clients’ portfolios. Concentration of wealth in any geographic area can have downside consequences in the event of unforeseen circumstances. Furthermore, awareness of offshore investment vehicles; whether commodities, equity, real estate, debt or other more exotic assets allows investors to take advantage of wealth creation outside of what is available locally.
The worlds’ economy will grow at 3.9% in 2018 according to the International Monetary Fund (IMF). There are, however, many variations in economic prospects looking at individual countries. The IMF estimates India’s economy, for example, will expand at 7.3% in 2018, while Japan shows just 1.0%.
The point here being, there are many opportunities for equity and debt investments when you view the global markets comprehensively. At Alliance Capital Management, we are constantly analysing and reviewing these opportunities on behalf of our clients.
Unit trusts and mutual funds are the most common method for clients to get involved in the global marketplace. These integrated investment vehicles pool investors’ monies and invest them in bonds and stocks in off-shore markets. A fund manager takes care of the investment judgements, custodians hold title to the securities and trustees ensure that the funds are invested in accordance with the regulations and investment guidelines. These funds are usually “open-ended” which denotes that the volume of money the fund manager has to invest increases and decreases as investors purchase additional units in the fund or sell units in the fund respectively.
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