Assignment (MComm)--University of Stellenbosch, 2003. / ENGLISH ABSTRACT: The offshore investment industry has shown tremendous growth (R92,7 billion
invested in offshore unit trusts and mutual funds) since the Minister of Finance
took the bold step (1 July 1997) availing South African (SA) residents the
opportunity to invest offshore. Currently, SA residents, subject to certain criteria,
are allowed to invest R750 000 offshore. The primary objective of this assignment
is to provide a general overview of offshore investments from a SA resident's
perspective. Foreign investment policies as they relate to local residents are
reviewed. Investment maxims, truisms and theory are introduced to provide a
theoretical framework to accommodate future chapters. The question regarding
why South Africans should invest offshore is answered by firstly identifying specific
risks that are unique to this country, its people and businesses and, secondly, by
looking at market risk. Conclusive empirical evidence states that offshore
diversification reduces portfolio risks and enhances returns. Offshore investments,
their related costs/fees, investment strategies as well as regulations that offshore
investors must adhere to, are also discussed. The most important obstacles to
investing offshore, namely the home bias phenomenon and currency or exchange
rate risk, are placed in perspective. Important tax implications for investing
offshore are also briefly mentioned. In the final chapter conclusions and
recommendations are made. / AFRIKAANSE OPSOMMING: Die buitelandse beleggingsindustrie het merkwaardig gegroei (R92,7 biljoen is
tans in buitelandse effektetrusts en onderlinge fondse belê) sedert die Minister van
Finansies die dapper stap geneem het (1 Julie 1997) om Suid-Afrikaanse (SA)
burgers die geleentheid te bied om in die buiteland te kan belê. Huidiglik kan SA
burgers, onderworpe aan sekere kriteria, tot R750 000 in die buiteland belê. Die
primêre doelwit van hierdie werkstuk is om 'n oorsig vanuit die SA burger se
perspektief voor te lê. Buitelandse beleggingsbeleide, asook hoe hulle SA burgers
beïnvloed is in oënskou geneem. Beleggingsgrondstellings, -waarhede en -
teorieë, is bespreek om 'n teoretiese agtergrond te verskaf vir latere hoofstukke.
Die vraag waarom Suid-Afrikaners in die buiteland moet belê, word beantwoord
deur eerstens, spesifieke risiko's wat uniek is aan ons land, sy mense en
besighede, te identifiseer, en tweedens, om na markrisiko's te kyk. Konklusiewe
empiriese navorsing bewys dat buitelandse beleggings die risiko's van portefeuljes
verlaag en opbrengste verhoog. Buitelandse beleggings, hul verwante koste/fooie,
beleggingstrategieë, asook regulasies waaraan buitelandse beleggings moet
voldoen, is bespreek. Die belangrikste struikelblokke vir belegging in die buiteland,
bekend as die sogenaamde "home bias"-verskynsel en val uta- of
wisselkoersrisiko's, is in perspektief gestel. Belangrike belastingsimplikasies vir
buitelandse beleggings word ook kortliks genoem. In die finale hoofstuk word
gevolgtrekkings en aanbevelings gemaak.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/53534 |
| Date | 03 1900 |
| Creators | Grant, David Ronald |
| Contributors | De Villiers, J. U., Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Business Management. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | Unknown |
| Type | Thesis |
| Format | 182 p. |
| Rights | Stellenbosch University |
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