Do you have to invest offshore to get a proper return?

In an article published on the Moneyweb website, Rosebank Wealth Group’s Trevor Lee wrote that a commonly known fact is that Consumer Price Inflation (CPI) aims to track the change in the price of a basket of goods (deemed to be the average goods and services consumed by South Africans). We also know that ‘individual CPI’ can be a lot higher than headline CPI if your personal basket of goods differs from the average basket.

Two big costs for middle class South African families are the cost of medical scheme membership and the cost of education. The prices of these services/products have increased at or near double-digit inflation for years. This is a worldwide phenomenon and attributable to the fact that these sectors are both labour intensive and employ people with scarce skills.

However, most South Africans have invested in the Multi-Asset class of unit trusts, which have underperformed the rising cost of health premiums and the rising cost of school fees, while offshore markets have outperformed over similar time periods.

So what is to be done?

At Rosebank Wealth Group, we believe that diversification and asset allocation are the only two free lunches in the investment world, domestically and globally. To read the full article click here.

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