Our offshore portfolios give clients direct offshore exposure.

Portfolios are kept in the safe custody of our offshore custodians in the name of the client and no funds are ever deposited at Overberg. In the unlikely scenario that Overberg goes bust, the portfolio will be unaffected, and the client can appoint a new manager.

Living annuities cannot be moved abroad and can only be drawn down at a maximum of 17.5% per year, until it reaches a value of R125,000 at which point the whole amount can be withdrawn. Overberg can construct a portfolio that will mimic returns on global asset classes and to hedge the Rand.

Clients have online access to view their global portfolios 24/7. Overberg reports to clients on a quarterly basis with in-depth feedback and analysis on current and expected market conditions.

You can take a maximum of R10 million a year offshore if you have been granted a SARS tax clearance certificate to move money abroad. Without this tax clearance certificate, you can only send a maximum of R1 million out of South Africa into your foreign bank account each year. Contact one of our consultants for more information.

In the past few years, South African investors have maximised their offshore investments utilising their R1m a year discretionary travel allowance. At a total asset value, most South Africans have the majority of their assets in South Africa and it is prudent to diversify that asset base as much as possible up to a third offshore. The recommended starting offshore portfolio is GBP50,000, but smaller portfolios can be accommodated which will then grow over time.

Overberg has been running the global investment strategy since the company’s inception in 2001, consistently outperforming the benchmark across market cycles. The strategy is well proven over different time periods, showing superior absolute and risk adjusted investment returns.

The annual asset management fee is 1.5% of the value of the client’s portfolio calculated at 0.375% of the total market value of the client’s portfolio at the end of the quarter and paid every calendar quarter in arrears. The fee is competitive versus the average unit trust and contains no additional performance fee.

While the portfolios reside overseas in the safe custody of UK based stock broking firms, the research and portfolio management process occur at the offices of Overberg in South Africa. Clients have the comfort and convenience of dealing with asset managers who are based locally rather than overseas.

The portfolios comprise an optimally diversified mix of investment trust companies listed on the London Stock Exchange (LSE). There are hundreds of investment trust companies listed on the LSE, with various mandates and areas of specialisation, representing the world’s different economies and currencies. Investment trust companies are priced in sterling but depending on their specialisation the underlying exposure may be to one of the world’s other major or emerging market currencies.

The portfolios comprise an optimally diversified mix of investment trust companies listed on the London Stock Exchange (LSE). There are hundreds of investment trust companies listed on the LSE, with various mandates and areas of specialisation, representing the major asset classes, including equities, bonds and property. Overberg’s global private share portfolios are optimally diversified across these asset classes in order to maximise potential investment returns with the minimum amount of risk.

Through listed investment trust companies, OAM’s global private share portfolios can gain exposure to alternative asset classes including private equity, infrastructure, renewable energy, absolute return strategies, gold bullion, and even more esoteric asset classes such as music royalties. These alternative asset classes are relatively undiscovered, thereby providing more attractive returns. In addition, due to their low and sometimes negative correlation with equity markets, they provide an effective means of reducing portfolio risk and ensuring greater stability of returns.

The quick answer is not less than five years. The longer your investment horizon, the better – it is not the timing of the market, but time in the market that is important. Some years will be better than others – investments never grow in a straight line. You are safer inside the market than outside the market. Allow your investment to grow through the power of compounding. Never interrupt the power of compounding.

Funds can be accessed at any time. When you need funds, we can repatriate it to SA within around 10 days.

You can donate funds. The first R100,000.00 (per year) of donations are not taxed – it is called the “Annual Exclusion”. Donations of more than R100,000.00 (per year) attract Donations Tax. The current rate is 20%.

Residents are taxed on their worldwide income, subject to certain exclusions. Foreign taxes on that income are allowed as a credit against South African tax payable.

Three taxes apply to your investment:

(1) Tax on Interest Received,

(2) Tax on Dividends Received and

(3) Capital Gains Tax.

The following rates and exemptions apply to natural persons. These are the current rates.
Companies and Trusts are taxed differently.

Interest received:

• Interest received on foreign investments is fully taxable.

Dividends received:

• Dividends are taxable at a maximum effective rate of 20% via the normal tax system (not dividends tax).
  No deductions are allowed for expenditure incurred to produce foreign dividends.

Capital Gains Tax (CGT): The calculation is somewhat complicated

• The first R40,000.00 of a Capital Gain is not taxed – it is called an “Annual Exclusion”.
• The balance of the Capital Gain is taxed on a sliding scale. The maximum Tax Rate is 18%.