After a decade of subdued performance on the JSE, local investors are seeking growth. And owing to the uncertainty and factors affecting our local markets over the past few years, offshore investing is again a popular topic. Diversification always remains the number one reason to include an allocation to offshore investments as part of your investment portfolio. It not only spreads your risk geographically, but also gives you access to industries and investment opportunities that are perhaps not available locally.
Offshore investing is for everyone, and there are different ways of investing globally ̶ some easier and less admin-intensive than others. Investing in a rand-based fund is one of the simplest ways to obtain offshore exposure.
The Glacier Global Stock Feeder Fund
The Glacier Global Stock Feeder Fund gives investors access to a global asset manager, without having to externalise their capital. This is due to a partnership between
Glacier and global asset manager Dodge & Cox.
Chicago-based Dodge & Cox was established almost 100 years ago and is led by very experienced investment professionals with an average tenure of more than 20 years.
The Fund is rand-denominated and invests directly in the Dodge & Cox Global Stock Fund (USD class) (the underlying fund), using Glacier’s offshore capacity, which means investors
will not have to externalise capital. The Fund also provides a hedge against a weakening rand.
The Glacier Global Stock Feeder Fund was launched at the beginning of 2017 and had R420m assets under management as at 15 March 2021.
Is this the right fund for you?
This fund is suited to investors who are looking for exposure to global stock markets but who would like to invest in rands. As this fund is focused on providing long-term growth of your capital, it is recommended to stay invested in it for at least five years or more.
Investors can access the Fund via Glacier’s local investment platform. The Fund is available for all solutions, including the Tax-Free Investment Plan.
ConsConsiderations when including an offshore fund in your portfolio:
* A feeder fund is a portfolio that invests in a single portfolio of collective investment schemes, which levies its own charges and which could result in a higher fee structure for the feeder fund.
Glacier Management Company (RF) (Pty) Ltd is a registered and approved Manager in Collective Investment Schemes.