Short answer: You can investment as much as you want offshore without hitting your annual prudential limits. This applies when you are investing in Exchange Traded Funds (“ETFs”) issued by approved Collective Investment Schemes, making offshore markets available to local investors in a safe and regulated environment.
Our journey: Cloud Atlas Investing has listed the first ever Pan Africa ex South Africa Exchange Traded Fund (“ETF”), AMIB50, on the JSE. Since Cloud Atlas Investing is a Collective Investment Scheme, it allows investors to easily gain African exposure in a safe and well regulated environment which can be suited to any investment strategy. The AMIB50 and AMIRE are ZAR denominated funds and offer investors a Rand hedge. Previously investors had limited access to Rand hedges assets, which needed to be Inward Listed securities approved by the Reserve Bank in order to reference offshore assets. Cloud Atlas Investing, along with the ETF industry secured an Inward Listing dispensation for the AMIB50, AMIRE and all other foreign ETFs, which makes the products even more innovative from a portfolio allocation point of view. Furthermore for institutional investors any investment into the AMIB50 and AMIRE is seen as an Africa allocation according to the Regulation 28 of 2011.