Globalisation of the international economy have been made easier by the rise of digital communications and transaction platforms that enable global trade and investment. As a private investor, you have opportunities for growing your wealth internationally, where factors like diversification, exposure to emerging economies, and access to new markets all play a role. What do you need to consider if you choose the international wealth management route?

Expanding your portfolio with global investments

Diversification is a fundamental principle of investment. By expanding your portfolio across different asset classes and geographic regions, you can mitigate risks and potentially enhance returns. International investments can add value here. Bespoke investment advice will allow you to consider various factors such as asset allocation, sector exposure, and regional diversification, as well as optimising your investment mix. For example, while stocks in emerging markets might grow rapidly, investments in developed markets can provide stability. Similarly, a mix of equities, bonds, and real estate can provide a balanced approach to your portfolio.

Multi-currency banking

Your international investment strategy should consider multi-currency banking and investment in foreign currency-denominated funds. A good investment manager and platform can help you navigate risks from exchange rate fluctuations. Currency-hedged funds are a good option, as is the ability to bank and transact in multiple currencies.  

Compliance

When investing internationally, you must comply with regulations and tax requirements in different jurisdictions. Compliance with these laws as an investor often involves research into legal and other relevant regulatory frameworks governing your investments, as well as the necessary paperwork. For example, some countries have tax treaties to avoid double taxation on investment gains, while others have different rules for repatriation of profits.

International reach – local knowledge

If you’re investing in international markets, it’s best to have a helicopter view of the market dynamics where you’re investing, or where your portfolio has exposure – including factors like cultural nuances and regulatory frameworks – the type of local market knowledge which an experienced private wealth banker should have. Not only does this improve your growth prospects, but it also enables you to identify other potential investment opportunities across various asset classes, including equities, bonds, real estate, private equity, and alternative investments. A Nedbank Private Wealth (NPW) banker or manager can open a Nedbank Focus Account to leverage these international opportunities and offer you a bespoke, dedicated service.

Integrating international investments into your wealth plan

NPW wealth managers and our specialist international team can help you adapt to changing circumstances and maximise investment opportunities across the globe. Designed as a financial ecosystem for your international wealth management, the Focus Account’s key features, in line with the essential elements of your international banking strategy, include the following: 

• Offering base rate lending on foreign-denominated loans, allowing you to optimise international borrowing costs with competitive rates.
• Providing access to the UK property market to finance residential or investment properties with expert advisory support.
• Integrating international banking, lending, and investments so that you can manage multiple currencies and assets from a single platform, all accessible through market-leading and award-winning digital banking solutions.
• Offering portfolio-backed lending solutions so you can use your investments as collateral for additional financing options.
• Providing portfolio structuring and tax-efficiency expertise so that you have access to expert guidance on trusts, companies, and tax wrappers to structure your wealth optimally.
• Delivering the entire suite of services on an integrated and highly sophisticated digital platform so you can manage your international accounts online from anywhere, at any time. 
• Offering bespoke, one-on-one service from our dedicated international investment specialist team in South Africa.
• Receiving an offshore Visa card.
• Offering a user-friendly, dedicated Nedbank Private Wealth app.

Investing internationally requires specialised knowledge and a comprehensive understanding of global markets. Using a platform like the Nedbank Focus Account provides access to these services – and the knowledge that your portfolio is being managed by professionals who will build a personal relationship with you, take care of your investments, and grow your wealth.