The first step, before you start investing internationally, is to understand the broader macroeconomic environment. Factors such as geopolitical tensions, global economic resilience and sector-specific trends play crucial roles in shaping investment opportunities and risks. As an investor, it’s key that you stay informed and adaptable, so keep a keen eye on global economic indicators and policy shifts.

Nedbank investment advisers are deeply committed to ensuring that we maintain a nuanced understanding of both global and local market dynamics, so that we can guide you through the complexities of the investment environment with our long-term, well-considered investment philosophy.

In this article, we’ll look at the latest macro themes we are watching, both globally and here in South Africa. 

Global themes

The global economic scene is characterised by its resilience and gradual recovery post-pandemic, with significant attention on supply chain restoration and inflation moderation. However, the landscape remains complex, marked by varied economic growth trends, geopolitical tensions, and the anticipation of pivotal electoral activities worldwide. These elements underscore the necessity for investors to remain agile, well-informed and strategic in their asset allocation decisions.

Monetary policy and interest rate cycles, sectoral performances, inflation trends, currency movements and the dynamics of emerging markets, including China's economic challenges, are significant themes influencing global investment strategies. This is why we continue to make tactical well-considered adjustments to our strategic asset allocation, emphasising risk management and diversification to navigate the uncertainties of the market effectively.

Current themes in South Africa

In South Africa the economy has shown unexpected resilience despite global economic pressures and local challenges, including an ongoing electricity crisis and structural issues. The South African Reserve Bank’s management of interest rates in response to inflationary pressures, sectoral performance mirroring global trends, and the volatility within the resource sector are critical local themes.

Looking ahead, energy sector improvements, fiscal and monetary policy adjustments and the management of inflation are developments to watch out for in 2024. For investors, maintaining a balanced approach to asset allocation, with a focus on equities, bonds, preference shares and the property sector, will be crucial in seizing growth opportunities while managing risks.

Personalising your investment strategy

When you invest internationally, factors like exchange control regulations, currency fluctuations and tax implications become increasingly relevant. For example, as a South African investor you can use mechanisms like the single discretionary allowance and foreign direct investment allowance to diversify your portfolio internationally. Tailoring your strategy to these personal and regional nuances ensures a balanced approach to risk and reward and personal, globally integrated advice.

The power of diversification

Diversification lies at the heart of a robust investment strategy. By spreading investments across various geographies and sectors, you reduce reliance on any single market or asset class, thereby mitigating risk. This strategy not only guards against volatility but also positions your portfolio to capture growth from multiple sources.

Successful strategies for offshore investing

Investing offshore requires a strategic approach, focusing on tax efficiency and navigating exchange control regulations. Your goal is to make informed decisions that balance your portfolio and align with your long-term financial objectives. This involves choosing the right mix of assets to take advantage of global economic trends while managing inherent risks.

Choosing the right partner

Your journey through international markets will be significantly influenced by your choice of investment partner. A partner that offers a broad spectrum of investment opportunities and understands your unique financial goals can make all the difference. With the right support, you can navigate global investing complexities confidently, forging a path that aligns with your vision for the future.

Committing to a quality, well-considered, long-term approach.

A commitment to long-term, quality investing is fundamental to the Nedbank Private Wealth philosophy. It’s about looking beyond short-term market fluctuations to build a portfolio that grows steadily, supported by a disciplined, research-driven approach. This means prioritising investments that offer sustainable returns over time and a range of solutions that align with different investment objectives that map to your financial goals. 

International investing presents a unique set of challenges and opportunities. By embracing a strategy informed by global diversification, a focus on long-term quality investments, and the guidance of a trusted partner, you position yourself to achieve your investment objectives. As you continue or embark on this journey, remember the importance of a well-considered investment philosophy and the value of personalised, strategic globally integrated advice and planning. With these principles and Nedbank Private Wealth at your side, you are well-equipped to structure, grow and protect your wealth in the dynamic landscape of global markets.

Want to know more? Here’s what to do:

• Contact your wealth manager.

• If you’re not a client yet and want to find out more about how we can help you, we would love to hear from you. You can contact us on 0800 111 263 or complete an online contact form.

•  To find out more about our international investment offering, click here.