The Rand has been one of the strongest EM currencies in the past few weeks, but the strength will be short lived. The Rand has been boosted by a dovish FED, an ECB trying to balance monetary policy and economic growth, and the easing of Trade war fears. But all the positives are fickle and cautious investors should be looking a few steps ahead. 

Investors looking to diversify offshore should be using the current strength to their advantage and take funds offshore. Even investors who don’t want to take funds offshore can look at locally listed offshore ETFs or Structured products to gain offshore exposure. Some offer downside protection from losses. 

One of my favourite structured products is the Tandem Protect from Old Mutual. The 15th Tranche of the Tandem Protect closes today but a new tranche should open soon. 

The 15th tranche offer’s 11.04% compounded return over three years on 50% of your capital and the other half is exposed to an equally weighted index of the S&P and Euro Stoxx 50 with 100% downside protection in Rands. You are guaranteed an 18.45% total return on your funds after 3 years and still have 100% upside participation in the index growth. Minimum investment is R2 million and it’s only open to individuals and trusts due to the tax benefits within the product 

If you’d like further information on structured products or offshore ETFs please don’t hesitate to contact me on and I will get back to you. 

The week ahead: 


Other Economic data releases of interest…  

Short Term Ideas 

Long Term Ideas 

The Tax year closes soon, investors looking to lower their tax liability through retirement savings should contact us for the various options we provide. Email for further information with Retirement Savings in the subject line.