By Werner Gerber, CFA® | Founder, ClearGauge Wealth
ClearGauge Wealth (Pty) Ltd is an Authorised Financial Services Provider (FSP No. 55826).
Last fact-checked: 8 August 2026
Quick Answer
In brief There is no single offshore percentage for South Africans. Start with the job of foreign assets. Ask what those assets need to do. Consider the currency of future spending. Check South African and rand exposure already held. Then check time, access needs and the ability to stay invested through market and currency swings. A percentage alone is not personal advice.
Visual Summary
| Decision question | Why it matters | What to check |
| What currency will future spending use? | Study, travel, a move or local rand costs can need different currencies. | List known costs, dates and likely currency. |
| What exposure already exists? | A local account may own firms with foreign income. A direct foreign holding adds other risks. | Read fund sheets, retirement reports and business ties before adding more. |
| Can the plan handle two types of movement? | Foreign markets can fall while the rand rises. The rand can fall while foreign assets are weak. | Test a hard market period, not only a currency story. |
| Which route is under review? | A local fund, feeder fund and direct account can have different costs, tax, custody and transfer steps. | Compare the rules and documents before choosing a route. |
Note This is a decision map, not an allocation, product or currency recommendation.
Decision Framework
1. Map the Currency of Future Spending
Start with the job of the money. Many families earn, spend and retire in rand. Others may need money outside South Africa. This can be for study abroad, travel, property overseas or a move. Those costs may need a different currency.
List each goal, likely date, size and currency. Separate known costs from plans that may change. A rand forecast cannot close a gap. Look for the gap between money held and money needed.
2. Find the Exposure You Already Have
Foreign exposure can be hard to see. A retirement fund, unit trust, ETF or local firm may own foreign assets. It may earn foreign income. A business owner may also rely heavily on South Africa.
Make a simple list. Do this before choosing whether offshore exposure is too low or too high. Include retirement funds, investments, shares, property, business interests and debt. Look for shared household risk.
3. Test the Full Risk, Not Only the Rand
Offshore assets can spread country and currency risk. They also add risks. Some come from foreign markets and rand moves. Others come from tax, legal, platform and custody issues. Markets and the rand do not move in a fixed way. A foreign investment can fall in its own currency. The rand may move the other way.
Ask what a bad result means for the goal. A large fall matters more if money is needed soon. For a long-term goal, it may matter less. There may be time to recover. Time and whether you can wait matter as much as where the asset is held.
4. Check the Route and Rules
Routes to offshore exposure differ. Check fees and tax records. Check ownership, access, currency conversion and paperwork. South Africa also has capital-flow rules. Foreign-currency deals use authorised channels. Rules can change. Check the process before a transfer.
Regulation 28 also matters when retirement money is involved. Its rules apply to retirement funds. Read Regulation 28 and Retirement Savings before treating a retirement fund as a blank page for personal offshore choice.
Key Concepts
Foreign Exposure Is Not the Same as Foreign Currency Cash
A global share, a fund with foreign holdings and cash in a foreign bank are not the same. A known overseas bill may need foreign currency on a set date. A long-term share holding may aim for growth. It can still move sharply.
Diversification Has Limits
Assets in more than one country can mean less dependence on one market. But they do not remove risk. Global shares can fall together. Currency moves can help or hurt the final rand result. Fees and tax can too.
A Local Listing Can Still Have Global Links
Listing country alone can hide how a business earns. It can also hide where its assets are. Read the mandate. Then read the holdings. A fund called offshore may still hold a mix of currencies, regions and assets.
Worked Example
Consider two households. One plans to spend and retire in South Africa. Its known costs are in rand. The other has a foreign-currency university cost in eight years. Both may own global assets. But the assets have different jobs.
Illustration only. This example does not say Household B should match the full cost with one asset type. It also does not say Household A should use a set percentage. It shows why one offshore allocation cannot fit everyone. Other savings, timing, affordability and ability to bear losses can change the answer.
Reality Check
An offshore move can feel urgent after a sharp rand move or bad news. Urgency is not a plan. A move made only to avoid the next rand shift can leave too much in one place or limit access. Pause. Name the goal first. Then list the route, costs and current holdings. Make a short note. List the goal, date, cash need and job of each holding. Keep it with the plan. Use it to check the mix when the rand moves. Keep it up to date. It can stop a short-term move from driving the full plan.
The same discipline applies to market falls. Building an investment portfolio that can survive a market crash shows why a plan should be tested before a hard period, not rewritten in the middle of one.
Common Mistakes
Chasing the Latest Rand Move
A weak rand can make offshore assets look good after they have risen in rand terms. A stronger rand can make them look poor. A recent price move does not say what fits the goal. Keep it separate from the reason for holding the investment.
Ignoring Existing Foreign Exposure
A new foreign investment may add foreign exposure you already hold in retirement funds or other accounts. The result may still be right. A clear reason is still needed. Start with the full balance sheet. Compare any new account with it.
Treating Exchange Rules as a Footnote
Direct transfers and foreign accounts can involve capital-flow, tax and provider rules. These rules are part of the decision. They are not paperwork for later. Check current rules with the authorised channel. Seek expert help for a large or complex case.
What This Framework Does Not Decide
This guide sets out choice questions. Each choice needs your facts. This includes a number, fund, account or trade. Tax and exchange-control advice need case facts. Personal advice needs a full view of holdings, tax residence, family plans, loss capacity and product terms.
Frequently Asked Questions
Is offshore investing always less risky?
Offshore assets can mean having less tied to South Africa. But they add foreign-market, currency, legal and running risks. A full plan decides whether risk falls. The word offshore does not decide.
Does a weaker rand guarantee a better offshore result?
A foreign investment can rise or fall in its own currency. The rand can also move either way. Fees, tax and timing matter. Currency is one part of total return, not a forecast.
Can I invest directly offshore?
South African residents may have allowed routes. They are subject to current capital-flow, tax and provider rules. The process can differ by case. Check current South African Reserve Bank rules. Also check SARS and authorised-provider rules before acting.
Does my retirement fund already give me offshore exposure?
A retirement fund may already have offshore exposure. The share and mandate differ by fund. Read the fact sheet, annual report or member information. Retirement-fund rules are separate from a personal investment choice.
Financial Clarity Review
Before a meeting, list each major goal. Add its currency and date. Bring recent fund and investment fact sheets. List foreign assets already held. List business ties too. Then ask what job offshore exposure should do. Ask what risks it adds. Ask which costs and access rules apply. This gives an adviser a clear brief. The list will not set a percentage. Keep the related documents together.
Continue Exploring
Continue with active versus passive investing, building a portfolio for a market crash, and the difference between financial planning and investment management.
Sources and Further Reading
Primary sources checked on 2 August 2026
South African Reserve Bank: Financial Surveillance FAQs – authorised channels, exchange-control information and individual offshore-investment questions.
South African Reserve Bank: Financial Surveillance – the Financial Surveillance Department and the administration of exchange controls.
National Treasury: Regulation 28 amendments – retirement-fund investment limits and concentration safeguards.
FSCA: Search for a financial services provider – verify a financial services provider’s authorisation.
Important Disclosure
General information only This article is general education, not personal financial, investment, tax or legal advice. It does not recommend a product, provider, fund, currency, percentage or transaction. Rules and product terms can change. Consider advice from a suitably authorised financial adviser and, where relevant, a tax or exchange-control specialist before acting.