At the Raging Bull Awards gala dinner held at the V&A Waterfront on January 31, the second big management company award was for unit trust companies that are domiciled offshore and whose funds are approved by the Financial Services Board (FSB) to be marketed to South African investors.
The Raging Bull Award for Offshore Company of the Year (2017) was shared between Investec and Nedgroup Investments, which tied for first place.
Offshore funds differ from local funds that invest offshore, which are included under the domestic unit trust sub-categories. They are denominated in currencies such as United States dollars, and they invest globally or in specific overseas markets, such as the United States or the Eurozone. Many South African asset managers have bases offshore where they manage such funds, although international managers that are permitted to market their funds in South Africa also qualify for the award if they meet its other criteria.
Note that funds offered by offshore-domiciled companies require you to move money offshore, so your investments are subject to South African exchange control regulations and the South African tax regime that applies to offshore investments.
The funds themselves are subject to the regulatory requirements of the jurisdictions in which they operate. However, FSB-approved funds are aligned with the FSB’s regulatory standards.