2018 has been an extremely frustrating year for investors as markets have fluctuated wildly. The JSE All Share and World MSCI Indices’ returns year-to-date are down 11% and 2% respectively in Rands. Equity markets by nature are volatile and this is a critical aspect that investors need to understand and tolerate. Markets have corrections and these occasions require patience so that investors may benefit. Corrections are when valuations are normalised or brought back to their long-term averages. Investonline has had another good year as clients have benefited from a lower risk investment strategy resulting in our average risk-profiled portfolio outperforming the industry average by 3%. We believe investor returns will be better in 2019.

This is a regular comment from frustrated South African investors. We understand it, but firmly believe it’s untrue and deserves scrutiny. We draw on three recent reports from top fund managers that we rate highly. They point out that Cash is not King, that the local economy is in fact at a trough and turning up, and that equities should produce 13% annual returns over the next five years.

Using the right investment manager is crucial to achieving your long-term goals. How much of the success is skill versus luck? We look at what makes a good investment manager, which will make a massive difference to your investment success.

The JSE All Share Index is down 14% this year and flat over the last five years. The past few years have been extremely testing times for investors. However, market pain brings opportunities. At Investonline we have been cautioning investors over market risks, but now local valuations are looking far more compelling as we reach cycle lows. Now is not the time to flee and disinvest.

Yes, you should invest offshore. But, timing and the where and how is worth investigating. The biggest mistake is making an emotional “knee -jerk” decision. This often leads to taking on inappropriate risk and at the worst time, often after the horse has bolted. It’s important to make a rational decision and to take your money offshore for the right reasons.

A few critical questions to consider before investing offshore include: what percentage of assets, direct or indirect, where, what product, which investments, what asset allocation, taxation effects, estate planning /duty implications, timing?

We answer these questions with our 18 frequently asked questions.