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Offshore investing has become an integral part of long-term financial planning, but it is also one of the areas where today’s decisions can have unintended consequences many years down the line.
Whether driven by diversification, currency exposure, or changing life circumstances, clients rely heavily on financial advisors to navigate a landscape that is often complex and unfamiliar.
Ninety One has always had a strong appreciation for the importance of platform choice, given the jurisdictional, regulatory and operational layers of complexity that offshore investing introduces. While pricing and investment opportunities often dominate many conversations, the platform plays a more significant role in shaping long-term outcomes than it is often given credit for.
Platforms are frequently viewed as commodities and interchangeable – offering a broadly similar solution. However, the way product wrappers are designed, governed and applied can materially influence long-term outcomes for clients. Two platforms may offer access to the same products yet differ in how they manage matters such as beneficiary nominations, capital gains tax and client transitions, with the result that one may be considerably better equipped to avoid unintended consequences than the other.
Choosing the right offshore platform is therefore not simply about accessing global markets at the lowest upfront cost. It is about selecting a partner that understands the complexity advisors and clients face and continues to adapt as client needs evolve. What may appear to be small differences can, over time, help avoid unnecessary tax exposure, support liquidity requirements and assist with estate planning.
At Ninety One, we view platform choice as a strategic decision rather than an operational afterthought. In our experience, a strong offshore platform is characterised by the following:
1 Clear, consistent digital processes across jurisdictions
The ability for advisors and clients to engage with offshore solutions through clear, intuitive, and consistent digital processes across jurisdictions is essential. Platforms that rely heavily on manual workflows and fragmented paperwork consume advisors’ time, which could be better spent on advice rather than administration. At the same time, efficiency must not come at the expense of regulatory integrity. Outdated onboarding and servicing processes often lead to avoidable delays and errors, which can erode confidence and trust in an environment where transparency and responsiveness are increasingly expected.
2 Product solutions that suit the changing needs of clients
As clients’ circumstances change, through relocation, evolving family structures or shifts in wealth-planning objectives, their platform solution needs to adapt alongside them. A strong platform allows clients to transition between products within the same ecosystem as their needs evolve, without unnecessary disruption. This flexibility is particularly important when dealing with complex beneficiary arrangements, changes in tax residency or estate planning considerations.
In many cases, the right structural solution can play a meaningful role in mitigating exposure to situs or probate risk and in ensuring timely access to assets for family members. Furthermore, for platforms to remain future fit, they must be able to support the transition of wealth across generations and deliver cost efficiencies through that process.
3 Experienced teams with offshore expertise
A knowledgeable and experienced team that understands both the technical and practical realities of offshore investing is an important differentiator. Staying ahead of regulatory and structural changes, finding solutions in complex cases and supporting advisors to achieve the best outcomes for clients all require depth of experience. Choosing a platform that invests in quality people who deliver real value to your business is crucial.
4 Clear, accessible reporting to support cross-border tax compliance
Tax and reporting requirements become significantly more complex in a cross-border context, particularly when platforms are not designed with offshore investing in mind. Advisors and clients need timely, accurate and easily accessible information that supports sound decision-making and tax compliance. The ability to generate consistent reports at the click of a button, regardless of the jurisdiction or product, helps reduce operational risk, minimise errors and ensure advisors are equipped with the information they need when it matters most.
5 Breadth of investment choice, efficiently administered
Providing access to a broad range of global investment options – including unit trust funds, model portfolios and share portfolios – is a fundamental component of a strong offshore platform. Just as important, however, is the ability to administer these investments efficiently and reliably.
Beyond access and administration, investors must also consider how their portfolios are structured. When investing in global share portfolios, returns aren’t the only consideration. Structuring your investments correctly can make a dramatic difference. One critical factor is protecting your assets from situs taxes. For South African investors, this could apply where investments include exposure to UK cash, UK shares and US shares. These taxes can erode up to 40% of your investment value upon death, nearly double the estate duty rates in South Africa, which range from 20–25%. For this reason, Ninety One makes share portfolios available via our Global Life Portfolio as it protects clients from the negative consequences of situs.
Platforms with the operational depth to manage real-world complexity are well positioned to support clients as circumstances evolve over time. Cheaper custodians and vanilla providers may seem appealing initially, but their limitations often only become evident when real-world complexity sets in. Choosing a suitable platform can help preserve wealth, reduce administrative burdens and ensure your legacy is protected.
How Ninety One applies these principles in practice
These characteristics are embedded across the Ninety One global offering, systems and business.
We have deliberately focused on simplicity without limiting choice. Our offshore offering consists of three purpose-built solutions, each designed to support clients at different stages of their financial journey or with differing requirements.
The Global Investment Portfolio offers flexibility, providing investors with access to their capital without being constrained by a minimum investment term. The Global Life Portfolio (sinking fund), with a five-year investment term, provides a tax-efficient offshore structure alongside meaningful estate planning advantages. Both solutions are tailored for South African residents.
For clients who are in the process of ceasing South African tax residency, the International Investment Portfolio offers a dedicated solution aligned to those needs. Importantly, these three portfolio solutions can be linked under family pricing, allowing families to benefit from lower costs and improved long-term compounding.
At Ninety One, our focus is on ensuring that our platform continues to evolve through ongoing investment in technology, product design and the expertise of our teams while actively supporting advisors with better information, clearer processes and a partnership mindset. Offshore platforms should be robust and well governed, but never unnecessarily complicated.
