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The Momentum Global Matters logo against a faded multistory office building backdrop and a light blue sky.

Global Matters: investing offshore

The world of offshore investing can seem quite daunting, but doesn’t have to be. To cut through the complexity, Momentum Investments has launched a world class portal to address all your offshore investment concerns, challenges and even share best practice. Visit our Global Matters portal for independent views on offshore investment advice, legislation and top-of-mind matters to structure and get your clients to their investment goals.

Events

#

Think Tank

We have held “Think Tank” for 18 years. It’s called “Think Tank” as it is designed to give our largest intermediary and wealth management clients substantive investment thinking and ideas rather than the more typical ‘product push/sales’ event which we strictly avoid. Attendees include IFAs, wealth managers and consultants, from South Africa, the UK, Europe, Far East, Middle East and Latin America.

Weekly Digest

Our weekly blogs are aimed at providing our rapidly expanding global client base with a good mix of deep investment insights, combined with a topical twist and an improved, easy-to-digest tone.

2 MARCH 2020

Breathe, think, act

Lorenzo La Posta

When markets panic, the only investment mantra I believe in is "breathe, think, act". Sell-offs can provide fantastic buying opportunities, but elevated risks often accompany them.

24 FEBRUARY 2020

The dangers of DIY

James Klempster, CFA

Regardless of which environment our end users are used to, the allure of investing on your own, without professional help, is always present.

17 FEBRUARY 2020

Who cares wins

Andrew Hardy, CFA

Nobody could have missed the global awakening to the debate on climate change over the past year.


10 February 2020

Opportunities to leapfrog in Emerging Markets

David Lashbrook, CFA

Having personally experienced how the mobile telephone has transformed communications and enabled business in Africa, I wonder if the combination of poor existing...

3 February 2020

Unknown unknowns: the coronavirus

Michael Clough

When we talk about risks to our investment outlook, we always warn of the threat of ‘unknown unknowns’, events that come seemingly out of nowhere that can’t be predicted or planned for.



Thought leadership

In support of our revolutionary investment philosophy, we have conducted a series of informative interviews with industry thought leaders, on the benefits of an outcome-based approach to investing.

MARCH 2020

The global cognitive
distortion of panic and
COVID- 19

Paul Nixon

Where did all the toilet
paper (TP) go?

MARCH 2020

Advice migra(ne)tion:
A Perspective

Louise Usher

Popular press has not been
shy in advocating investing
offshore.

FEBRUARY 2020

In love with
the familiar

Greg B Davies, PhD

The right and wrong ways
to deal with our preference
for the known.

The offshore investing guide

Empowering financial advisers to have in-depth offshore investment conversations with their South African clients.

Why Momentum Investments?

Momentum Global Investment Management

In this introductory video about Momentum Global Investment Management, we will share with you who we are, how we invest, what makes our investment philosophy unique and why we believe you should invest with us.

Why Guernsey?

The jurisdiction in which an international investment platform conducts its business is an essential part of any due diligence. This video gives you the insight into why Guernsey was our international finance centre of choice.

The Momentum capability wheels

In a daunting investment world full of jargon and complexity, the capability wheels are comprehensive tools to navigate through the spheres of investment platforms, products and the different types of components, both locally and abroad.

Situs tax and when it applies

The video provides a concise view into Situs tax, what it is, when it applies and how to avoid it.

What is probate?

Understanding probate and its effect on a South African estate. The video also cover how you can add overriding contractual arrangements to avoid probate.

Want to know more?

What products are offered by MWI?


MWI administers the International Endowment Option (IEO) and an International Investment Option (IIO). Please refer to the summary document published by MWI for more detail on the products.

Who can invest in the MWI products?


Natural persons, offshore companies and trusts can invest in these products. However, SA companies, Close Corporations (CCs) and trusts do not qualify for a foreign capital allowance and can therefore not invest in these products.

Which tax legislation will apply to the products?


In most instances, an investor’s tax residency will dictate the tax legislation as mostly, the tax legislation where the person resides applies, subject to double taxation agreements. Various countries have double taxation agreements in place to determine where income or capital gains are taxable if the income or gain could be subject to tax in both jurisdictions. SA has a residency- based tax system. This means that, if a person is a SA tax resident, all worldwide income is subject to tax in SA, provided the double taxation agreement does not dictate otherwise.

Do the restrictions applicable to local endowment policies also apply in respect of the foreign endowments?


When investing in an endowment policy governed by the Long Term Insurance Act, the normal rules pertaining to the restriction period and access to funds apply. However, the product is specifically structured with 100 underlying endowment policies to allow for multiple withdrawals.

If an investor/policyholder did not select the “joint and survivorship option” in respect of the IEO, but they indicated who the proceeds must go to in their Will, how will this be dealt with in practice?


If the joint and survivorship option is not selected, the investment will fall into the investor’s estate and dealt with in terms of the estate administration process. Depending on the value of the investment, it may be necessary to comply with Guernsey’s domestic system of probate on death. This is an administrative and legal process in terms of Guernsey law that must be followed before the assets of a deceased person may be distributed to heirs.

If an investor/policyholder did not select the “joint and survivorship option” in respect of the IEO, and there are additional contract owners and a beneficiary for proceeds was appointed, what happens if the original investor dies?


The additional contract owners are automatically additional lives insured. Upon the death of any one contract owner, the policy will continue and the ownership of the deceased party will form part of his/her estate, which can be subject to Guernsey probate.

What is Guernsey probate?


Guernsey probate requires Letters of Administration to be obtained in relation to the investor’s estate to enable the Guernsey estate to be properly wound up. To obtain Letters of Administration, the registrar of the Ecclesiastical Court in Guernsey will require the investor’s will to be proved (or authenticated) in Guernsey and submitted together with a death certificate and an inventory stating the values of the estate. This may entail the added cost of appointing a Guernsey advocate to attend to the application.

Is a separate will required for offshore assets?


In Guernsey, the principle of freedom of testation applies to the law of succession. This means that individuals are free to dispose of their estates as they please on death. SA residents may choose to deal with their Guernsey assets in their SA wills or they may execute separate wills for their assets situated locally and in Guernsey.

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