Allan Gray Offshore Endowment
If you want to invest your money offshore for the long term and your marginal income tax rate is higher than 30%, an offshore endowment offers tax efficiency and is a useful product for estate-planning purposes.
Investing offshore allows you to spread your investment risk across different economies and regions. It also gives you access to industries and companies that may not be available locally.
Your investment is into your choice of underlying foreign currency offshore pooled investments, called unit trusts or funds.
The effective capital gains tax rate for an individual investor is fixed at 12%. This means that if your income tax rate is higher than 30%, your capital gains will be taxed at a lower rate within an endowment. Different tax rates apply to companies and trusts.
Your beneficiaries can receive your investment immediately and there are no executor fees.
We can assist you with the administrative requirements involved in taking your money offshore.
View the product infographic for more information about the product and its features and benefits.
Reasons an offshore endowment may not be suitable for you
- If your income is taxed at less than 30%, you will be taxed more in an offshore endowment than in an offshore unit trust investment without the endowment product structure.
- Each plan consists of multiple underlying policies. During the first five years of your investment, known as the restriction period, you may only make one withdrawal per policy underlying the plan and the amount you may take is restricted. However, when you are not in a restriction period, you may withdraw from your investment at any time.
- Your five-year restriction period may be extended if you invest more over one year than 120% of your investments over either of the past two years.
- You need to use your own offshore allowance or money that is already offshore to invest.
- Transactions can take significantly longer than local unit trusts.
Choose a fund that suits your needs
Your investment returns come from the underlying funds that you choose. The available underlying funds are outlined below.
Aims to earn higher returns than world stock markets, without greater risk of loss.
Seeks to balance investment returns and risk of loss.
Seeks to apply a cautious balance between investment returns and risk of loss.
Our other foreign currency funds
| Orbis Optimal SA Fund (USD and Euro) |
The US$ class aims to outperform US$ bank deposits (compound total returns on one-month US$ deposits, currently based on the Bloomberg USDRA rate), while the euro class aims to outperform euro bank deposits (compound total returns on one-month euro deposits, currently based on the Bloomberg EUDRA rate). |
Download the Orbis Optimal SA Fund (USD) factsheet |
| Orbis SICAV Emerging Markets Equity Fund (USD) |
Seeks higher returns than the average of the emerging markets equity markets, without greater risk of loss. Its benchmark is the MSCI Emerging Markets Index (Net) (US$) Index. |
Download Orbis SICAV Emerging Markets Equity Fund factsheet
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| Orbis SICAV Japan Equity Fund (JPY) | Aims to earn higher returns than the Japanese stock market, without greater risk of loss. Its benchmark is the Tokyo Stock Price Index (TOPIX), including income, net of withholding taxes. | |
| Allan Gray Africa ex-SA Equity Fund (USD) | Aims to outperform African equity markets (excluding South Africa) over the long term without taking on greater risk of loss. Its benchmark is the MSCI Emerging Frontier Markets Africa ex-SA Index. | Download Allan Gray Africa ex-SA Equity Fund factsheet |
| Allan Gray Africa Equity Fund (USD) | Aims to outperform African equity markets over the long term without taking on greater risk of loss. Its benchmark is the MSCI Emerging and Frontier Markets (EFM) Africa Index (total returns). | Download Allan Gray Africa Equity Fund factsheet |
| Allan Gray Africa Bond Fund (USD) | Aims to achieve the maximum US dollar total return while minimising the risk of loss within the context of an African bond fund. Its benchmark is the FTSE 3 Month US T Bill + 4% Index. | Download Allan Gray Africa Bond Fund factsheet |
| Allan Gray Frontier Markets Equity Fund (USD) | Aims to outperform Frontier Markets over the long term without taking on greater risk of loss. Its benchmark is the MSCI Frontier Emerging Markets (FEM) Index. | Download Allan Gray Frontier Markets Equity Fund factsheet |
Other underlying fund options
You may also want to select foreign currency funds from other offshore investment managers.