WINDHOEK - In today’s globally, interlinked economy, more and more people are looking for international exposure for their investment portfolios. But, by not broadening their investments horizon, investors narrow their opportunity base. Though not without risk, analysts warn, global exposure provides diversification benefits and is one of the underpinnings of modern wealth management.
According to Cornell Meeks, who earlier this year became Wealth Manager at Nedbank Namibia Private Wealth:“Investors are advised to take a global view in determining how to allocate their capital. Our international offering ensures a portfolio that combines domestic and international assets, allowing for better risk-return characteristics over time, opposed to a domestic centered portfolio.”
Last year FORBES Business Journal online reported that Namibians have successfully built empires in industries as diverse as agriculture, food, construction, energy and distribution. “We know that the success of high-net-worth individuals is not only a benefit for them but for the Namibian economy as a whole. I am certain that if you were to speak to any of these entrepreneurs who own and run their businesses that were founded on the building-blocks of a domestic offering, they would say that achieving sustainable success takes pushing beyond limits and expanding across borders,” Meeks adds.
Explaining the importance of expanding investment portfolios outside of Namibia and Southern Africa she notes that Nedbank’s international wealth offering is backed by market leaders and leverages on the bank’s presence in South Africa, the United Kingdom, the United Arab Emirates, Jersey, Guernsey and the Isle of Man.
“By diversifying your wealth internationally means when one market experiences a downward trend, another may, at that moment, experience an upward trajectory. Under the current climate, this is particularly relevant and, in fact, a crucial reality to take note and advantage of. Diversification means you can smooth out your gains and losses for a better long-term outcome,” says Meeks.
“Investing your wealth abroad provides additional leverage for settling international expenses, such as expenditures while travelling, as well as funding your children’s education as they pursue their dreams in a foreign country. The international investment universe is immense, and navigating it is at times daunting and overwhelming. This is exactly where your aspirations and financial goals tie with the commitment of Nedbank Private Wealth,” she concludes.