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Democratising offshore Investing – Cinnabar launches new Global Balanced Feeder Fund

By: Cinnabar Investment Management

Cinnabar Investment Management has launched a new fund, the Cinnabar SCI Global Balanced Feeder Fund. Windall Bekker, Global Head of Distribution and Director at Cinnabar Investment Management, says the new feeder fund aims to make it convenient and straightforward for any South African to benefit from diversifying his or her investment portfolio offshore. 

“There is increasing interest in offshore diversification to take advantage of the investment opportunities in the global market and, of course, to hedge against long term rand depreciation and a local economy that has been going sideways for a long time,” Bekker says. “But the barriers to entering offshore markets have historically been considerable, especially for our smaller investors. Our new feeder fund aims to solve those challenges and make offshore investing as easy – and as rewarding – as possible.

“You could call it the democratising of offshore investing, as it allows all investors, whether they’re a company CEO or blue-collar worker, to have access to the same offshore opportunities.”

He points out that many offshore funds require a substantial opening investment, which can put them out of ordinary investors’ reach. An additional barrier to direct offshore investing is the need to keep within the SARS and Reserve Bank guidelines, along with a resulting more complicated tax situation. 

By contrast, the Cinnabar Global Balanced Feeder Fund allows South Africans to invest any amount in rands, on either a once-off or recurring basis. The Feeder Fund will then invest in a carefully selected range of excellent passive and active multi-asset global funds. Similarly, withdrawals are made in rands. 

The product management team is led by Greg Flash, Chief Investment Officer, and is supported by Holly Lobprise, Head of Research, as well as an investment committee. 

Cinnabar Investment Management was founded just over four years ago, growing particularly strongly during 2020. It currently looks after more than R2,1 billion in assets. 

“All South Africans, whatever their walks of life, should be able to benefit from the huge opportunities offshore to increase their wealth and provide for their families,” Bekker concludes. “We think there is pent-up demand for a product like this.”

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