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The objective of investing offshore

is premised on a number of factors.

Um, we all know that the,

the South African economy contributes nowadays less than

half a percent to world GDP,

just highlighting its global insignificance.

It's also a limited opportunity set when it comes

to technology businesses

that have heavily influenced global markets

and global market returns over the past number of years.

And also exposure to tech enabled industries such

as healthcare, for example, whose defensive qualities have

provided great diversification benefit.

Another factor is exposure to the Rand

and to the South African political risk.

For many investors that have concentrated investments into

businesses and property in South Africa,

investing discretionary assets offshore has been a great way

to diversify that, uh, concentration risk.

In our view, south Africans should diversify all

of their long-term surplus assets offshore.

So that's any assets that are not required

to meet any business needs

or support any local living needs.

One could argue based on a number of qualitative measures

that both South African equity

and bond markets are priced at attractive levels at the

moment, and that with just a few small wins, uh, we,

we could propel growth to higher

and more sustainable levels, which is needed to address some

of the weaknesses in our economy.

And so the challenge then is to determine

is it now a good time

to actually retain South African exposure

and look to externalize at some point in the future?

Our investment processes weren't built around preservation

of wealth, and so we aim to avoid any unnecessary risk

and invest in markets where we have high conviction

of long-term outperformance.

The RAND has historically been a volatile currency,

and one could argue that the trajectory

of currency weakness is likely

to prevail into the future just given the inflation

differentials between South Africa

and some of the other developed markets.

Economies. Even though global markets are not all priced

attractively relative to South Africa,

there are still pockets of exposure

that we are very excited about, uh, future growth prospects.

So for us, a strategy of investing

and diversifying offshore remains as appropriate today

as it has in the past.