Anchor Capital: Where to invest offshore

Anchor Capital recently launched a four-part webinar series aimed at providing guidance on offshore investments for investors looking to diversify their portfolios. Nolan Wapenaar, Co-Chief Investment Officer at Anchor Capital, joined CNBC Africa to discuss the current investment landscape and where opportunities lie for investors seeking to park their money offshore. Despite the recent strength of the rand tapering off, Wapenaar emphasized that now is still a favorable environment for offshore investments, as market indices appear fully priced and opportunities abroad abound. Wapenaar highlighted the importance of structuring investments appropriately and tailoring investment strategies to individual circumstances. When it comes to offshore investments, Wapenaar pointed out that while index-level equity prices may seem fully valued, there are still compelling opportunities within specific market sectors. In particular, he mentioned high-growth tech companies like Facebook, which he sees as undervalued relative to their potential. Additionally, Wapenaar noted that traditional value investments in durable companies also present attractive opportunities for offshore investors. As the economic landscape evolves and market conditions become more certain, investors may pivot back towards growth-based opportunities. Wapenaar discussed the accelerated adoption of technology during the COVID-19 pandemic, which has propelled tech companies like Facebook to new heights. He noted that the pandemic hastened tech adoption by about five years, resulting in significant client acquisition and business model acceleration for tech firms. Despite concerns about overvaluation in the tech sector, Wapenaar expressed confidence in the continued growth potential of dominant tech companies like Facebook. He highlighted the importance of evaluating companies based on their long-term growth prospects and potential upside amid evolving regulatory landscapes. Addressing the theme of value investing, Wapenaar shared insights on opportunities in the European and UK markets. He noted that the unlock process post-COVID has been uneven globally, with some economies unlocking faster than others. As a result, European markets have lagged behind in terms of recovery, presenting investors with value opportunities that may not be as readily available in the US market. With the global economic cycle still in its early stages, Wapenaar emphasized the potential benefits of investing in cyclical companies for sustained growth. Overall, Wapenaar's advice to investors navigating offshore investments is to focus on tailored strategies, identify undervalued opportunities, and consider the long-term growth potential of companies in various market sectors.