HANNA ZIADY:  We are a small economy, to be fair.

PAUL LEONARD:  Yes. So it kind of makes the point in favour of you definitely have to diversify offshore. Now there is a strong school of thought that says you need to be benchmarking your investments against the inflation rate of the currency in which you live, because that’s where you are spending your money. Most South Africans are not in a position where they have what we call surplus money. In fact, most South Africans, as you probably are aware, have under-funded retirement. So they don’t even have enough core wealth, as we call it at Citadel. The core wealth is the wealth you need to generate your income and sustain you for the rest of your life. One of your biggest goals is to build up that asset base. So definitely a portion of that should be there.

One of the simplest ways for the average South Africa to get exposure offshore is through a diversified portfolio that has a component of offshore in it, like now the linked investment services can have about 25% of their funds exposed offshore. Many in fact have maxed out there. Right now many guys’ diversified funds are overweight offshore relative to their strategic benchmark.

HANNA ZIADY:  We are going to have to leave it there. Thanks to Paul Leonard of Citadel and Wayne McCurrie.