Irrespective of your residency, if your assets are based in one jurisdiction with various economic and socio-political risks, there is a definite need to protect your assets by diversifying to a jurisdiction that offers economic and political security. The advantages of offshore jurisdictions, can include; tax benefits, confidentiality and security of a government committed to the needs of the offshore investor.
Very often investors are over exposed to the economy and market of their place of origin or residency. Investors should be looking far beyond what may be readily familiar and looking for diversification into markets that provide value and opportunities that are not available ‘locally’.
If you are resident in what may be termed an ‘emerging market’, where currency risk, political issues and economic disparity are threats to the future growth of the economy, it is ever more pertinent to seek offshore diversification.
The constraints of over exposure to one particular market, results in missed opportunities . For example, pharmaceutical shares in one market can differ considerably in opportunity to those held on other exchanges – through offshore exposure , you can follow the best opportunities in the markets and currency denominations that make economic sense at any particular moment. Financial experts are unanimous in recommending diversification through offshore exposure. It is obvious, no matter what expert you consult, that offshore diversification is key to individual financial stability and appropriate long term financial planning.