Unlocking Global Potential: Empowering South African Investors Amidst JSE Challenges
15 Apr, 2024

Michael Patchitt, Chief Executive Officer at High Street Asset Management

 

 

 

High Street Asset Management, established in 2011, fills a niche in South Africa’s investment management sphere by specialising exclusively in offshore and Rand-hedge investing. This focus distinguishes High Street, allowing it to cater to the unique needs of South African institutional and retail investors seeking exposure beyond local markets.

 

 

High Street’s Offshore-Focused Regulation 28 Compliant Fund

 

At the core of High Street’s offerings is a range of tailored offshore investment strategies designed to address a spectrum of financial objectives, from conservative wealth preservation to aggressive capital growth. One notable product is its Regulation 28 compliant balanced fund, renowned for its 90%+ Rand-hedge composition. High Street offers solutions to mitigate local risks by advocating diversification into offshore multi-national companies listed on the JSE, such as Richemont and Glencore, as well as select Rand-hedge companies with foreign-derived revenue streams. This feature makes it an attractive option for retirement annuities, pension and provident funds catering to investors who are wary of domestic economic and political uncertainties. Notably, it ranks as the top-performing fund in ASISA’s South African – Multi Asset – High Equity category over the past five years among its 221 peers*. This strategy provides stability and growth opportunities beyond South Africa’s borders. 

 

Offshore Investment Strategy

 

High Street’s investment strategy is substantiated by the divergent performance of local and offshore markets. The Johannesburg Stock Exchange (JSE) has returned 118% over the previous decade, significantly lower than the S&P 500’s 508% in Rands**. Partially driven by the persistent depreciation of the Rand against the US Dollar, this has led to a material erosion of local investors’ global purchasing power. In response to such challenges, High Street’s strategies encompass diverse asset classes, currencies, and geographies, effectively mitigating risks associated with local market volatilities.

 

Amidst challenges like Eskom’s load-shedding and a notable trend of companies delisting from the JSE, with 22 businesses exiting the market in recent times ***, there’s a clear indication of diminishing appeal for both domestic and international companies to list on the exchange. This trend emphasises the importance of diversification beyond local markets, reinforcing High Street’s commitment to providing South African investors with robust offshore investment solutions. 

 

Proprietary Investment Process

 

The investment decision-making process at High Street is anchored in fundamental research and analysis conducted according to its proprietary HighWay investment system. A dedicated team combines experience with fresh perspectives to ensure informed decisions aligned with client objectives. Importantly, all team members are personally invested, demonstrating their confidence in High Street’s investment strategies and the HighWay system.

 

High Street collaborates with leading financial institutions in South Africa to enhance its service offering, providing clients with secure asset custody and extensive market access. This approach underscores High Street’s commitment to delivering comprehensive solutions tailored to meet the needs of South African investors.

 

High Street Asset Management stands as a leader in offshore investing in South Africa. Its tailored investment solutions, rigorous research process, and collaborative approach with leading financial institutions make it a suitable partner for investors seeking to diversify their portfolios and navigate global markets. To learn more about High Street’s distinctive approach and how they can assist in diversifying your portfolio through offshore investing, please visit www.hsam.co.za.

 

ENDS

 

 * Source – Profile Group’s FundsData, 10/04/24

**Source – Bloomberg, 28/03/24

***Source – Garth Theunissen of News24, published on 02/01/24

 

High Street Asset Management (Pty) Ltd is an authorised Financial Services Provider (FSP No. 45210) licensed with the Financial Sector Conduct Authority. For the full disclaimer, visit www.hsam.co.za.

 

 

 

 

Author

@Michael Patchitt
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