Welcome to our March 2026 edition of FC Viewpoint.

IN THE NEWS:

• The JSE All Share Index is on 116 786 on 9 March 2026.
• 1 US Dollar will cost you R16.35; 1 Pound = R21.96 and 1 Euro = R18.99.
• SA inflation is 3.5% at the moment.
• The prime lending rate in SA currently is 25% per annum.
• Geopolitical tensions in the Middle East continue to dominate markets, with the risk of disruption to energy supply, particularly around the Strait of Hormuz, a key route for global oil shipments. Roughly 20% of the world’s oil supply normally flows through the Strait of Hormuz.
• Brent crude has surged above $110, the biggest rally since 2022

GRAPH OF THE MONTH: S&P 500 vs JSE All Share – Last 5 Years

One of the most common questions investors ask is:

“Should I invest locally or offshore?”

The short answer is that both play an important role in a well-diversified portfolio.

WHY OFFSHORE INVESTING MATTERS

Offshore exposure offers several important benefits:

1. Global diversification

Investing offshore gives access to thousands of companies and industries that are not represented on the JSE, including global technology leaders, healthcare innovators, and international consumer brands.

2. Currency diversification

Holding investments in hard currencies such as the US Dollar or Euro provides a natural hedge against rand weakness and political or economic uncertainty.

3. Exposure to global growth

Many of the world’s fastest-growing companies operate internationally, and offshore investing allows South African investors to participate in this growth.

WHY LOCAL INVESTING STILL MATTERS

Despite the appeal of global markets, South African investments still offer important opportunities.

1. Attractive valuations

The JSE often trades at lower valuations compared to developed markets, which can create long-term opportunities.

2. Strong dividend yields

South African companies traditionally pay higher dividend yields, providing attractive income for investors.

3. Currency diversification works both ways

If the rand strengthens, offshore investments may underperform local assets in rand terms.

THE KEY: BALANCE, NOT EITHER/OR

Successful portfolios rarely rely on a single region. The most resilient investment strategies typically include a blend of local and offshore assets.

For South African investors, offshore exposure also helps reduce concentration risk, as the local market is heavily weighted towards a small number of companies and sectors.

At FC Wealth and Investments, we believe the focus should not be on choosing local or offshore, but rather on building a globally diversified portfolio aligned with each client’s long-term goals and risk profile.

As the investment landscape continues to evolve, diversification remains one of the most powerful tools investors have.

Wealth regards,

Fanie Jansen Van Vuuren CA (SA), CFP®

Director: FC Wealth and Investments (Pty) Ltd

E: fanie@fcfin.co.za  |  T: 083 384 5868

W: www.fcfin.co.za