Welcome to our February 2026 edition of FC Viewpoint.

IN THE NEWS:

• The JSE All Share Index is on 120 277 on 10 February 2026.
• 1 US Dollar will cost you R15.93; 1 Pound = R21.78 and 1 Euro = R18.98.
• SA inflation is 3.6% at the moment.
• The prime lending rate in SA currently is 10.25% per annum.
• 17 900 – The number of active cryptocurrencies globally today.
• For the first time since 1996, foreign central banks now hold more gold than U.S Treasuries (U.S. debt) in their reserves.

• Additional Retirement Annuity contributions before 28 February 2026
• Tax Free Savings contributions for the 2026 Tax Year – to a maximum of R36 000
• Offshore Investments – direct or indirectly

Here is why 2026 is a good time to invest offshore:

1. The Rand is Temporarily Stronger (Better Exchange Rate)
   Optimal Timing: The South African Rand (ZAR) has experienced a significant strengthening trend in early 2026. This strength provides South Africans with more foreign currency for their rand, essentially offering a “discounted” entry point into international markets.
2. Crucial Risk Mitigation and Diversification
   South Africa represents less than 0.5% of the global economy, yet many local investors have a disproportionate amount of their wealth in SA assets.
3. Hedging Against Long-Term Inflation and Currency Depreciation
   Developed markets typically experience lower inflation (2%–3%) compared to South Africa, meaning money held in hard currencies (USD, EUR, GBP) retains its purchasing power better over time.
4. Improved Access and Tax Efficiencies
   Offshore investing is no longer just for the wealthy. Minimums have dropped significantly, with some platforms offering options for as little as R50 000 once off.

   Investing through direct offshore platforms or offshore “wrappers” (endowments) allows for tax-efficient growth. These structures often allow for the reinvestment of dividends and interest without immediate tax, or provide a lower capital gains tax rate.

   Allowance Utilization: South Africans can invest up to R1 million annually under the Single Discretionary Allowance without tax clearance, and up to R10 million via the Foreign Investment Allowance.

5. Access to Global Growth Engines
   While emerging markets can be volatile, developed market stocks, particularly in the US, have shown strong long-term growth potential, allowing South Africans to participate in the success of global companies not listed on the JSE.

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