By: Morningstar Investment Management South Africa
South African investors continue to seek offshore exposure amid local market volatility and a weakening rand. However, the increasingly complex global political, economic and regulatory landscape presents new challenges for both investors and financial advisors. Today, investors want reassurance that their offshore investments can deliver strong returns at a reasonable cost, while advisors must navigate these complexities to help clients stay the course.
To help meet this need, Morningstar Investment Management South Africa has launched the Morningstar Global USD Funds. The fund range—comprising the Global Cautious Fund, Global Balanced Fund, and Global Growth Fund—delivers institutional-quality global diversification in an accessible format, leveraging Morningstar’s global investment process and research capabilities.
“More than ever, local investors are looking to externalise their assets across geographies and asset classes globally, seeking greater diversification and long-term stability in their portfolios,” said Rone Swanepoel, Head of Sales at Morningstar Investment Management South Africa. “For advisors, access to truly global funds has become a necessity to remain competitive in an industry where client expectations are evolving rapidly.”
A research-led global solution
Speaking during Morningstar’s recent Globally Speaking webinar, Mike Coop, CIO at Morningstar Investment Management EMEA said that the company has more than 400 investment professionals across 28 countries and access to data on over 300,000 mutual funds and 12,000 ETFs. “This depth of research gives us the ability to uncover investment ideas that others may overlook, tapping into our multi-asset research, equity analysts, credit specialists and ESG experts. Our teams work collaboratively across time zones to bring the best thinking to every fund we manage,” said Coop.
Sean Neethling, Head of Investments in South Africa for Morningstar, added: “It is not just about finding opportunities. It is also about being able to act on them. These funds allow us to be nimbler in volatile markets. We are able to combine broad exposure via passive instruments where it makes sense and then lean into highly rated active managers when the opportunity arises.”
This hybrid approach is reflected in how Morningstar currently manages exposures: from overweight positions in underpriced regions like emerging markets and Latin America, to deliberate underweighting of crowded themes in overvalued US tech. Risk is actively managed through scenario testing and peer-reviewed decision-making, ensuring no single shock derails a portfolio.
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Delivering better outcomes in a volatile world
“We believe strongly in the power of diversification, but not just for its own sake,” said Coop. “Our portfolios are designed to withstand cycles, to be robust in unpredictable environments, and to deliver smoother long-term outcomes.”
The structure of the funds also gives advisors greater control:
- Better currency and tax management – Capital gains tax is only triggered upon exit, unlike model portfolios where ongoing trades may incur tax.
- Cost-effective access – By blending active managers with ETFs and passive instruments, costs are optimised without sacrificing opportunity.
- Truly diversified exposure – From equities and fixed income to select alternatives, the funds adapt to changing conditions using real-time global insights and research.
Neethling emphasised that cautious and income-focused mandates are especially compelling right now: “For advisors managing clients close to or in retirement, our Global Cautious Fund offers a starting yield of over 3.5%, which is significantly more attractive than what we could offer a few years ago.”
Staying the course with confidence
As global headlines grow more unpredictable, Morningstar urges advisors and their clients to tune out the noise and focus on what matters.
“There is never a perfect time to invest, but we believe it is never a bad time to invest either,” said Debra Slabber, Director: Portfolio Specialist at Morningstar. “History shows that staying invested in a well-diversified, actively managed global portfolio leads to better outcomes. These funds are built to help clients remain invested with confidence—even when markets get bumpy.”
Swanepoel agreed: “This launch is about giving advisors tools that match the realities of today’s markets, underpinned by global research, behavioural discipline, and a commitment to investor outcomes.”
The funds are available on leading offshore investment platforms, including Ninety One, Allan Gray Offshore, Glacier International, Old Mutual International, INN8 Offshore, Momentum Wealth International, Credo and Capital International Group.
For more information, please visit Morningstar Global USD Funds or contact Morningstar’s investment team.