View a previous poll and discussion on capital flight. In addition, some of the offshore funds being offered by local institutions carry an additional annual trustee fee.
Costs also vary depending on the type of offshore fund.
Derick Finlayson, director of Standard Corporate and Merchant Bank's asset management division, says costs tend to be higher on equity funds and lower on currency and gilt funds. There are a growing number of overseas funds which link the annual management fee to the fund's performance, measured against a predetermined benchmark. The annual management fee, because you pay it year after year, is more important than the upfront fee, which is a one-off payment unless you decide to switch into another fund. South Africans making their first investments abroad should establish whether the annual management fee quoted by the fund management company includes all other costs, such as brokerage. Sometimes there are other costs hidden in the fine print and confusing terminology.