Global Education: Investment Solution
The cost of tertiary education is expensive especially if you have your sights set on providing your child with the opportunity to study abroad. For most parents, well-thought-out, forward planning and effective saving will be vital in ensuring that they are able to afford their child such an opportunity.
With over 15 years experience Global Education are leading experts at placing South African learners in over 300 universities and colleges worldwide. With a weakening Rand and the increasing costs of tuition saving for your child’s overseas university had never been more important. Global Education have partnered with Omba to provide parents and family a one stop solution for saving directly offshore into a globally diverse, low cost range of funds. Through a single application the family can transfer Rands offshore (SARB process approved) and invest directly into a globally diverse fund that changes strategy as your child nears university age.
the Omba and GLOBAL EDUCATION solution
Simple, direct access to offshore markets for long term investments:
- A single online application form to open accounts for the FX conversion and offshore fund investment process.
- Convert ZAR into USD/ GBP/ EUR at more competitive FX rates than most big banks.
- Send the money directly offshore into an investment which you hold in your own name (not in nominee form).
- Invest with no upfront costs and no redemption fees to get your investment back. No lock ups on your money. Redeem whenever you want with daily redemptions.
- You can invest with as little at USD10,000.
- Top up easily and regularly throughout the period.
- Have all SARB approvals handled in the process.
The process is secure and all entities involved are regulated by the Financial Conduct Authority (UK), the Central Bank of Ireland (IE) or the Financial Sector Conduct Authority (RSA).
There is no custody charge to hold units in the Fund and FX rates on externalisation are highly competitive.
You are buying direct units in an offshore fund, not via a SA feeder fund or asset swap.
One online application with intelligent document uploads to open all your accounts.
Underlying securities have intra-day liquidity as they are exclusively ETFs and single stocks. The Fund has daily redemptions and subscriptions.
THINGS TO CONSIDER WHEN SAVING FOR AN OVERSEAS EDUCATION
It is best to start saving as early as possible. Saving sooner will reduce the amount that you need to save each period (reducing the future financial burden) and allowing for a longer period over which your savings (if invested appropriately) can grow.
In an inflationary environment, the cost of tertiary education will increase with time, reducing the purchasing power of any cash saved. It is therefore important, not only to save, but also to be cognisant of the impact of inflation on your savings and to invest in a saving solution that aims to grow your investment in excess of inflation every year. Holding cash is almost guaranteed to lose money in real terms.
High investment-related costs erode investment returns over time; it is therefore important to be aware of all the layers of fees charged on investments and savings. Such costs include custody fees, investment management fees, execution fees and product costs. Many investment products may not limit costs or clearly disclose all layers of fees, resulting in hidden costs that erode returns over time.
When saving for a large future expense it is best to save in the currency in which you expect to incur the expense to avoid currency risk. This is particularly poignant for South African savers/investors as the ZAR is a relatively volatile currency which can be subject to large fluctuations and even devaluation over time. Saving over time in a ‘hard currency’ (such as USD), or where possible aligning the currency of savings with the currency of the future expense, will remove a substantial portion of the related exchange rate risk.
Investment in a globally diversified portfolio reduces the idiosyncratic risk associated with investing in a single region or country and allows investors to access and participate in the growth of a wider range of opportunities across the globe.
How Much Do I need to Save for UniverSity?
How much you need to save will all depend on factors such as:
- how many years it is until your child starts university
- what country or college they would like to attend
- what course they are interested in
- living and subsistence allowances
You can use our online calculator below to help determine how much you may need to save. First select the Country and then the Course that they may wish to study and you can then view potential cost estimates on how much you may need to invest quarterly.
Use the calculator below to browse universities in different countries offering courses. For a full list of all the universities and courses Global Education can support please contact them.
You can alter the course, years until university starts and your upfront contribution available now to estimate how much you may need to start investing for your chosen course.
To apply please use our calculator below to help estimate the amount you may need to save. First select a Country and then a Course of interest , you can adjust the years to save and initial contribution and then click CALCULATE to display the potential future values of tuition and amount required to save. Then click APPLY NOW to start the application process.
Please also CONTACT US with any other questions.
This calculator is intended to be used as a guide/broad estimate of what an overseas education may cost and the amount that should be saved. Results will be impacted by assumptions made which may vary from real life scenarios and outcomes. The key assumptions used in the calculation have been outlined below:
- The calculation assumes a starting value of the “Current investment available” (captured by you in this calculator) and a time horizon of the “Number of years until your child starts university” (also captured by you in this calculator).
- In addition, the calculation assumes:
- Inflation (CPI) of 2% p.a.
- Education inflation of 3% p.a.
- Equal quarterly contributions in the foreign currency of the selected course (the Rand amount may vary quarter-to-quarter)
- Capital Gains Tax rate of 18% (applied at the end of the savings period)
- A (nominal) return on Cash of 2.5% p.a.
- A (nominal) return on a moderate risk strategy of 5% p.a.
- A (nominal) return on an equity only strategy of 7% p.a.
- The calculation also assumes that the investment that follows a simplified trajectory outlined below:
- Prior to the start of grade 8 the total investment is held in an equity only strategy.
- From beginning of grade 8 to the end of grade 10 (3 years) the total investment is held in a moderate risk strategy.
- From the beginning of grade 11 the investment is held in cash.
Please note that this calculator and the assumptions used to develop this calculator are illustrative and at best provide a high-level and broad estimate of the amount one could save on a quarterly basis. The tool and the assumptions herein are not financial advice. Should you have any questions about the suitability of this product/investment based on personal circumstance and financial position please contact your Financial Advisor.
We hope you have found the website and calculator useful in estimating how much you may need to save for university.
Please note that Omba Advisory & Investment Ltd is not providing financial or investment advice to you. This process aims only to facilitate your investment. Should you have any questions regarding the suitability of your investments based on your personal circumstances and financial position, please contact your financial advisor.
Please ensure that you read the Minimum Disclosure Document (MDD) and Key Investor Information Document (KIID) relating to the OMBA Moderate Risk Global Allocation Fund prior to clicking ‘Submit’. By Applying you acknowledge and confirm that you have read and understood the MDD and the KIID, and that you have considered whether you would like to contact your financial advisor to obtain advice.
How does the process work?
1. Onboard >>
Mercury, Mercantile Bank and Prescient
Through a simple online onboarding process you will have a Mercury FX account, a Mercantile Bank account which can hold foreign currency and your Prescient investment account in Ireland.
2. Deposit >>
Deposit ZAR and do FX trade to USD, GBP, EUR
Once onboarded you pay ZAR into your Mercantile Account and then convert ZAR (via Mercury) to USD, GBP or EUR at competitive FX rates. All SARB approvals handled by Mercantile and Mercury.
3. SEND >>
Send USD, GBP, EUR to Prescient offshore accounts
During the onboarding process you would have selected into which of the OMBA fund share classes you wish to invest. The converted USD, GBP or EUR is paid to Prescient for onward investment into the Fund (via Mercury platform).
Funds invested in OMBA funds
Once the USD, GBP or EUR has arrived in the Prescient account they will be invested into the Funds which deal on a Irish business daily basis. You can view your investments online and make further contributions or withdrawals.
Foreign Exchange services are provided by Mercury, find out more at our website: https://mercury.global/
What are my offshore Rand allowances?
How does the South African Revenue Service and SA Reserve Bank process work?
What exchange rate is used?
What are the dealing deadlines?
What Omba Funds can I invest in?
What is Passive investing and what are ETFs?
How can I view my investment balance and redeem?
Global Education has consistently sent students overseas for the last 15 years, which is why we are the leading agency and the experts in Southern Africa for overseas education.
We are directly contracted to over 400 universities and colleges around the world such as USA, Canada, Australia, New Zealand, UK, Ireland, Mauritius, and the Netherlands. We help you connect and multiply your chances of a successful application. From start to finish , we assist you with the entire university application process to all of our universities partners. Our services also include assistance with study visa processes, securing on campus accommodation, UCAS processing, and guidance with personal statements.
We also help counsel students in making the best decisions and where necessary, we assist students secure on-campus accommodation and airport pick-up. Our offices are official IELTS booking centres, and we are also a registered UCAS Centre for all UK university applications.
Find out more at our website: https://global-education.co.za/
Is the process secure?
What are the charges?
How long does the application process take?
How do I track my application?
Speak to OMBA & GLOBAL EDUCATION About Your Requirements Today
Contact us to discuss your specific requirements or any questions.