Magwitch
Investments in Johannesburg

Magwitch Securities is an independent financial service provider offering a personalised service to both the corporate and individual.

This allows us to create and manage investments and model portfolios for clients. An ETF is a less expensive solution that offers exposure to the underlying asset class. This is because the issuer does not need to have a large cost structure that includes analysts as there is no need to research individual shares. Indexing or passive investing through the purchase of exchange traded funds avoid most of the high fees associated with actively managed funds. On the Investors instruction Magwitch can trade in any share or ETF listed on most major stock exchanges in the world. Magwitch utilises the Saxo Bank platform to manage models and execute trades. The underlying shares and ETFs are housed with the Saxo Group’s safe custodian, the Citibank Group. Investing offshore can often seem to be quite daunting. There are a number of different options competing for your investment and you, as an investor, are forced to make decisions around where to invest and what to invest in. With so many different options there is always the possibility that the investor takes the easier route and avoids the offshore discussion entirely. To retain all your assets locally is however not the correct decision. To ignore offshore would be to avoid diversification. Diversification is a technique that reduces risk by allocating investments amongst various asset classes and geographical locations. The various asset classes react differently to events and thus a diversified investment tends to reduce downside risk as not all assetclasses move up or down at the same time. The Johannesburg Securities Exchange, although well-developed and containing many large globally diversified businesses, makes up only 1% of the world’s total listed equity universe. Adding international exposure spreads your risk across different economies and geographic regions and provides the potential to earn returns from a wider set of opportunities over the long term. It gives you the opportunity to invest in the largest global brands out there. You can make any number of investments during the year so long as the aggregate total of the investments falls below the annual allowance. The Magwitch offshore portfolios offers individuals access to offshore markets at a low cost with a portfolio which suits your individual risk profile.