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Discovery Invest launches global investment offering in association with BlackRock and Goldman Sachs

22 June 2020 Discovery
Kenny Rabson, CEO of Discovery Invest

Kenny Rabson, CEO of Discovery Invest

Discovery Invest launched a greatly-enhanced global investment solution that uses shared value to create the world’s first exchange rate enhancer, and offers investment choices advised by BlackRock and Goldman Sachs, world leaders in asset management

Discovery Invest launched a greatly-enhanced global investment solution that uses shared value to create the world’s first exchange rate enhancer, and offers investment choices advised by BlackRock and Goldman Sachs, world leaders in asset management.

“International investing is driven by the well-understood investment principle of not putting all your eggs in one basket, and it’s now more relevant than ever,” says Kenny Rabson, CEO of Discovery Invest. “By investing globally over the medium to long term, South African investors can benefit from geographical diversification, exposure to different currencies, and access to new opportunities.”

Partnering with the world’s top asset managers

Discovery is making these new opportunities available to local investors by means of best-of-breed investment choices across a full range of asset classes. Advisers will have unique access to Goldman Sachs-advised share portfolios, while Discovery Global Portfolios offer risk-profiled, fully-managed, all-in-one solutions advised by Blackrock – the biggest asset manager in the world.

“Active asset managers – together with a passive blend of index trackers –provide Discovery’s clients with a diverse holding in order to capture opportunities across the globe, and achieve sustained, strong risk-adjusted returns within a given appetite,” Rabson notes.

Efficient structuring results in competitive, investor-friendly solutions

Rabson describes the enhanced Discovery Global Endowment as a competitive medium- to long-term investment solution that allows clients to buy in at much lower than the prevailing exchange rate on qualifying investment choices.

Over a period of 10 years, the currency enhancer was found to exceed all admin fees paid, making the Discovery Global Endowment one of the most cost-effective global endowment currently on the market.

“The product’s new multi-contract structure allows for greater investment liquidity, and it’s been efficiently structured to obtain an optimal tax outcome. This structure eases the administrative burden on financial advisers,” explains Rabson.

“Estate planning benefits include multiple owners and beneficiaries – allowing for the simple, safe and cost-effective transfer of investments in the event of death. Clients can also convert existing local endowments into global ones.”

Discovery Global Endowment investment options start at a minimum initial investment of USD 25 000, EUR 22 000, GBP 20 000, or ZAR 375 000.

Addressing challenges to global investing, and enabling new growth

“Following the success of our local shared-value investment model, we’ve used our learnings to fundamentally strengthen our international offering and add real value for both financial advisers and investors,” says Head of Research and Development, Craig Sher.

“We’ve also launched an intuitive new investment analysis tool that advisers can use to compare investment choices; rolled out smart verification to enable secure and seamless digital onboarding; and are building a global risk profiling tool to help advisers tailor solutions for their clients’ specific investment goals.”

Rabson concludes: “By taking strategic, tech-enabled steps to reduce or remove many of the traditional obstacles to investing abroad – complexity, a lack of options, high costs and inconvenience – Discovery is making global investment opportunities more accessible than ever. We’re excited to see how Invest International’s enhanced offering will continue to open up new possibilities for South African investors.”

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