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NEW LIBERTY EVOLVE RANGE OFFERS SOUTH AFRICANS A NEW AND VALUABLE WAY TO INVEST– 15% PER ANNUM RETURN OR YOU DON’T PAY!

30 October 2012 Liberty Life

Leading insurance and investment company, Liberty, unveiled an innovative range of investment products and portfolios that is set to revolutionise the way South Africans invest.

Appropriately named Evolve, the range of investment products is structured around what Liberty calls its Pay on Delivery investment philosophy. The unique offering means that clients will initially not be charged any upfront investment costs i.e. advice fees and setup expenses, and only once the promised returns have been delivered upon, will the client be charged - in other words, no delivery, no pay.

According to David Lloyd, Investment Product Divisional Director at Liberty, the Evolve range is Liberty’s response to its recognition that investors, like many other consumers, would prefer not to pay for products or services when they don’t deliver what they promise or in this case don’t produce the investment returns the client expects.

“While it’s become widely accepted that people have to pay upfront for most products or services before they know whether or not they will be satisfied with what they receive,” Lloyd explains, “at Liberty we have recognised the unique opportunity that exists to reverse this paradigm in the world of investments - only expecting our clients to pay for their investments once these have actually delivered healthy returns.”

“Fees and charges to cover these costs have always been levied irrespective of whether or not the investment ultimately delivers,” he explains, “but with the new Evolve range, that’s no longer the case, thanks to the innovative growth sharing model on which the products have been built.”

Growth sharing is an investment approach that does not make a deduction for any of the upfront costs, initial advice fees or profit margins. Instead, the client agrees to share the growth on their investment with Liberty but, only once the Target Return is reached annually does the growth sharing occur on returns above this target.

The Target Return is currently set at a 15% each year; for the first three years. After this there is no further growth sharing. “For future sales the Target Return will change, generally rising if interest rates go up and vice versa,” says Lloyd, “but its fixed when you take out your investment.”

Lloyd explains that, in addition to enabling cost effective investment, this growth sharing model offers significant risk management benefits for investors.

The only product charge is an all-inclusive on-going maintenance fee of just 0.5% a year; Lloyd explains that this has deliberately been set as low as possible in order to offer investors absolute maximum value for money, as well as rewarding long term investors with exceptional value.

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