GLOBAL ENDOWMENT - Discovery
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
GLOBAL ENDOWMENT
CONTENTS
AT A DECIDING HOW WHY THE INVESTMENT
GLANCE TO INVEST DISCOVERY CHOICES
GLOBAL
ENDOWMENT?
SMART FEES ON YOUR OTHER GLOBAL
VERIFICATION INVESTMENT INVESTMENT
PLANS
AT A GLANCE
INVEST BELOW THE PREVAILING EXCHANGE RATE
The Global Endowment provides
you with a simple solution You could qualify for an enhanced exchange rate depending
on your investment choices and term of investment.
to hold international assets.
It allows you to invest below the
prevailing exchange rate and FLEXIBILITY AND TRUST FEATURES
offers you maximum efficiency
through the most optimal You can nominate multiple owners and beneficiaries.
You can also nominate a sub-trust in the Discovery Life
tax and estate structuring,
Purpose Trust as a beneficiary for proceeds.
investment liquidity and cost-
effective international
trust options. ACCESS TO YOUR INVESTMENT
Each plan has 100 contracts. You can make multiple
INVESTMENT TYPE withdrawals, subject to regulatory restrictions.
Guernsey-linked life plan with easy
tax administration in USD.
ACCESS TO A WIDE RANGE OF INVESTMENT CHOICES
INVESTMENT TERM Our wide range of investment choices allows you to
structure a global investment portfolio that suits your needs.
Medium to long term
Our managed solutions leverage the expertise of the biggest
and best international asset managers, offering choice
between risk-profiled portfolios with allocations managed by
MINIMUM INVESTMENT
BlackRock and share portfolios with allocations advised by
AMOUNT
Goldman Sachs.
USD 25 000;
EUR 22 000;
GBP 20 000; or
ZAR 375 000
SIMPLE DIGITAL ONBOARDING
Hassle-free direct international investing through the use
of smart verification.
View provider disclaimers
Read the Global Endowment Fact File relevant to your investment Things to discuss with your financial adviser
DECIDING HOW TO INVEST
You can make your
contribution in US dollars (USD),
British pounds (GBP) euros (EUR) MINIMUM INVESTMENT AMOUNT
or rands (ZAR). The minimum investment amount per currency is as follows:
USD 25 000
GBP 20 000
EUR 22 000
ZAR 375 000
LOCAL MONEY
You can make your lump-sum contribution in ZAR. If you invest
in qualifying investment choices, you could qualify to invest below
the prevailing exchange rate with the currency enhancer.
MONEY IN OTHER COUNTRIES AND CURRENCIES
If you already have money or investments abroad, you can move it
into this investment. If you invest in qualifying investment choices,
you could still qualify for an enhancement from the currency
enhancer.
MONEY FROM AN EXISTING LOCAL ENDOWMENT
If you have a qualifying local Discovery lump-sum Endowment Plan,
you can choose to convert your investment to a Global Endowment
on your boost payment date, instead of getting your local boost.
If you do this, you may qualify for an even greater enhancement
through the currency enhancer at the time of conversion.
Read the Global Endowment Fact File relevant to your investment Things to discuss with your financial adviser
WHY THE DISCOVERY
GLOBAL ENDOWMENT?
FLEXIBILITY THROUGH MULTIPLE OWNERS
INVEST BELOW THE PREVAILING EXCHANGE RATE
AND BENEFICIARIES
When you convert your rands into another currency,
the currency enhancer is designed to let you he Global Endowment may be owned by multiple
T
effectively do the conversion at a better exchange owners and multiple beneficiaries and types of
rate than what is available in the market. beneficiaries can be nominated, which allows for
the investment proceeds to pass to the beneficiaries
without the need for international probate.
If you are invested in the latest version
of our local lump-sum Endowment
TAX EFFICIENCY
(launched in February 2020), you can
choose to convert your investment to
We take care of the tax administration (calculation,
a Global Endowment on your boost
collection and payment to SARS) on your behalf,
payment date, instead of receiving your
which makes the tax process much simpler. Taxation
local boost. If you do this, you will get an on endowments may also result in lower tax for
even greater currency enhancement investors with higher marginal tax rates.
at the time of conversion.
ACCESS TO YOUR INVESTMENT
ESTATE PLANNING AND INTERNATIONAL Each plan has 100 contracts, which allows multiple
TRUST ADVANTAGES withdrawal possibilities during the initial five-year
period, and unlimited withdrawals thereafter.
Your investment forms part of your South African
estate, and therefore it avoids the complications
which could arise from having part of an estate MULTIPLE CURRENCIES AND A WIDE RANGE
located in another country. You can also get access OF INVESTMENT CHOICES
to an international trust at a cost-effective price, and
get a refund of up to 50% of the annual trust fee You can make your contribution in US dollars (USD),
after five years. British pounds (GBP) euros (EUR) or rands (ZAR), and
choose from a wide range of investment choices.
You can also switch seamlessly between investment
choices and completely customise your portfolio for
your own specific requirements.
Read the Global Endowment Fact File relevant to your investment Things to discuss with your financial adviser
INVESTMENT CHOICES
Our wide range of investment choices allows you to structure a global investment portfolio that suits your needs. The range
of investment choices, as shown in the diagram below, has been designed to pair sophistication with simplicity. Our managed
solutions leverage the expertise of the biggest and best international asset managers, offering choice between risk-profiled
portfolios with allocations managed by BlackRock and share portfolios with allocations advised by Goldman Sachs.
We also have a wide variety of external investment choices from international asset managers to choose from on our open
architecture, as well as a researched shortlist of leading investment options picked by a team of analysts from around the world.
Read more about the international investment options
View provider disclaimers
Read the Global Endowment Fact File relevant to your investment Things to discuss with your financial adviser
SMART
VERIFICATION
Global investing has never been easier with our smart verification. When you invest with us, you no longer need to provide
original identity documents, proof of address or proof of banking. We have eliminated the need for these original supporting
documents by building a first-of-its-kind smart digital functionality, called smart verification. With this functionality, we can verify
the details you supply to us on your application form digitally without the need of these physical, certified documents.
SMART VERIFICATION WITH DISCOVERY
05
02 03 04
Application form Certified proof Certified ID Certified banking Assessment of
Issue case
and source of funds of residence documents details application
INTERNATIONAL TRUSTS AND COMPANIES
Currently, this functionality is available to individual investors who are South African citizens. While international companies and
trusts must still provide the entity’s supporting documents, such as trust deeds and founding documents, directors and trustees
who are SA citizens no longer need to supply their identity documents or proof of residence*.
* If we are unable to verify your details, you may still need to submit these documents to us.
Read the Global Endowment Fact File relevant to your investment Things to discuss with your financial adviser
FEES
ON YOUR FEES TO YOUR FINANCIAL ADVISER
INVESTMENT
Your financial adviser may charge initial
and/or ongoing fees for the advice they give.
See more about the advantages of using
a financial adviser.
There are certain fees that apply to your investment
FEES TO DISCOVERY INVEST
There are no initial investment fees.
We charge a single, competitive yearly
admin fee, which depends on the total value
of all your Global Endowments. This fee includes
trustee fees, custodian fees and international
administration fees.
An access fee may also be applicable,
depending on your investment choices.
FEES TO THE INVESTMENT MANAGERS
Investment managers may charge initial and
ongoing fees. These fees depend on the investment
choices you choose.
Refer to the Fact File for more information
about all fees.
Read the Global Endowment Fact File relevant to your investment Things to discuss with your financial adviser
OTHER OTHER GLOBAL INVESTMENT OPTIONS:
GLOBAL
INVESTMENT Global Recurring Endowment
PLANS
The Global Recurring Endowment is a unique investment
plan that allows you to invest monthly in USD with ease.
We are the only company that allows you to invest globally
in an endowment on a monthly basis. An endowment is
an investment plan that helps you save over the medium
to long term, while giving you estate planning benefits and
We offer three other global investments tax-efficient structures.
to suit your investment needs.
Global Flexible Investment
Visit www.discovery.co.za for more information The Global Flexible Investment is a lump-sum investment
on our other global investment plans. plan that gives you access to your money when you need
it, and a wide range of international investment funds
to choose from, ensuring you can take advantage of
investment opportunities all over the world.
Global Discovery Retirement Optimiser
The Global Discovery Retirement Optimiser allows you to
save for retirement in US dollars and convert your unused
life cover from your Discovery Dollar Life Plan into tax-free
income in retirement, through a benefit called the Dollar
Life Plan Optimiser.
Through shared value, you can also benefit from fee
discounts to help you save towards the international
retirement you aspire to.
Read the Global Endowment Fact File relevant to your investment Things to discuss with your financial adviser
READ THE RELEVANT FACT FILE AND
SPEAK TO YOUR FINANCIAL ADVISER
The details of the features we offer are set out in
the relevant Fact File. Speak to your financial adviser
to help you make informed decisions about your
investments. If you don’t have a financial adviser,
you can contact our call centre on 0860 67 57 77.
To optimise the domicile, legal structures and
liquidity, the Discovery Global Endowment consists
of multiple endowment insurance contracts issued
by the Guernsey branch of Discovery Life Limited.
www.discovery.co.za
Product rules, terms and conditions apply. This document is meant only as information and should not be taken as financial advice. For tailored financial advice,
please contact your financial adviser. Examples and figures are for illustrative purposes only. The value of investments may go down as well as up and past
performance is not necessarily a guide to the future. Fluctuations or movements in exchange rates may also cause the value of underlying investments to go up
or down. This document does not include the full details of how our investment plans work. The information in this document must be read with the relevant
fact files. The Global Endowment Plan is a unit-linked life insurance policy contract, issued by Discovery Life International, the Guernsey branch of Discovery
Life Limited (South Africa), licensed by the Guernsey Financial Services Commission under the Insurance Business (Bailiwick of Guernsey) Law 2002, to carry
on long-term insurance business. Discovery Life is a registered long-term insurer registered under the South African Long-term Insurance Act of 1998 and an
authorised financial services provider (registration number 1966/003901/06). Discovery Invest is an authorised financial services provider (registration number
2007/005969/07). All benefits are offered through the insurer. The insurer reserves the right to review and change the qualifying requirements for benefits at any
time. The information given in this document is based on Discovery’s understanding of current law and practice in South Africa and Guernsey. No liability will
be accepted for the effect of any future legislative or regulatory changes.
Lima Capital LLC is a company licensed under the Laws of Mauritius as an investment advisor and a collective investment schemes manager. It is regulated by the
Mauritius Financial Services Commission. The outsourcing agreement provides for an annual fee of 0.05% of the total assets under management (AUM) for Global
Endowments. This fee is included in the annual admin fee and pays for the following services: to enter into, vary, or renew Life Insurance Policies for and on behalf
of the Insurer, and in the name of the Insurer (0.04%); to determine the value of policy benefits under Life Insurance Policies (0.005%); to settle claims under Life
Insurance Policies (0.005%).
We pay this fee to Lima monthly in advance and it is capped at USD7,500 a month (based on volumes that are currently foreseeable).
RCK_71460DI_14/05/2020_V23WHAT TO
DISCUSS WITH
YOUR FINANCIAL
ADVISER
SPEAK TO YOUR FINANCIAL ADVISER ABOUT
THE FOLLOWING: Your trusted financial adviser is here
to assist you on your international
WHAT ‘INVESTING GLOBALLY’ MEANS FOR YOUR investment journey
OVERALL INVESTMENT PORTFOLIO
Introducing direct international investments to your overall
investment portfolio from a South African perspective has
ADVANTAGES OF USING
many implications that need to be carefully considered.
A FINANCIAL ADVISER
ESTATE PLANNING AND TAX CONSIDERATIONS
KNOWLEDGEABLE ABOUT MANAGING MONEY
Planning for the next generation is an important
Financial advisers are qualified in financial
consideration when investing globally. It is also important
planning and can help you decide on – and keep
to consider tax as it could erode your investment returns
track of – your investment goals, savings strategies
if not managed properly.
and retirement options.
THE UNPREDICTABLE NATURE OF MARKETS
LICENSED TO SELL CERTAIN PRODUCTS
The value of investments may go down as well as up and
We only allow financial advisers who are registered
past performance is not necessarily a guide to the future.
with the Financial Sector Conduct Authority (FSCA)
Fluctuations or movements in exchange rates may cause
and have professional qualifications (passing
the value of underlying investments to go up or down.
regulatory examinations and undergoing training),
to sell you specific financial products. They are
DIVERSIFICATION
required to have extensive knowledge of the
It’s important to diversify your investments across different product they are recommending to you, and they
asset classes, such as equities (shares), bonds, property and must be professional and skilled in the financial
cash. This will ensure that your risk is spread – so if one asset advice they provide.
class performs poorly, the value of your other investments
can make up for this. Diversification can also refer to OBJECTIVE ADVICE
diversifying across different types of investment management
(single- or multi-manager), across different geographical Our code of conduct for financial advisers is strict:
regions, and in different currencies. It’s also important to our advisers must be able to give clients objective
discuss which currency to use to monitor performance and advice about the products they buy so that they
the risks of monitoring performance in ZAR. can make informed decisions. It’s essential that
clients’ best interests are at the heart of everything
our advisers do so they must avoid or disclose any
HOW MUCH RISK YOU CAN AFFORD TO TAKE
conflicts of interests. At the core of everything is
Your investment strategy starts with understanding your treating clients fairly.
attitude to risk. Generally, the higher the potential risk of
an investment, the higher the potential return. The amount of
risk you can afford to take depends on your appetite towards
risk and your financial capacity to take risk. Different asset If you don’t have a financial adviser, you
classes like cash, bonds, property and equities have different can contact our call centre on 0860 67 5777.
levels of expected risk and return; cash has low levels
of expected risk and return, while equity has high levels
of expected risk and return.
COMPOUND INTEREST
Compound interest lets you earn returns on previously
reinvested money. You earn interest on interest.THE
CURRENCY
ENHANCER
INVEST BELOW THE PREVAILING EXCHANGE RATE
You can effectively invest below the prevailing exchange The additional investment value from the currency enhancer
rate, depending on your investment in qualifying grows at the same rate as your underlying investment,
investment choices. and will pay into your investment after 10 years.
When you convert your rands into USD, GBP or EUR,
The amount you receive will be affected if you:
this benefit lets you do the conversion at below the
prevailing exchange rate, which adds extra value to your Switch out of qualifying investment choices
investment. If you already have money or investments
Make a partial or full withdrawal from your Global Endowment
abroad that you would like to move it into our Global
The currency enhancer falls away if you make a full
Endowment, this benefit will still apply and increase your
withdrawal from your Global Endowment or on death
investment amount by the same amount as that received
of the last life assured before 10 years.
by investors investing in rands through the currency enhancer.
CONVERT A LOCAL ENDOWMENT TO A GLOBAL ONE FOR AN EVEN BETTER EXCHANGE RATE
If you are invested in the latest version of our local lump-sum Endowment (launched in February 2020), you can choose
to convert your investment to a Global Endowment on your boost payment date, instead of getting your local boost.
If you do this, you will get an even greater currency enhancement at the time of conversion.
Go back to Why the Discovery Global EndowmentESTATE
PLANNING
ADVANTAGES
Our Global Endowment forms part of your South African estate, and therefore avoids
the complications that could arise from having part of an estate located in another country.
The investment proceeds can be passed directly to any person or structure, as nominated
by you, in any currency or country.
This means that there is no requirement for an international will, and no need to worry about
probate, foreign estate duty, or executor fees on death, which can all add up to thousands
of US dollars.
Go backACCESS
TO YOUR
INVESTMENT
Endowments usually only allow for one withdrawal during the first five years of the investment.
However, our Global Endowment is structured in such a way that it allows multiple withdrawal
possibilities during the initial five-year period, and unlimited withdrawals thereafter.
The extra amount from the currency enhancer may be affected by withdrawals.
See the fact file for more details.
Go backA WIDE RANGE
OF INVESTMENT
CHOICES
We offer a range of Our investment range can be split into four groups:
investment options to Discovery Global Portfolios Global Share portfolios
meet your investment needs
Our risk-profiled portfolios offer you Portfolios of listed securities for
giving you access to a wide a global all-in-one investment solution, clients with higher risk tolerances
range of international comprising a broad spectrum of asset and greater asset values that seek
investment choices managed classes across many geographies. greater global equity exposure.
and advised by the world’s The portfolios are an active-passive Each of the three Discovery Share
blend of index trackers and external Portfolios have focused, specialised
leading asset managers.
asset managers that provide a diverse mandates, a strong track record,
holding across asset classes and and are advised by Goldman Sachs,
geographies – capturing opportunities a world-class asset manager.
across the globe. They are managed Available for selection on the Global
to achieve sustained, strong returns Endowment.
within a given risk appetite.
Available for selection on the Global Global Alpha Investment Choices
Endowment, Global Recurring Endowment
A curated list of investment choices
and Global Discovery Retirement Optimiser.
selected through a rigorous
screening and selection process
Global External Investment Choices
by a team of analyst from around
A wide range of investment choices the world with over 250 years of
from some of the top local and combined investment experience.
international managers from around The investment choices are
the world. catergorised by strength, ranging
Available for selection on the Global from high-conviction investment
Endowment and Global Flexible Plan. choices to satellite strategy
investment choices.
Available for selection on the Global
Endowment.
Go back to Why the Discovery Global Endowment Go back to Investment choicesGET UP TO 50%
BACK ON YEARLY
INTERNATIONAL
TRUST FEES
Setting up an international trust for your international assets has estate planning benefits
but may carry heavy costs. With our Global Endowment, you can get access to an international
trust at just GBP 200 per year, and get a refund of up to 50% of these fees after five years.
If you have a qualifying Global Endowment above USD 100 000 fully invested in qualifying
investment choices, you will get a refund of up to 50% of your trust fees after five years.
The criteria must be met for five consecutive years. A maximum of USD 650 will apply for
the Global Endowment refund. This maximum may be updated from time to time in line with
changes to trust fees and inflation. See the fact file for more details on this benefit.
Go backFLEXIBILITY
THROUGH
MULTIPLE
OWNERS
The Global Endowment may be owned by multiple natural owners, and beneficiaries
for ownership or proceeds can be nominated on the investment.
The endowment pays out a death benefit on the death of the last life assured.
Beneficiary nomination allows for the investment proceeds to pass to the beneficiaries
outside of the estate winding-up process and without the need for international probate.
Go backPROVIDER
DISCLAIMERS
BlackRock
iShares® and BlackRock® are registered trademarks of BlackRock, Inc. and its affiliates (“BlackRock”) and are
used under license. BlackRock has licensed certain trademarks and trade names of BlackRock to Discovery Life
Limited. The Licensee Product/Service is not sponsored, endorsed, sold, or promoted by BlackRock. BlackRock
makes no representations or warranties to the owners of the Licensee Product/Service or any member of the
public regarding the Licensee Product/Service. BlackRock has no obligation or liability in connection with the
operation, marketing, trading or sale of any product or service offered by Discovery Life Limited.
Goldman Sachs Asset Management
Goldman Sachs Asset Management (GSAM) are registered trademarks of Goldman Sachs International and
its affiliates (“Goldman Sachs”) and are used under license. GSAM has licensed certain trademarks and trade
names of GSAM to Discovery Life Limited. The Licensee Product/Service is not sponsored, endorsed, sold, or
promoted by GSAM. GSAM makes no representations or warranties to the owners of the Licensee Product/
Service or any member of the public regarding the Licensee Product/Service. GSAM has no obligation or
liability in connection with the operation, marketing, trading or sale of any product or service offered by
Discovery Life Limited.
Go back to investment choices Go back to at a glanceYou can also read
