Press release -
Discovery Invest announces new investment solution in partnership with Goldman Sachs Asset Management
Johannesburg, 21 June 2021 – Discovery Invest has partnered with Goldman Sachs Asset Management, to introduce a new investment opportunity giving access to a range of thematic equity portfolios designed to give exposure to global megatrends.
The Discovery Global Megatrends Fund is available on both Discovery Invest’s local and global platforms. The Fund provides clients with unique exposure to these four global megatrends by allocating investments equally in four Goldman Sachs Asset Management equity portfolios, each aligned to one of these megatrends.
- Technological advancement: Increased connectivity and data are enabling machine-driven insights that will transform how we operate. With younger generations’ increasing comfort in using technology, new business models and opportunities will emerge.
- Environmental sustainability: The urgent threats of climate change and damage to the environment leave global economies with no choice but to turn to green alternatives for energy, food and transport.
- Future of healthcare: Genomics and precision medicine are set to revolutionize healthcare. Continued innovation and economic efficiencies in gene mapping and sequencing are making personalized medical treatments with improved outcomes the new status-quo.
- New-age consumer: Millennials have become the world’s most powerful consumer force. With 2.3 billion people, the Millennials are the largest consumer cohort. As they enter their prime earning years and increase their spending, they will drive a new age of consumption.
Kenny Rabson, CEO of Discovery Invest, said: “In this changing world, trends are emerging that are set to transform investment markets globally. Four ‘megatrends’ in particular are widely recognized as macroeconomic forces that will fundamentally shape the world going forward. In so doing, they are set to have a profound influence on how we address some of society’s biggest challenges and they will create immense opportunity. Importantly, thematic investing can better position portfolios for the future.
“The South African equity market, which represents less than 1% of the global equity market, does not offer much exposure to these global megatrends, so the new Discovery Global Megatrends Fund is an option for unlocking these opportunities and provide diversification in their portfolios.”
Oliver Rahe, Head of Third Party Distribution for the Middle East and Africa at Goldman Sachs Asset Management, said: “We are delighted to work with Discovery to bring this innovative investment solution to clients in South Africa and beyond. We believe traditional benchmarks are flawed, meaning allocating capital tied to them can mean investing in yesterday’s winners rather than tomorrows. The Megatrend portfolio is designed access returns that are not correlated to traditional global equity strategies that South African investors already own, and therefore may be complementary to clients’ existing allocations”.
Notes to editors: By investing in either the ZAR or USD version of the Discovery Global Megatrends Fund, clients will not be investing directly in the Goldman Sachs Asset Management equity portfolios. The funds are investment portfolios underlying an investment linked insurance policy issued, or underwritten, by Discovery Life Limited, with the ZAR fund allocating to the underlying Goldman Sachs Asset Management equity portfolios and the USD fund being equity-linked notes which Discovery Life International holds to match each policy with allocations to the underlying Goldman Sachs Asset Management equity portfolios.
About Discovery Invest
Discovery Invest was founded in 2007, revolutionizing the South African investment space with its shared-value model. By changing the way clients invest and advisers do business, it enhanced outcomes for both. Discovery Invest’s retirement solutions provide boosts of up to 20% on retirement savings and income in retirement is increased by up to 50%. In 2020, Discovery Invest launched a groundbreaking global investment solution that creates the opportunity for investors to invest below the prevailing exchange rate, and utilize asset allocations provided by BlackRock and Goldman Sachs Asset Management, world leaders in asset management.
About Goldman Sachs Asset Management
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of March 31, 2021. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Follow us on LinkedIn.
Discovery Limited is a South African-founded financial services organisation that operates in the healthcare, life assurance, short-term insurance, savings and investment and wellness markets. Since inception in 1992, Discovery has been guided by a clear core purpose – to make people healthier and to enhance and protect their lives. This has manifested in its globally recognised Vitality Shared-Value insurance model, active in 27 markets with over 20 million members. The model is exported and scaled through the Global Vitality Network, an alliance of some of the largest insurers across key markets including AIA (Asia), Ping An (China), Generali (Europe), Sumitomo (Japan), John Hancock (US), Manulife (Canada) and Vitality Life & Health (UK, wholly owned). Discovery trades on the Johannesburg Securities Exchange as DSY.
Follow us on Twitter @Discovery_SA