{"id":411851,"date":"2020-06-30T07:10:58","date_gmt":"2020-06-30T05:10:58","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=411851"},"modified":"2020-06-30T07:10:58","modified_gmt":"2020-06-30T05:10:58","slug":"discoverys-world-first-exchange-rate-enhancer-explained","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/industry-news\/411851\/discoverys-world-first-exchange-rate-enhancer-explained\/","title":{"rendered":"Discovery\u2019s world-first exchange-rate enhancer explained"},"content":{"rendered":"<p><em>By Craig Sher, Discovery Invest\u2019s Head of Research and Development<\/em><\/p>\n<p>Discovery recently launched an enhanced version of their Discovery Global Endowment product, a competitive medium- to long-term global investment solution for South Africans seeking to invest globally.<\/p>\n<p>Increasing your global exposure offers three main benefits: geographical diversification, currency diversification, and access to new opportunities.<\/p>\n<ul>\n<li><a href=\"https:\/\/www.discovery.co.za\/investments\/offshore-investing?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_campaign=2020\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Click here to invest offshore with Discovery Invest.<\/strong><\/a><\/li>\n<\/ul>\n<p>These boil down to protecting your wealth by spreading your risk, that is, not limiting your portfolio to one currency, region, or limited sectors relative to the global market.<\/p>\n<p>Discovery is known for its innovation, strong behavioural-economics approach and shared-value business model \u2013 but not everyone understands how these play out in the context of investing.<\/p>\n<p>Craig Sher explains:<\/p>\n<h3 class=\"my-4\"><strong>What does \u2018shared value\u2019 mean? <\/strong><\/h3>\n<p>Discovery\u2019s business model is built on shared value, which means creating products that benefit clients and society, while also benefiting the provider of those products.<\/p>\n<p>In investing, we know that the earlier you start and the more you invest, the longer your money has to grow and the better off you become.<\/p>\n<p>Discovery also earns fees for a longer period, off larger investment balances. We channel the surplus profit these extra fees create back into rewards that encourage our clients to manage their money wisely.<\/p>\n<p>So, investors gain from smarter consumer behaviour, and Discovery benefits from a profitable business model. At the same time, this benefits society, as fewer people become dependent on others or state resources.<\/p>\n<h3 class=\"my-4\"><strong>How does the exchange-rate enhancer work, and what value does it offer? <\/strong><\/h3>\n<p>Simply put, our actuaries calculate the total profit that someone who invests in an offshore platform with Discovery will make for us over 10 years. We then take a portion of this profitability and channel it into an upfront exchange rate enhancement.<\/p>\n<p>For example, if the current exchange rate is R17.34 to the US dollar, you could buy in to our Global Endowment at around R16.13 to the dollar \u2013 you\u2019d get a discount on whatever the rate is at the time.<\/p>\n<p>So, no matter when you start an offshore investment with us, you always do so at a more competitive exchange rate than the prevailing market rate.<\/p>\n<h3 class=\"my-4\"><strong>Does this just apply to US dollars \u2013 and does any other company offer this innovation?<\/strong><\/h3>\n<p>None that we know of \u2013 that\u2019s why we call it a world-first. Discovery Invest offers an entry-point currency discount like this with US dollars, British pounds and euros.<\/p>\n<h3 class=\"my-4\"><strong>Does the currency-enhancing benefit come with extra administrative costs? <\/strong><\/h3>\n<p>It comes at no extra cost. What makes our model so powerful is that our fees are competitive with other local platforms \u2013 it\u2019s simply your commitment to the time frame that we bank on for the extra value.<\/p>\n<p>In fact, we found that this feature exceeds all the costs of administration over a 10-year period, which makes our offering one of the most cost-effective global endowments on the market today.<\/p>\n<p>Even without the exchange rate benefit, the platform is very competitive. The enhanced multi-contract structure of our Global Endowment offers full liquidity and flexibility; it\u2019s tax-efficient; and it allows for multiple owners and beneficiaries, which eases the intergenerational transfer of assets.<\/p>\n<p>We also have solutions in association with BlackRock and Goldman Sachs Asset Management \u2013 world leaders in asset management \u2013 and offer a combination of active asset managers and a passive blend of index trackers and share portfolios.<\/p>\n<p>This gives investors access to a full range in which to capture opportunities across the globe and achieve strong risk-adjusted returns within a given appetite. Plus, we\u2019ve made choosing funds very simple with our risk-profiled solutions.<\/p>\n<p>Add to all of this our intuitive, fully-digital platform, and we believe we\u2019ve brought all the best features of global investing to South African investors.<\/p>\n<p><a href=\"https:\/\/www.discovery.co.za\/investments\/offshore-investing?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_campaign=2020\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Click here to invest offshore with Discovery Invest.<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Discovery has launched an enhanced global investment solution that uses shared value to create the world\u2019s first exchange-rate enhancer \u2013 but what does that mean and how does it work? <\/p>\n","protected":false},"author":57,"featured_media":411853,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10459],"tags":[4883,15037],"class_list":["post-411851","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news","tag-discovery","tag-discovery-invest"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/411851","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=411851"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/411851\/revisions"}],"predecessor-version":[{"id":411857,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/411851\/revisions\/411857"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/411853"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=411851"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=411851"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=411851"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}