Discovery Invest gives R20 billion back to investors

Discovery Invest has given R20 billion back to investors through its shared-value rewards since its inception in 2007.

This was revealed as part of an announcement of new investment products from Discovery for its local clients. 

It launched its Secure Capital Annuity, a new type of annuity that guarantees income for life and pays back capital when a person dies, as well as a new Bitcoin Fund. 

Discovery Invest now allows investors to structure this annuity for higher income within up to ten years of their retirement, assisting with early retirement costs such as travel and other experiences. 

This is in the form of a unique thirteenth cheque each year. The income then reduces as clients become more sedentary as they get older.

It increases again in later years to fund the increased medical expenses retirees usually face at this later stage.

Of the R20 billion given to investors, around R6.8 billion of those benefits have been paid out to clients.

Another R13.2 billion has accrued to clients who haven’t reached retirement or the end of their long-term investments, which will be paid out in the coming years. 

Discovery Invest launched its unique shared-value model to encourage positive investment behaviours among South Africans and help solve the country’s dismal retirement outcomes. 

Discovery Invest CEO Kenny Rabson said these shared value payouts and client data show that their model is succeeding in creating better retirement outcomes.

Clients who receive Discovery Invest’s unique savings rewards and boosts save, on average, more than three years longer than those who don’t. 

They make higher contributions to their investments and more ad-hoc deposits. 

They also withdraw lower amounts when they retire – a staggering 32% of the Discovery Invest Living Annuity book who receive these incentives draw-down less than 3% of their savings per year when they retire.

“This data proves that our interventions create the positive investor behaviour we need as a country,” said Rabson.

“We need to see that change in behaviour if we hope to reduce the proportion of people who end up relying on their families, communities, the state or debt for survival in South Africa.”

Discovery Invest has become the fastest-growing retail active unit trust asset manager in South Africa since its launch. It now boasts more than R145 billion in assets under management.