GLOBAL ENDOWMENT

CONTENTS

Read the Global Endowment Fact File relevant to your investment

AT A GLANCE

The Global Endowment provides you with a simple solution to hold international assets. It allows you to invest below the prevailing exchange rate and offers you maximum efficiency through the most optimal tax and estate structuring, investment liquidity and cost-effective international trust options.

INVESTMENT TYPE

Guernsey-linked life plan with easy tax administration in USD.

INVESTMENT TERM

Medium to long term

MINIMUM INVESTMENT AMOUNT

USD 25 000;

EUR 22 000;

GBP 20 000; or

ZAR 375 000

You could qualify for an enhanced exchange rate depending on your investment choices and term of investment.

INVEST BELOW THE PREVAILING EXCHANGE RATE

You can nominate multiple owners and beneficiaries. You can also nominate a sub-trust in the Discovery Life Purpose Trust as a beneficiary for proceeds.

FLEXIBILITY AND TRUST FEATURES

Each plan has 100 contracts. You can make multiple withdrawals, subject to regulatory restrictions.

ACCESS TO YOUR INVESTMENT

Our wide range of investment choices allows you to structure a global investment portfolio that suits your needs. 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.

ACCESS TO A WIDE RANGE OF INVESTMENT CHOICES

Hassle-free direct international investing through the use of smart verification.

SIMPLE DIGITAL ONBOARDING

Read the Global Endowment Fact File relevant to your investment

DECIDING HOW TO INVEST

MINIMUM INVESTMENT AMOUNTThe minimum investment amount per currency is as follows:

USD 25 000

EUR 22 000

GBP 20 000

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.

You can make your contribution in US dollars (USD), British pounds (GBP) euros (EUR) or rands (ZAR).

Read the Global Endowment Fact File relevant to your investment

WHY THE DISCOVERY GLOBAL ENDOWMENT?

INVEST BELOW THE PREVAILING EXCHANGE RATE

When you convert your rands into another currency, the currency enhancer is designed to let you effectively do the conversion at a better exchange rate than what is available in the market.

Your investment forms part of your South African estate, and therefore it avoids the complications which could arise from having part of an estate located in another country. You can also get access to an international trust at a cost-effective price, and get a refund of up to 50% of the annual trust fee after five years.

ESTATE PLANNING AND INTERNATIONAL TRUST ADVANTAGES

TAX EFFICIENCY

We take care of the tax administration (calculation, collection and payment to SARS) on your behalf, which makes the tax process much simpler. Taxation on endowments may also result in lower tax for investors with higher marginal tax rates.

ACCESS TO YOUR INVESTMENT

Each plan has 100 contracts, which allows multiple withdrawal possibilities during the initial five-year period, and unlimited withdrawals thereafter.

You can make your contribution in US dollars (USD), 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.

MULTIPLE CURRENCIES AND A WIDE RANGE OF INVESTMENT CHOICES

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 receiving your local boost. If you do this, you will get an even greater currency enhancement at the time of conversion.

The Global Endowment may be owned by multiple owners and multiple beneficiaries and types of beneficiaries can be nominated, which allows for the investment proceeds to pass to the beneficiaries without the need for international probate.

FLEXIBILITY THROUGH MULTIPLE OWNERS AND BENEFICIARIES

Read the Global Endowment Fact File relevant to your investment

INVESTMENT CHOICESOur 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 the Global Endowment Fact File relevant to your investment

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

SMART VERIFICATION WITH DISCOVERY

Issue case

02 03 04

Application form and source of funds

Certified proof of residence

Certified ID documents

Certified banking details

Assessment of 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.

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Read the Global Endowment Fact File relevant to your investment

There are certain fees that apply to your investment

FEES ON YOUR INVESTMENT

FEES TO THE INVESTMENT MANAGERS

Investment managers may charge initial and ongoing fees. These fees depend on the investment choices you choose.

FEES TO YOUR FINANCIAL ADVISER

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.

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.

Refer to the Fact File for more information about all fees.

Read the Global Endowment Fact File relevant to your investment

OTHER GLOBAL INVESTMENT PLANS

We offer three other global investments to suit your investment needs.

Global Recurring Endowment

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 tax-efficient structures.

Global Flexible Investment

The Global Flexible Investment is a lump-sum investment 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.

OTHER GLOBAL INVESTMENT OPTIONS:

Visit www.discovery.co.za for more information on our other global investment plans.

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.

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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).

OBJECTIVE ADVICE

Our code of conduct for financial advisers is strict: our advisers must be able to give clients objective advice about the products they buy so that they 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 conflicts of interests. At the core of everything is treating clients fairly.

LICENSED TO SELL CERTAIN PRODUCTS

We only allow financial advisers who are registered with the Financial Sector Conduct Authority (FSCA) and have professional qualifications (passing regulatory examinations and undergoing training), to sell you specific financial products. They are required to have extensive knowledge of the product they are recommending to you, and they must be professional and skilled in the financial advice they provide.

KNOWLEDGEABLE ABOUT MANAGING MONEY

Financial advisers are qualified in financial planning and can help you decide on – and keep track of – your investment goals, savings strategies and retirement options.

ADVANTAGES OF USING A FINANCIAL ADVISER

SPEAK TO YOUR FINANCIAL ADVISER ABOUT THE FOLLOWING:

WHAT ‘INVESTING GLOBALLY’ MEANS FOR YOUR OVERALL INVESTMENT PORTFOLIO

Introducing direct international investments to your overall investment portfolio from a South African perspective has many implications that need to be carefully considered.

ESTATE PLANNING AND TAX CONSIDERATIONS

Planning for the next generation is an important consideration when investing globally. It is also important to consider tax as it could erode your investment returns if not managed properly.

THE UNPREDICTABLE NATURE OF MARKETS

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 cause the value of underlying investments to go up or down.

DIVERSIFICATION

It’s important to diversify your investments across different asset classes, such as equities (shares), bonds, property and cash. This will ensure that your risk is spread – so if one asset class performs poorly, the value of your other investments can make up for this. Diversification can also refer to diversifying across different types of investment management (single- or multi-manager), across different geographical regions, and in different currencies. It’s also important to discuss which currency to use to monitor performance and the risks of monitoring performance in ZAR.

HOW MUCH RISK YOU CAN AFFORD TO TAKE

Your investment strategy starts with understanding your 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 classes like cash, bonds, property and equities have different 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.

WHAT TO DISCUSS WITH YOUR FINANCIAL ADVISER

Your trusted financial adviser is here to assist you on your international investment journey

If you don’t have a financial adviser, you can contact our call centre on 0860 67 5777.

INVEST BELOW THE PREVAILING EXCHANGE RATE

You can effectively invest below the prevailing exchange rate, depending on your investment in qualifying investment choices.

When you convert your rands into USD, GBP or EUR, this benefit lets you do the conversion at below the prevailing exchange rate, which adds extra value to your investment. If you already have money or investments abroad that you would like to move it into our Global Endowment, this benefit will still apply and increase your investment amount by the same amount as that received by investors investing in rands through the currency enhancer.

The additional investment value from the currency enhancer grows at the same rate as your underlying investment, and will pay into your investment after 10 years.

The amount you receive will be affected if you:

Switch out of qualifying investment choices

Make a partial or full withdrawal from your Global Endowment

The currency enhancer falls away if you make a full withdrawal from your Global Endowment or on death of the last life assured before 10 years.

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.

THE CURRENCY ENHANCER

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.

ESTATE PLANNING ADVANTAGES

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.

ACCESS TO YOUR INVESTMENT

We offer a range of investment options to meet your investment needs giving you access to a wide range of international investment choices managed and advised by the world’s leading asset managers.

Our investment range can be split into four groups:

Discovery Global Portfolios

Our risk-profiled portfolios offer you a global all-in-one investment solution, comprising a broad spectrum of asset classes across many geographies. The portfolios are an active-passive blend of index trackers and external asset managers that provide a diverse holding across asset classes and geographies – capturing opportunities across the globe. They are managed to achieve sustained, strong returns within a given risk appetite.

Available for selection on the Global Endowment, Global Recurring Endowment and Global Discovery Retirement Optimiser.

Global External Investment Choices

A wide range of investment choices from some of the top local and international managers from around the world.

Available for selection on the Global Endowment and Global Flexible Plan.

Global Share portfolios

Portfolios of listed securities for clients with higher risk tolerances and greater asset values that seek greater global equity exposure. Each of the three Discovery Share Portfolios have focused, specialised mandates, a strong track record, and are advised by Goldman Sachs, a world-class asset manager.

Available for selection on the Global Endowment.

Global Alpha Investment Choices

A curated list of investment choices selected through a rigorous screening and selection process by a team of analyst from around the world with over 250 years of combined investment experience. The investment choices are catergorised by strength, ranging from high-conviction investment choices to satellite strategy investment choices.

Available for selection on the Global Endowment.

A WIDE RANGE OF INVESTMENT CHOICES

GET 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.

FLEXIBILITY 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.

PROVIDER 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.