Discovery Invest Returns R20 Billion to Investors Through Shared-Value Rewards

Since its inception in 2007, Discovery Invest has returned R20 billion to investors through its innovative shared-value rewards program.

This announcement coincides with the launch of new investment products for local clients. Among these is the Secure Capital Annuity, which guarantees lifelong income and returns capital upon the investor’s death, and a new Bitcoin Fund.

Discovery Invest now offers a structured annuity that provides higher income within the first ten years of retirement, helping cover early retirement costs like travel and other experiences. This feature includes a unique thirteenth cheque each year, with income adjustments to accommodate changes in lifestyle and increased medical expenses in later years.

Out of the R20 billion given back to investors, R6.8 billion has already been paid out. The remaining R13.2 billion has accrued to clients who have not yet retired or reached the end of their long-term investments, and will be paid out in the coming years.

Discovery Invest’s shared-value model was launched to promote positive investment behaviours and improve South Africa’s retirement outcomes. According to CEO Kenny Rabson, the pay-outs and client data demonstrate the model’s success in creating better retirement results. Clients who receive Discovery Invest’s savings rewards and boosts tend to save for over three years longer, contribute more to their investments, and make more ad-hoc deposits compared to those who don’t. Additionally, 32% of clients with the Discovery Invest Living Annuity draw down less than 3% of their savings annually upon retirement.

“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.”

Since its launch, Discovery Invest has become the fastest-growing retail active unit trust asset manager in South Africa, now managing over R145 billion in assets.