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DSY - Discovery Holdings Limited - News release from Discovery

Release Date: 23/10/2007 12:26
Code(s): DSY
Wrap Text

DSY - Discovery Holdings Limited - News release from Discovery DISCOVERY HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration number: 1999/007789/06) ISIN: ZAE000022331 Share Code: DSY NEWS RELEASE FROM DISCOVERY Discovery launches new investment business unit: Discovery Invest Investing with the benefit of hindsight Discovery today launched its much-anticipated investment offering, Discovery Invest to independent financial advisors around the country Adrian Gore, CEO of Discovery said: "With Discovery Invest, we believe we have built a comprehensive investment product range that offers investors the lowest costs in the market and a unique choice of performance guarantees." "Before entering this market, we looked at the obstacles investors face. Given the risks and complexity associated with investment products, choosing the right investment fund, the best asset manager and getting the timing right are all daunting dilemmas for the consumer." "We also analysed the impact that it would have on consumers` investments if they had the capability to invest with no fees, and we made cost-efficiency a clear objective." Gore says the global trend to consumerism has had a marked and positive effect on the South African investment industry. Consumers have benefited in recent years from lower prices, greater choice and the emergence of a new a breed of specialist asset managers. He believes it has, however, also lead to individuals bearing a greater deal of the risk associated with their investments. "We`ve seen a transfer of risk to the individual and a greater degree of product commoditisation. That`s where we believe we can add value." In addition, Gore says, people are living longer through advances in healthcare and therefore need to save more for retirement. These factors all contribute to a need for greater protection for investors and more efficient products. Discovery Invest introduces three fundamental changes to the way people can protect their savings: 1 By leveraging the tax efficiency of Discovery`s existing life assurance platform, a flexible range of investment wrappers allows investors to tailor their investment product according to their needs; 2 Investors have the choice to protect themselves against poor investment decisions at pay-out stage by having their returns adjusted automatically to what would have been the Right ChoiceTrade Mark; 3 Investors that integrate their investments with their existing Discovery Life Plan and their engagement in the Vitality wellness programme, could pay zero administration fees and asset management fees on Discovery`s funds. "Discovery has over the past fifteen years established its abilities in terms of product innovation, distribution and its unique capacity to integrate across its product ranges to unlock value and encourage wellness", said Gore. "Discovery Invest plays to all of those strengths to give investors an innovative, more efficient alternative to other offerings in a market where price is currently the major differentiator." As with Discovery`s other offerings, integration across the Discovery product range creates added value and indirectly links Discovery Invest to the group`s focus on encouraging wellness. For example, existing Discovery clients who integrate the Endowment wrapper with their Discovery LIFE PLAN and their Vitality membership can receive discounts of up to 100% on Discovery Invest asset management and administration fees. Clients` Vitality status, a measure of their overall engagement in their own wellness, plays a role in the extent of the discount on their investment fees. Discovery Invest funds offer four different types of funds: 1 Discovery Invest Funds, incorporating single manager funds (through a joint venture with Investec Asset Management) and multimanager funds catering for various risk profiles; 2 Dynamically protected funds, which include the Right ChoiceTrade Mark Investments, offering the benefit of hindsight; Escalator Funds, which offer unlimited upside with downside protection; and the Dynamic Asset Optimiser, offering protection against the asset allocation risks associated with investment choice; 3 Special Purpose Funds, including the Target Retirement Date Funds, with dynamic asset allocation adjustments as investors approach retirement and risk appetite decreases. The two Alpha Funds (managed by Deutsche Bank and offered for the first time in South Africa), offer quantitative, synthetic equity indices and qualitative dynamic protection solutions; 4 Funds managed by external asset managers. "We wanted to ensure that, when it comes to meeting their investment objectives, our clients experience inevitable success," said Herschel Mayers, CEO of Discovery Invest. Mayers added the company was proud to partner with Deutsche Bank, Investec Asset Management and Investment Solutions in those areas where these leading asset managers` specialised skills add to Discovery`s own competencies, resulting in a best-of-breed offering. "Our products will enable investors to avoid making the wrong investment decision by minimising the risk of an inappropriate choice of investment approach, geography, asset class or asset manager," said Mayers. Of particular note, is the Right ChoiceTrade Mark range, which enhances the return on an investor`s investment decision. Investors receive at least 75% of any out-performance above the Discovery Equity Fund that would have been achieved from an alternative investment decision. This benefit, in effect, gives investors the benefit of making their investment choices with hindsight. The Global Equity Protector fund offers similar protection against geographic underperformance, while Escalator funds will offer unlimited upside with a stop- loss feature, protecting against downside. "By shifting assets between equities and cash, investors will be sheltered against downturns in the market," said Mayers. "Individuals` investments will never drop lower than to 80% of the highest value the Escalator Fund ever reaches". "Not only are we protecting clients` hard-earned nest eggs, but we are also adding value to their savings by in some cases taking taxes, administration fees and asset manager fees out of the equation. If, for example, a client has R100 000 to invest, already has a Discovery Life policy and is actively engaged in the Vitality wellness programme, they could add up to R25 000 to their investment over five years," summarised Mayers. "We believe no other player in the market so far has offered consumers the advantages of a mix like this. Discovery Invest is specifically designed to ease the impact of volatility and risk associated with the markets, unlocking value, ensuring efficiency and giving investors` greater peace of mind," concluded Gore. -Ends- Media enquiries Issued for FD Beachhead Media & Investor Discovery Invest Relations Grant Henry/ Louise Adrian Gore Brugman/Sonja Malan /Chloe Webb CEO of Discovery
Herschel Mayers CEO of Discovery Invest 011 214 2400 011 529 2888 23 October 2007 Discovery information The information in Discovery`s press releases is specifically meant for journalists and consumers should not use it to make financial decisions. Detailed information about Discovery`s products is available at www.discovery.co.za Discovery is an authorised financial services provider. Discovery Discovery operates in healthcare cover markets in South Africa, the US and the UK, as well as in the UK and South African life insurance market, and strives to develop financial services products that clients need and want. The company`s core purpose is to make people healthier, and to enhance and protect their lives. Discovery Health As South Africa`s largest health care funder and medical scheme administrator, Discovery Health covers over two million lives and administers twelve medical schemes. This includes the Discovery Health Medical Scheme, the country`s largest open medical scheme and the only one to enjoy an AA rating for its claim paying ability, the highest possible credit rating from international rating agency, Global Credit Ratings. Discovery Health pioneered consumer-driven healthcare in South Africa with the introduction of innovations like the Medical Savings Account and its wellness programme, Vitality. Discovery Health was voted consumers` top medical aid brand in the Sunday Times Markinor 2007 Top Brands survey. Discovery Life Discovery Life is South Africa`s fastest growing major life assurer, having captured around 40% of the new business in the independent broker risk market since its inception in 2000. It was the first South African insurer to separate risk from investment, leading a change in the environment that is projected to save consumers more than R5 billion by 2010. Recently, Discovery Life Discovery Life received the SAFSIA 2007 award for the "Long-term insurer of the year in risk products" category. Destiny Health Destiny Health is Discovery`s fully-owned subsidiary in the US, and combined with Discovery Health and PruHealth, it is the largest provider of consumer- directed health care in the world. Destiny Health operates in the mid-West, mid-Atlantic, North-East and South of the United States. Both Destiny Health and PruHealth`s technology and call centre infrastructure are managed out of Discovery`s Johannesburg head office. PruProtection PruProtection is the newly expanded UK-based 50/50 joint venture between Discovery and Prudential plc. It comprises PruHealth, the private medical insurer and PruProtect, a new life assurance company targeting innovation in the UK risk protection market. PruHealth was launched into the UK market in October 2004, as a joint venture between Discovery and UK insurer, Prudential, in response to a growing need for consumer-directed private medical insurance products. Since then, PruHealth has grown to cover over 130 000 lives. PruHealth was awarded the Health Insurance Company of the Year Award and the Individual PMI Provider of the Year Award at the Health Insurance Awards in 2006. PruHealth was chosen, among other stakeholders, to champion the Department of Health`s small change, big difference campaign to encourage Britons to improve their health by making small lifestyle changes. PruProtect launched operations on 25 September 2005. Discovery Vitality Discovery Vitality is a science-based wellness programme that underpins each of the Discovery businesses and is an international brand in its own right. Vitality centres on encouraging healthy behaviours to reduce long-term healthcare costs - an independent actuarial study by US firm, Milliman, shows that Vitality members claim 40% less than their non-Vitality counterparts. It is accredited by the Sports Science Institute of South Africa and more than 1,3 million people currently belong to Vitality. Vitality rewards members for improving their health by giving them access to a range of health and lifestyle benefits, and its value offering is further enhanced by the DiscoveryCard that gives members real cash back if they shop at one of the retail partner stores. Vitality recently launched the International Travel Benefit, which gives members discounted airfares to 15 international destinations in the UK and Europe. Date: 23/10/2007 12:26:40 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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