Discovery Invest announces new investment solution

Discovery Invest has partnered with Goldman Sachs Asset Management to introduce a new opportunity giving access to a range of thematic equity portfolios designed to give exposure to global megatrends.

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“In this changing world, trends are emerging that are set to transform investment markets globally. Four megatrends are widely recognised as macroeconomic forces that will fundamentally shape the world going forward. In so doing, they are set to have a profound influence on how we address some of society’s biggest challenges and they will create immense opportunity. Importantly, thematic investing can better position portfolios for the future,” says Kenny Rabson, CEO of Discovery Invest.

“The South African equity market, which represents less than 1% of the global equity market, does not offer much exposure to these global megatrends, so the new Discovery Global Megatrends Fund is an option for unlocking these opportunities and provide diversification in their portfolios,” Rabson adds.

The Discovery Global Megatrends Fund is available on both Discovery Invest’s local and global platforms. The Fund provides clients with unique exposure to these four global megatrends by allocating investments equally in four Goldman Sachs Asset Management equity portfolios, each aligned to one of these megatrends:

  • Technological advancement: Increased connectivity and data are enabling machine-driven insights that will transform how we operate. With younger generations’ increasing comfort in using technology, new business models and opportunities will emerge.
  • Environmental sustainability: The urgent threats of climate change and damage to the environment leave global economies with no choice but to turn to green alternatives for energy, food and transport.
  • Future of healthcare: Genomics and precision medicine are set to revolutionise healthcare. Continued innovation and economic efficiencies in gene mapping and sequencing are making personalised medical treatments with improved outcomes the new status quo.
  • New-age consumer: Millennials have become the world’s most powerful consumer force. With 2.3-billion people, the Millennials are the largest consumer cohort. As they enter their prime earning years and increase their spending, they will drive a new age of consumption.

Oliver Rahe, Head of Third-Party Distribution for the Middle East and Africa at Goldman Sachs Asset Management says: “We are delighted to work with Discovery to bring this innovative investment solution to clients in South Africa and beyond. We believe traditional benchmarks are flawed, meaning allocating capital tied to them can mean investing in yesterday’s winners rather than tomorrow’s.

“The Megatrend portfolio is designed to access returns that are not correlated to traditional global equity strategies that South African investors already own, and therefore may be complementary to clients’ existing allocations”.