Business updates

25 April

Annual reviews and force debit requests on Adviser 360

We have been enhancing our digital platforms to improve the Discovery Invest experience for clients and financial advisers.

We are now introducing our new functionality for Annuity reviews, Section 14 commission reviews and force debit requests on Adviser 360.

This functionality is now available for the following processes:

• Annual Annuity reviews on Living Annuities.
• Annual Section 14 commission reviews on Core Lump-sum Retirement Annuities.
• Request of force debits for rejected debits on recurring contribution products.

We've introduced the following features to make these changes easier:

• Advisers can now capture these requests digitally.
• The client can review and consent digitally.
• The process is initiated and finalised by both client and adviser.
• Improved turnaround time.

Watch the Generic Servicing - Reviews video and Generic Servicing - Force Debits video to see how to submit these changes. Look out for more information about future enhancements to our online functionality.

Remember, financial advisers and clients must always have a complete view of their Discovery Invest portfolios through the Discovery app or on our website. They can see everything from reward and fund breakdowns to contribution changes.

Launching digital switches

Over the past few months, we have enhanced our digital platforms to improve the Discovery Invest experience for you and your clients. In 2023, we introduced a new, simpler and faster way to process client withdrawals from Flexible Investments and Endowments, as well as new features to simplify contribution changes.

We now introduce our latest functionality: digital switches. This allows you and your clients to capture and approve switches digitally. No more manual instructions! It is now as easy as clicking a button.

Some additional benefits of digital switches:

• Clients can adjust their recurring contribution fund selections and allocations while switching.
• Clients can review and consent to switching their portfolios digitally.
• Quicker turnaround times.
• You, the adviser, can now capture the mandatory compliance digitally.
• Straight through processing.

Digital switches are now available for the following products:

• Discovery Retirement Optimisers
• Endowments - recurring
• Retirement Plans
• Flexible Plans

Watch this video to see how to submit digital switches. Look out for future enhancements to our digital functionality.

18 April

Availability of quarterly investment statements

Our quarterly investment statements for 1 January to 31 March 2024 are now available in the Secure document vault. We have sent emails, SMSs and push notifications to clients to let them know that the statements are available. Clients can access their statements by logging in to the Discovery app and our secure website.

Clients can access their investment statements in the following ways:

• They can log in to our secure website, www.discovery.co.za. Once logged in, they must select the INVESTMENTS tab at the top of the screen, and then select Quarterly investment statement
• They can download the Discovery app on their smart device and log in using the same details they use to log in to our secure website. Once they're logged in, they must select INVESTMENTS, choose the investment, select Secure document vault and then select Statements.

11 April

Regulation 28 letters of non-compliance

Every quarter we advise clients, whose investments are not compliant with Regulation 28 at a specific point in time, on the required action. We will distribute notifications from 15 April 2024 to clients who were not compliant at the end of December 2023. The notifications direct clients and their financial advisers to access their letters in our Discovery app and secure website.

View a copy of the letter.

See how you and your clients can access communication in the Secure Inbox and Secure document vault.

4 April

2023/2024 Tax certificates

We are busy working on Discovery Invest tax certificates for local products and Statement of transactions to assist with Capital Gains Tax reporting for international investments for the 2023/2024 tax year. We will advise you as soon as the certificates are available on the Discovery app and our secure website.

28 March

Reminder: Discovery Miles Integrator transfers will happen soon

Through the Discovery Miles Integrator, we reward clients for taking responsibility for their financial future. It provides them with a boost of up to 300% to their Discovery Miles depending on their Vitality status and whether they are on Discovery Purple plans or not.

We remind you that on 4 April 2024, the following will apply to clients who chose to transfer their Discovery Miles into their Discovery Miles Integrator:

• We will automatically transfer 100% of their Discovery Miles balance into their Discovery Miles Integrator on their investment.
• We will transfer up to 1 Discovery Mile for every R10 of their lump sum Retirement or Preserver Plan fund balance

See how clients and financial advisers can access communication in the Secure inbox and Secure document vault.

Successful ballot for the Absa with Sanlam unit trust portfolios amalgamation

We received confirmation from Absa Fund Managers about the successful ballot for merging the following funds:

• Absa multi-managed portfolios with Absa Sanlam co-named portfolios
• Absa global feeder fund with Sanlam Schroder global feeder fund
• Absa single-managed portfolios with SIM single-managed portfolios

The merger is effective 22 March 2024. We are, therefore, immediately capping the Absa Balanced Fund Class C1 and Absa Multi Managed Preserver Fund of Funds Class C to new business and switches.

14 March

SARS enhances tax directives from April 2024

The South African Revenue Service (SARS) notified us of a tax percentage change to Annuity Incomes for the March 2024 to February 2025 tax year. Following this, we will distribute letters to the affected clients from 18 March 2024. Clients can view their letters by either opening the encrypted attachment or accessing them in the Secure Inbox and Secure document vault, through our Discovery app and secure website

View the attached copy of the letter.

See how you and your clients can access their communication in the Secure Inbox and Secure document vault.

7 March

Discovery Miles Integrator transfers will happen soon

The Discovery Miles Integrator rewards clients for taking responsibility for their financial future. It provides them with a boost of up to 300% to their Discovery Miles depending on their Vitality status and whether they are on Discovery Purple plans or not.

On 4 April 2024, the following will apply to clients who had chosen to transfer their Discovery Miles into their Discovery Miles Integrator:

• We will automatically transfer 100% of their Discovery Miles balance into their Discovery Miles Integrator on their investment.
• We will transfer up to 1 Discovery Mile for every R10 of their lump-sum Retirement or Preserver Plan fund balance.

We will distribute the letters to affected clients and their financial advisers from 7 March 2024. View a copy of the letter.

Any clients who would like to stop the transfer will need to send us a signed instruction communicating their decision at invest_servicing_support@discovery.co.za before 28 March 2024.

See how you and your clients can access communication in the Secure inbox and Secure document vault.

OIG and BBA model portfolio name change

Optimum Investment Group notified us that they are renaming their OIG and BBA model portfolios with immediate effect. The name changes apply to the following model portfolios:

Current model portfolio	New model portfolio
OIG Low Equity Retirement Option	OIG Low Equity Return Option
OIG Medium Equity Retirement Option	OIG Medium Equity Return Option
OIG High Equity Retirement Option	OIG High Equity Return Option
BBA Low Equity Retirement Option	BBA Low Equity Return Option
BBA Medium Equity Retirement Option	BBA Medium Equity Return Option
BBA High Equity Retirement Option	BBA High Equity Return Option

There are no other changes to the portfolios or to the current tax treatment of the portfolios.

29 February

Change of investment manager for VAM Global Management Company SA

Allfunds notified us that VAM Global Management Company changed its investment manager. The new investment manager is Limestone Platform AS.

No other changes are being made to the portfolios or to the current tax treatment of the portfolios.

We've updated our application forms

We've made some changes to our application forms. The updated forms will be available to you on Adviser 360 from 1 March 2024.

We understand that some clients will still use the current forms. Therefore, we will accept the current versions of the application forms until 15 March 2024. Forms submitted before this date are not impacted by these changes.

The following forms will have updated versions from 1 March 2024:

• Additional investment form
• All local and international application forms

The following products are available on Adviser 360:

• International products: Global Endowment, Global Flexible Investment
• Discretionary products (local): Endowment, Flexible Investment, Tax free Flexible Investment, Discovery Invest Guaranteed (Growth and Income), PrimeFlex
• Retirement products: Retirement Annuity, Preservation (provident and pension), Annuity (living and fixed)

A reminder of what Adviser 360 offers you

• An intuitive application journey and an integrated digital client acceptance process
• Digital contribution changes, including a new enhanced digital compliance journey, digital client acceptance, straight through processing and a quicker turnaround time.
• Digital claims for Flexible Investments and Endowments, providing digital client acceptance and more efficient processing.

Adviser 360 training and support channels

We have prepared a comprehensive user guide and training material for financial advisers. This is available on Adviser 360 and you can access it by simply logging in and selecting the hamburger icon (three horizontal lines) on the top left hand side of the screen. Select Marketing support > Adviser 360 Info Hub.

You can send any support queries to InvestSSPSupport@discovery.co.za.

15 February

Amalgamation of AF Investments Stable FoF and the AF Investments Conserver Managed Unit Trust

We received confirmation from Alexander Forbes Investments Limited about the successful ballot to merge the AF Investments Stable FoF and the AF Investments Conserver Managed Unit Trust.

The merger came into effect on 9 February 2024. We're therefore closing the AF Investments Stable Fund of Funds to new business and switches, with immediate effect.

 

8 February

The annual trustee report and pre-retirement letters are now available

The annual trustee report and pre-retirement letters are available on our secure website. These are required in terms of the Default Regulations to the Pension Funds Act for all members electing to retire from the Fund in 2024.

The annual trustee report includes information about the retirement funds, its trustees and the activities of the Fund over the past financial year. We have also included information on the two-pot retirement system. We are working to ensure that we are ready for the new two-pot system, which is proposed to be implemented on 1 September 2024. We will continue to keep you updated on any changes and provide guidance throughout the process.

The pre-retirement notice includes information on the options available to members who are electing to retire from the Funds' tax on their benefit and purchasing an annuity.

Members of the Fund received SMS notifications from 2 February 2024 confirming the availability of the report and the pre-retirement notice on our secure website.

Clients can log in to our secure website and select INVESTMENTS at the top of the screen. Then select Your investment portfolio. The communication is available under the Link and Tools menu on the right hand side of the screen. Select the Trustee Report or the Pre-retirement letter.

Financial advisers may also access these online by logging in to our secure website and selecting the hamburger icon on the top left hand side of the screen. Select Your clients then Investments (OLD) or Investments (NEW). Select TOOLS on the left hand side menu. The communication is available under About Funds, select the Trustee Report or the Pre-retirement letter.

1 February

Withdrawal illustrations update

The withdrawal illustration function allows financial advisers and clients to generate a variety of withdrawal scenarios for full and partial withdrawals, depending on the product rules. This shows the possible impacts of a withdrawal on the client's assets and unique benefits.

From 12 February 2024 we will require withdrawal illustrations for partial and full withdrawals on the following products:

• Retirement Annuities: This will now include policies where the client is older than 55 but is retiring before their chosen retirement age.
• Flexible Investments: Essential, Classic, Core and PrimeFlex
• Pension and provident (prior to retirement)
• Guaranteed Income and Growth Plans
• Endowments (DRO endowments included).

Clients and financial advisers can request withdrawal illustrations in the following ways:

• Clients can log in to our secure website and select the INVESTMENTS tab at the top of the screen. Select Your Investment Portfolio then scroll down to Illustrations. Under Illustration type select Withdrawal Illustrations.
• Financial advisers can log in to Adviser 360 and select the hamburger icon on the top left hand side of the screen. Tap on Your clients then select Investments (NEW) and choose Withdrawals.

Contact us

For more information, please contact us on 0860 33 33 62. You can also email us at invest_payments_support@discovery.co.za

Tax season submission and cut-off dates

As the 2024 tax year draws to a close, you need to ensure that your clients' contributions are counted for this tax year. The following are the submission and cut-off dates for the 2023/2024 tax season:

• Ensure that new Discovery Retirement Optimiser and Discovery Retirement Annuity policies are active on or before 29 February 2024 to enable contributions in that tax year. Discovery Retirement Optimiser policies can start at any time during the month.
• Make sure that all Tax-free Flexible Investment Plan applications and deposits reach us and are active on or before 29 February 2024. It is important to note the limits that apply for each policy every year.
• All additional investment applications (ad hoc applications) for Tax-free Investment Plans and Discovery Retirement Annuities must be processed on or before 29 February 2024.
• All electronic funds transfer (EFT) deposits must reflect in our bank account by 29 February 2024.
• Ensure that all debit orders are collected on or before 29 February 2024.

Group Retirement Annuity policies

Please ensure that the funds are paid and the billing schedules are submitted for cash policies before the deadline of 29 February 2024.

25 January

Goldman Sachs Fund class merger

Allfunds notified us that the existing Goldman Sachs Europe Real Estate Equity P (EUR) Acc Fund has merged with a new class. The new fund name is Goldman Sachs Global Real Estate Equity Former NN P (EUR) Acc. The merger is effective immediately.

There are no other changes to the fund or to the current tax treatment of the investments.

Stanlib Balanced fund amalgamation with Stanlib Multi-Asset Growth Fund

Stanlib notified us that they are in the process of amalgamating the Stanlib Balanced Fund with the Stanlib Multi-Asset Growth Fund. We are, therefore, closing the Stanlib Balanced Fund Class C3 to new business and switches with immediate effect.

18 January

Quarterly investment statements available

Our quarterly investment statements for 1 October to 31 December 2023 are now available in the Secure document vault. We have sent emails, SMSs and push notifications to clients to let them know that the statements are available. Clients can access their statements by logging in to the Discovery app and our secure website.

Clients can access their investment statements in the following ways. They can:

• Log in to our secure website, www.discovery.co.za. Once logged in, they must select the INVESTMENTS tab at the top of the screen, and then select Quarterly investment statement.
• Download the Discovery app on their smart device and log in using the same details they use to log in to our secure website. Once logged in, they must select INVESTMENTS, choose the investment, select Secure document vault and then select Statements.

Regulation 28 non compliant letters

Every quarter we advise clients whose investments are not compliant with Regulation 28 at a specific point in time, on the required action. We distributed notifications from 16 January 2024 to clients who were not compliant at the end of September 2023. The notifications direct clients and their financial advisers to access their letters in our Discovery app and secure website.

View a copy of the letter.

See how you and your clients can access communication in the Secure inbox and Secure document vault.

14 December

Contact centre lines on 22 and 29 December 2023

The Discovery Invest contact centre lines will close earlier on 22 and 29 December 2023. The lines will be available from 08:00 to 12:00 on these dates. You may still email us or send transactions as usual because business will resume as normal on the business days following these dates.

The following lines will be affected:

• Discovery Invest: 0860 67 57 77
• Discovery Invest Premium Platinum: 0860 11 03 23
• Discovery Invest Service teams: 0860 33 33 62

Emperor IP Global Equity Fund name change

IP Management Company notified us of the renaming of their fund with immediate effect. The name change applies to the following fund:

Current fund	New fund
Emperor IP Global Equity Fund	Easy IP Global Equity Fund

There are no other changes to the portfolios or to the current tax treatment of the portfolios.

07 December

New features added to Adviser 360

Adviser 360 is a tool that helps financial advisers to onboard clients and view their financial portfolios in one place. We are constantly improving the Adviser 360 experience, and we're excited to introduce the third phase of updates.

From 11 December 2023 the local Proposal report will be available on Adviser 360. The proposal report provides the adviser details of the selected portfolio's performance and asset allocations. As part of the quote report output, the portfolio performance and fund fact sheets are included in a consolidated document.

The Digital acceptance tracking feature allows the adviser to conveniently monitor the progress of the digital acceptance process and access a list of requests that are pending the adviser's approval. Additionally, the adviser can keep track of requests that are awaiting the client's approval. Note that these options can only be tracked if the quote and application were recorded by the adviser or their assistant. Furthermore, the dashboard provides a document history that encompasses all the past Accepted, Declined, Expired, and Cancelled requests.

The Quote and Application dashboard has undergone changes to incorporate new features that enable the adviser to conveniently navigate to specific options with a single click. The available options for Quote and Application are contingent upon the status of the Quote or Application.

• For the Quote: The adviser can edit, cancel, and copy the quote. Additionally, a documents link is available where a comprehensive list of digitally generated and uploaded documents is displayed.
• On the Application side: The adviser can edit the application, copy the quote, access the documents link, and use the Digital Acceptance link. The Digital Acceptance link redirects the user to the Digital Tracking Dashboard. There is also an Outstanding Requirements link that redirects the adviser to the Invest Broker Portal, where all outstanding requirements are displayed. Through this portal, the user can upload necessary documents. Additionally, the enhancement now includes a link to Log a Query, which redirects the user to a query capture page where they can enter and submit a query. This query will be linked to the workflow and forwarded to the back-office.

Stay tuned for more exciting updates in 2024 on how to make the most of Adviser 360 and its new and exciting capabilities.

30 November

Global boost values on investment statements

For more than a year, we have been sending communication to clients about the update to their investment and limited boost values. The communication was in the form of quarterly letters; and was sent directly to clients because the boost value was not displaying on the investment statement.

We have now made the boost value available on the investment statements. Clients can see the values on the upcoming quarterly investment statements for 1 October to 31 December 2023. The statements will be available from 15 January 2024 in the Secure document vault.

Two-pot retirement system - date change

On 1 November 2023, Minister of Finance Enoch Godongwana delivered the 2023 medium-term budget speech (MTBS). The Minister tabled the Revenue Laws Bill No 39 of 2023 (RLB) which introduced the new proposed implementation date of March 2025. The retirement fund industry welcomed the new proposed implementation date of 1 March 2025 and was comfortable that it would be ready to service the anticipated bulk savings withdrawal requests from retirement fund members.

On 21 November 2023, the draft RLB was tabled before Parliament's Standing Committee on Finance ('SCoF') for 'clause by clause' approval. The retirement fund industry was dealt a huge blow when SCoF rejected National Treasury's proposal to change the implementation date from 1 March 2024 to 1 March 2025. It was uniformly adopted at the SCoF hearing in Parliament that the implementation date for the two-pot retirement regime will be 1 March 2024. This means that 1 March 2024 has become the more likely proposed effective date. However, we still await the final parliamentary approval and final legislation which is expected before the end of 2023 or in January 2024.

Following the meeting of 21 November, SCoF will write to the Minister of Finance to say they want the implementation date to be 1 March 2024. The Minister of Finance has 14 days to respond. Once the Minister replies, the SCoF will make their final decision as to whether they think the implementation date should be 1 March 2024 or 1 March 2025. In early December, SCoF's report and the updated RLB will be tabled before the National Assembly for debate. A final decision on the implementation date is expected before Parliament rises for the year-end of 2023.

Retirement funds and their appointed administrators are working to ensure that they are ready for the implementation of the new two-pot regime if the new proposed date of 1 Mach 2024 is implemented. However, the success of readiness to pay saving withdrawal claims on the implementation date is dependent on the final legislation being promulgated as well as the FSCA's readiness to register and approve rule amendments relating to the two-pot regime. In addition to this, SARS still needs to find a solution for a seamless tax application process so that saving withdrawal claims are paid out quickly and efficiently.

We will guide you through this journey, and more information will follow.

23 November

We've updated our application form for our Guaranteed Return Plans

We've updated the Guaranteed Return Plans application form. The new form will be available on Adviser 360 from 18 November 2023. Please note that clients need to use the new form to apply for a Guaranteed Return Plan.

Product	Stock ordering	Key changes on forms	Launch date	The previous form will be accepted until
Application form: Guaranteed Return Plans	AGRPE 18/11/2023	Disclaimers around tax and legislative changes	18 November 2023	2 December 2023

We understand that some people still use the current application form. Therefore, we will accept the current version of the form until 2 December 2023. Forms that you have submitted up until this date are not affected by these changes.

Threadneedle (Lux) funds portfolio and company name change

Columbia Threadneedle is renaming their portfolios from 20 November 2023. The name change applies to the following funds:

Current fund	New fund
EUR - THREADNEEDLE (LUX) ENH CM "ZEH" (EURHDG)	EUR - Columbia Threadneedle (Lux) ENH CM "ZEH" (EURHDG)
GBP - THREADNEEDLE (LUX) EN "ZGH" (GBPHDG)	GBP - Columbia Threadneedle (Lux) EN "ZGH" (GBPHDG)
USD - THREADNEEDLE (LUX) ENH CM "ZU" (USD)	USD - Columbia Threadneedle (Lux) ENH CM "ZU" (USD)
EUR - THREADNEEDLE (LUX) ENH CM "ZEH" (EURHDG)	EUR - Columbia Threadneedle (Lux) ENH CM "ZEH" (EURHDG)

In addition, there is a change in the company name from Threadneedle (Lux) - Enhanced Commodities to Columbia Threadneedle (Lux) Enhanced Commodities.

There are no other changes to the portfolios or to the current tax treatment of the portfolios.

Amalgamation of Absa portfolios with Sanlam Investment Management's portfolios ballot letter

Sanlam Investment Holdings notified us of a ballot to propose the amalgamation of Absa portfolios with Sanlam Investment Management's portfolios within the Sanlam Collective Investments Scheme ballot letter.

View a copy of the ballot letter for more information about the ballot and how it will affect investors.

We will distribute the ballot letters to the affected investors from 23 November 2023. If the ballot is successful, the change will be scheduled for 22 March 2024.

See how you and your clients can access communication in the Secure Inbox and Secure document vault.

Amalgamation of Absa unit trust portfolios with Sanlam unit trust portfolios ballot letters

Absa Fund Managers notified us of ballots to propose the amalgamation of Absa unit trust portfolios with Sanlam unit trust portfolios.

View the letters, which have more information about the ballot and how it will affect investors:

• Absa multi-managed portfolios with Absa Sanlam co named portfolios:
  • Ballot letter
  • Investor letter
  • Annexure
• Absa global feeder fund with the Sanlam Schroder global feeder fund:
  • Ballot letter
  • Investor letter
  • Annexure
• Absa single managed portfolios with the SIM single managed portfolios:
  • Ballot letter
  • Investor letter
  • Annexure

We will distribute the ballot letters to the affected investors from 23 November 2023. If the ballots are successful, the change will be scheduled for 22 March 2024.

See how you and your clients can access communication in the Secure Inbox and Secure document vault.

Amalgamation of the STANLIB Balanced Fund and the STANLIB Multi-Asset Growth Fund ballot letter

STANLIB Collective Investments notified us of a ballot to propose the amalgamation of the STANLIB Balanced Fund with the STANLIB Multi-Asset Growth Fund.

View a copy of the ballot letter for more information about the ballot and how it will affect investors.

We will distribute the ballot letters to the affected investors from 24 November 2023. If the ballot is successful, the amendment will be scheduled for 9 February 2024.

See how you and your clients can access communication in the Secure Inbox and Secure document vault.

16 November

Discovery Invest year end event

The Discovery Invest team will be out of the office from 12:00 on Thursday, 30 November 2023. The contact centres will not be able to take any calls from 12:00. You may still send in transactions as usual. Business will resume as normal on Friday, 1 December 2023

Multimanager Portfolio name change: Target CPI to STAR

Star Investment Partners notified us that they have renamed their model portfolios effective 2 November 2023. The name changes apply to the following model portfolios:

Current Model portfolio	New Model portfolio
Target CPI + 2% Portfolio	STAR Conservative Portfolio
Target CPI + 4% Portfolio	STAR Moderate Portfolio
Target CPI + 6% Portfolio	STAR Balanced Portfolio

There are no other changes to the portfolios or to the current tax treatment of the portfolios.

STANLIB Flexible Income Fund fee reduction

STANLIB notified us of a fee reduction effective immediately. The fee reduction applies to the following fund:

Fund name	Current fee	New fee
STANLIB Flexible Income Fund Class B2	0.575% (including VAT)	0.46% (including VAT)

There are no other changes to the portfolios or to the current tax treatment of the portfolios.

09 November

Two-pot retirement system

Summary of the changes

• The effective date of the two-pot retirement system is postponed to 1 March 2025.
• There is an increase on the seed capital amount, which will be the lesser of 10%, capped at R30,000. This means that on 28 February 2025, a once off amount of 10% (capped at R30,000) of the total value of the vested component in the Fund will be transferred from a member's vested component to a member's savings component.
• Provident fund and preservation fund members aged 55 and older on 1 March 2021, are exempt from the two-pot system. They can opt in at any time after the legislation is implemented and participate in the two-pot regime. However, once they have opted in, they cannot opt out. If these members choose to opt in, the calculation for the seed capital amount, must be done retrospectively as of 28 February 2025.
• Members' rights to withdraw from the savings component is limited to one withdrawal during a tax year. The savings withdrawal benefit will be taxed at marginal rates. If a member has multiple contracts in the same Fund, one withdrawal during a tax year may be made from each of the contracts in the Fund. Note that the seed capital amount is calculated at Fund level, but savings withdrawals can be made from each contract in the Fund.
• Rules on payment of death benefits remain unchanged. On death, the total value of all three components will be available as a cash lump-sum, and beneficiaries/dependants can choose a cash lump-sum payment or elect to buy annuities.
• Preservation fund members who have not exercised their one pre-retirement withdrawal will still be allowed their one withdrawal before retirement.
• Preservation fund members who have exercised their one pre-retirement withdrawal will be entitled to a seed capital amount, which they can access before reaching age 55 years (early retirement date).
• Paid up members on retirement annuity funds will be entitled to a seed capital amount, which they can access before reaching age 55 years (early retirement date).

02 November

Amalgamation of AF Investments Stable FoF with AF Investments Conserver Managed Unit Trust

Alexander Forbes Investments Limited notified us of a ballot to propose the amalgamation of AF Investments Stable FoF with AF Investments Conserver Managed Unit Trust.

The ballot letter has more information about the ballot and how it will affect investors.

We have sent the ballot letters to the affected investors from 1 November 2023. If the ballot is successful, the change will be scheduled for 9 February 2024.

See how you and your clients can access communication in the Secure Inbox and Secure document vault.

Rock Capital IP Worldwide Flexible Fund and IP Flexible Growth Fund ballot letter

IP Management Company notified us of ballots proposing changes to the Rock Capital IP Worldwide Flexible Fund and the IP Flexible Growth Fund investment policy.

View the letters, which have more information about the ballot and how it will affect investors:

• Rock Capital IP Worldwide Flexible Fund ballot letter
• IP Flexible Growth Fund ballot letter

We have sent the ballot letters to the affected investors from 31 October 2023. If the ballot is successful, the change will be scheduled for 24 January 2024.

See how you and your clients can access communication in the Secure Inbox and Secure document vault.

Fibonacci BCI Diversified Growth Fund Class C name change

Boutique Collective Investments notified us they are renaming their fund effective 1 November 2023. The name change applies to the following fund:

Current fund	New fund
Fibonacci BCI Diversified Growth Fund Class C	Fibonacci BCI Balanced Fund

There are no other changes to the portfolios or to the current tax treatment of the portfolios.

Global boost letter

Some clients have chosen to have the total boost on their retirement solution grow in line with their Discovery Global Portfolios. We will send communication to these clients about the update to their investment and limited boosts as at the end of September 2023.

Clients will receive email notifications from 1 November 2023 to inform them about the update. These notifications direct clients and you, as their financial adviser, to access these letters through our Discovery app and secure website.

View a copy of the letter.

See how you and your clients can access communication in the Secure Inbox and Secure document vault.

26 October

Fixed Annuity limited offer letter

Clients who qualify for the additional income current offer will receive letters at the end of the month in which we have processed their application during this offer period. These letters aim to inform clients about the 5% additional income they will receive on each income payment date for the first two years of their policy. The additional income is an addition to their annuity income amount, after yearly income escalations have been allowed for and before deducting tax.

The first letter will be available at the end of October, followed by the second letter at the end of November, again in December, and lastly in January.

Access a copy of the letter to find out more about this offer.

See how clients and financial advisers can access communication in the Secure Inbox and Secure document vault.

Beneficial ownership

Since 2017, accountable institutions in Discovery have the duty to establish and determine the identity of each natural person who is a beneficial owner or controller, and to take reasonable steps to verify the beneficial owners or controllers.

Beneficial owners are considered natural persons who own the legal entity or exercise effective control of the legal entity. The client being a legal entity can be a company, close corporation, foreign company or any other form of corporate arrangement or association.

The following has more information about the importance of beneficial owners, and how to identify and verify them, and lastly about supporting documents that are required at new business submission.

The importance of identifying and verifying a beneficial owner

Discovery, like other institutions, follows due process to determine who the beneficial ownership of a legal entity is. Briefly, Discovery needs to:

• Determine the natural person who independently or together with another person has a controlling ownership interest in the legal entity.
• Establish the natural person who exercises control of the legal entity through other means. An example of other means could be persons exercising control through voting rights attaching to different classes of shares or through shareholders' agreements.
• Determine the natural person who exercises control over the management of the legal entity, for example, an executive officer, non-executive director, independent non-executive director, director or manager.

Required supporting documents:

• Resolution of a legal entity with all the directors' signatures
• Company registration documents, such as CK documents
• Legal Entities: Beneficial owners and Related parties form, accessible on Adviser 360. Once you have logged in, select Marketing support> Product Support: Invest> Forms: New Business.

We might request additional supporting documents where required. All supporting documents must be uploaded at new business stage or through Adviser 360.

IP Flexible Fund of Funds name change

MitonOptimal South Africa (Pty) Ltd notified us that they are renaming their fund with immediate effect. The name change applies to the following fund:

Current fund	New fund
IP Flexible Fund of Funds Class B2	IP Flexible Growth Fund Class B2

There are no other changes to the portfolios or to the current tax treatment of the portfolios.

19 October

Quarterly investment statements now available

Our quarterly investment statements for 1 July to 30 September 2023 are now available in the Secure document vault. We have sent emails, SMSs and push notifications to clients to let them know that the statements are available.

Clients can access their investment statements in the following ways:

• Log in to our secure website, www.discovery.co.za. Once they're logged in, they must select the INVESTMENTS tab at the top of the screen, and then select Quarterly investment statement.
• Download the Discovery app on their smart device and log in using the same details they use to log in to our secure website. Once they're logged in, they must select INVESTMENTS, choose the investment, select Secure document vault and then select Statements.

Regulation 28 non-compliant letters

Every quarter we advise clients, whose investments are not compliant with Regulation 28 at a specific point in time, on the required action. We distributed notifications from 16 October 2023 to clients who were not compliant at the end of June 2023. The notifications direct clients and their financial advisers to access their letters in our Discovery app and secure website.

View a copy of the letter.

See how you and your clients can access communication in the Secure inbox and Secure document vault.

Fibonacci BCI Diversified Growth Fund's ballot letter approved

We received confirmation from Boutique Collective Investments about the successful ballot to amend the Fibonacci BCI Diversified Growth Fund's investment policy.

The amendment will come into effect on 1 November 2023.

12 October

Capital 200+ September 2018 tranche matured

The maturity confirmation letter for the September 2018 tranche of our popular Capital 200+ structured product is now available. The tranche matured on 28 September 2023. The cumulative performance of the underlying share basket was 29.99%. Therefore, investors in this tranche will receive 100% growth before the effect of fees and taxes.

We will switch the maturity proceeds from this tranche into the Discovery Cautious Balanced Fund as outlined in the Discovery Capital 200+ September 2018 factsheet.

Clients received email notifications from 10 October 2023 about the maturity of the Discovery Capital 200+ (September 2018 tranche). Clients can view their letters by either opening the attachment or by accessing them in the Secure-Inbox and Secure document vault, through our Discovery app and secure website.

View a copy of the letter.

See how you and your clients can access communication in the Secure Inbox and Secure document vault.

Aberdeen Offshore funds name change

Allfunds notified us that they are renaming their funds and the name changes will be effective from 16 October 2023. The name change applies to the following funds:

Current fund	New fund
USD - Aberdeen Standard Liquidity Fund (LUX) - USD ACC Class I2 (USD)	USD - ABRDN LIQUIDITY FUND (LUX)- USD ACC Class I2 (USD)
EUR - Aberdeen Standard Liquidity Fund (LUX) - EUR ACC Class I2 (EUR)	EUR - ABRDN LIQUIDITY FUND (LUX)- EUR ACC Class I2 (EUR)
USD - Aberdeen Liquidity Fund (Lux) -US Dollar Fund	USD - ABRDN LIQUIDITY FUND (LUX)-US Dollar Fund
EUR - Aberdeen Liquidity Fund (Lux) -Euro Fund	EUR - ABRDN LIQUIDITY FUND (LUX)-Euro Fund

There are no other changes to the portfolios or to the current tax treatment of the portfolios.

5 October

Fibonacci funds capped for new business and fund switches

Boutique Collective Investments notified us that they are capping the below Fibonacci Funds with immediate effect for new business and fund switches:

• Fibonacci Conservative Fund
• Fibonacci Moderate Fund
• Fibonacci Aggressive Fund

There are no other changes to the fund or to the current tax treatment of the fund.

21 September

JPM Emerging Markets Equity ACC Class C fee change

Allfunds notified us of a change to their fund fee. The change is with immediate effect and applies to the following fund:

Fund name	Current fee	New fee
JPM Emerging Markets Equity ACC Class C	0.85% (Incl VAT)	0.75% (Incl VAT)

There are no other changes to the fund or to the current tax treatment of the fund.

Cogence Models name change

Cogence have renamed their funds with immediate effect. The name change applies to the following funds:

Current fund	New fund
Cogence Growth Portfolio	Cogence Balanced Portfolio
Cogence Unconstrained High Equity Portfolio	Cogence Equity Portfolio

There are no other changes to the portfolios or to the current tax treatment of the portfolios.

14 September

Clients can now invest in a combination of model portfolios and funds

We are excited to offer clients the option to invest in a combination of multiple model portfolios and individual funds on the Discovery platform. This will give them maximum flexibility in terms of investment options available through us.

This functionality has been available on the following products since 11 September 2023:

• Lump sum Retirement Annuities and Preservers
• Lump sum Endowment
• Lump sum Flexible Investment
• Living Annuities

How clients can invest in blended model portfolios and funds

• If a new client would like to take advantage of this functionality, they will first need to activate the investment.  We will then invest the client's money in a single model, individual fund or combination of individual funds. After that, the client can send in a switch instruction through their financial adviser asking to invest in the desired combination of model portfolios and funds.
• Existing clients can send in a switch instruction through their financial adviser to invest into any combination of model portfolios and funds.

 

You can read more about the switching process and withdrawal strategies for multiple model portfolios and funds

7 September

AIP Capital Management Fund name change and change in Investment Manager

AIP Capital Management is renaming their fund with immediate effect. The name change applies to the following fund:

Current fund	New fund
AIP Multi-Strategy FR Retail Hedge Fund Class 1	AIP RCIS Multi-Strategy Retail Hedge Fund

In addition, there is a change in Investment Manager. The Investment Manager is changing from Fundrock Management Company to RealFin Collective Investment Schemes (RF).

There are no other changes to the portfolios or to the current tax treatment of the portfolios.

24 August

Denker Sanlam Collective Investments Equity Fund class changes

Sanlam notified us of changes to the classes of the Denker Sanlam Collective Investments Equity Fund. The existing fund classes B3 and B8 of the fund have been capped for new business and fund switches starting immediately. New fund classes B2 and B6 are now available for investment.

A bulk switch will take place to move the existing investments from class B3 to class B2 and class B8 to class B6.

There are no other changes to the fund or to the current tax treatment of the fund.

17 August

Fibonacci BCI growth fund's ballot letter

Boutique Collective Investments notified us of a ballot proposing a change to the Fibonacci BCI Diversified Growth Fund's investment policy.

The ballot letter has more information about the ballot and how it will affect investors.

We sent the ballot letters to the affected investors from 16 August 2023. If the ballot is successful, the change will be scheduled for 1 November 2023.

See how you and your clients can access communication in the Secure Inbox and Secure document vault.

03 August

Amalgamation of Skyblue FoF with Select Manager FoF ballot letter

Boutique Collective Investments notified us of a ballot to propose the amalgamation of Skyblue fund of funds with Select Manager fund of funds ballot letter.

The notification letter has more information about the ballot and how it will affect investors.

We will distribute the ballot letters to the affected investors from 4 August 2023. If the ballot is successful, the change will be scheduled for 27 October 2023.

See how you and your clients can access communication in the Secure Inbox and Secure document vault.

Surname Updates

The Department of Home Affairs and the National Population Register governs people to use their surname registered with Home Affairs. In line with this, from 1 September 2023, we will only accept clients' full names and surnames as they are registered with Home Affairs to process any instructions.

This is also in keeping with the processes of Discovery Holdings Group to ensure alignment and ease of managing the customer experience.

How to update existing clients' surnames across the Discovery Holdings Group

• Send an instruction to invest servicing support@discovery.co.za with a Request to change details form for each existing client whose surname you want to update.
• Include a copy of the client's marriage certificate or dicorce decree with the form.

Transfer in checklist

To assist you in understanding the transfer in process a little better, here is the Discovery Invest Transfer in checklist document. The document has details about the different transfer processes, requirements and service-level agreement (SLA)

20 July

Quarterly investment statements now available

Our quarterly investment statements for 1 April to 30 June 2023 are now available in the Secure document vault. We have sent emails and SMSs to clients to let them know that the statements are available. Clients can access their investment statements in the following ways, they can:

• Log in to our secure website, www.discovery.co.za. Once they're logged in, they must select the INVESTMENTS tab at the top of the screen, and then select Quarterly investment statement.
• Download the Discovery app on their smart device and log in using the same details they use to log in to our secure website. Once they're logged in, they must select INVESTMENTS, choose the investment, select Secure document vault and then select Statements.

Discovery Capital 200+ (September 2018 tranche), maturity letter

The Discovery Capital 200+ (September 2018 tranche) is a five year product that provides exposure to the performance of the European and United States equity markets. The global portfolio comprises 70% Eurostoxx 50 and 30% S&P 500 price indices

If the global portfolio is positive at the end of the five year period, the Discovery Capital 200+ provides a 100% gross return. This is before the effect of any administration fees, financial adviser fees and taxes if these apply. The five year-period ends on 28 September 2023.

Clients currently invested in this fund received letters from 18 July 2023. The purpose of these letters is to inform them about the maturity of the Discovery Capital 200+ (September 2018 tranche).

View a copy of the letter.

See how you and your clients can access their communication in the Secure Inbox and Secure document vault.

13 July

Updated forms

Here is the latest form matrix with information on which forms we've updated. All updated forms are available on the Financial Adviser Zone (FAZ). Please note that clients need to use the updated forms.

We understand that some clients will still use the current forms. Therefore, we will accept the current versions of the forms until 21 July 2023, as shown in the matrix. Forms that were submitted up until this date are not affected by these changes.

Regulation 28 non compliant letters

Every quarter we advise clients whose investments are not Regulation 28 compliant at a specific point in time, on the required action. We will distribute the next set of notifications from 14 July 2023 to clients who were not compliant at the end of March 2023. The notifications will direct clients and their financial advisers to access their letters in our Discovery app and secure website.

View a copy of the letter.

See how you and your clients can access communication in the Secure inbox and Secure document vault.

6 July

We've updated an important application form: Discovery Retirement Optimiser RA

We've made updates to the Discovery Retirement Optimiser - Retirement Annuity form.

The updated form is available on the Financial Adviser Zone (FAZ). Please note that clients need to now fill in the updated form. We understand that some clients are still using the previous version of the form. Therefore, we will accept that version of the form until 14 July 2023.

29 June

Coronation Global funds capped

Coronation notified us that the following discretionary products (investment plan) are capped with immediate effect for new business and fund switches.

• Coronation Global Opportunities Equity (ZAR) Feeder Fund Class P
• Coronation Global Optimum Growth Feeder Fund Class P
• Coronation Global Managed (ZAR) Feeder Fund Class P

Recurring premiums can continue. There are no other changes to the fund or to the current tax treatment of the fund.

22 June

Availability of the 2022/2023 Discovery Invest tax certificates and Invest International Statement of transactions to assist with Capital Gains Tax reporting

We will be distributing the 2022/2023 Discovery Invest tax certificates for local products and Statement of transactions to assist with Capital Gains Tax reporting for international investments from 26 June 2023. These documents will be available on the Discovery app and our secure website from 26 June 2023.

See how you and your clients can access their communication in the Secure Inbox and Secure document vault.

15 June

Boutique Collective Investments fee change

Boutique Collective Investments notified us of a change to their annual management fee. The change is effective from 1 July 2023 and applies to the following funds:

Fund name	Current fee	New fee
Select Manager BCI Balanced Fund of Funds	1.00% (excl VAT)	0.86% (excl VAT)
Select Manager BCI Cautious Fund of Funds	1.00% (excl VAT)	0.86% (excl VAT)

There are no other changes to the fund or to the current tax treatment of the fund.

Discovery Capital 200+ (June 2018 tranche) maturity confirmation letter

Discovery Capital 200+ (June 2018 tranche) is a five-year product that provides exposure to the performance of the European and US equity markets. The June 2018 tranche of the Discovery Capital 200+ matured on 1 June 2023.

Clients received email notifications from 14 June 2023 about the maturity of the Discovery Capital 200+ (June 2018 tranche). Clients can view their letters by either opening the attachment or by accessing them in the Secure-Inbox and Secure document vault, through our Discovery app and secure website.

View a copy of the letter.

See how you and your clients can access communication in the Secure-Inbox and Secure document vault.

8 June

Amalgamation of the AIP SNN Multi Strategy Retail Hedge Fund ballot letter

Sanne Management Company notified us of a ballot to propose the amalgamation of the AIP SNN Multi Strategy Retail Hedge Fund with the AIP RCIS Multi Strategy Retail Hedge Fund.

The ballot letter and annexure have more information about the ballot and how it will affect investors.

We will distribute the ballot letters to the affected investors from 7 June 2023. If the ballot is successful, the change will be scheduled for 23 August 2023.

See how you and your clients can access communication in the Secure Inbox and Secure document vault.

Prescient Cogence FOF name change

Prescient Fund Services have renamed their funds from 2 June 2023. The name change applies to the following funds:

Current fund	New fund
Cogence Global Moderate Prescient Fund of Funds	Cogence Global Moderate Prescient Feeder Fund
Cogence Global Growth Prescient Fund of Funds	Cogence Global Growth Prescient Feeder Fund
Cogence Global Cautious Prescient Fund of Funds	Cogence Global Cautious Prescient Feeder Fund

There are no other changes to the portfolios or to the current tax treatment of the portfolios.

25 May

Fibonacci BCI Diversified Growth Fund's ballot letter

Boutique Collective Investments notified us of a ballot proposing a change to the Fibonacci BCI Diversified Growth Fund's investment policy.

The ballot letter has more information about the ballot and how it will affect investors.

We distributed the ballot letters to the affected investors from 23 May 2023. If the ballot is successful, the change will be scheduled for 1 August 2023.

See how you and your clients can access communication in the Secure Inbox and Secure document vault.

Discovery Capital 200+ (June 2018 tranche) maturity letter

The Discovery Capital 200+ (June 2018 tranche) is a five year product that provides exposure to the performance of the European and United States equity markets. The global portfolio comprises 70% Eurostoxx 50 and 30% S&P 500 price indices. If the global portfolio is positive at the end of the five year period, the Discovery Capital 200+ provides a 100% gross return. This is before the effect of any administration fees, financial adviser fees and taxes, where applicable. The five year period comes to an end on 1 June 2023.

Clients currently invested in this fund received letters from 23 May 2023. The purpose of these letters is to inform them about the maturity of the Discovery Capital 200+ (June 2018 tranche).

View a copy of the letter.

See how you and your clients can access their communication in the Secure Inbox and Secure document vault.

Guaranteed Escalator Annuity conversion to the new Discovery Living Annuity

The Guaranteed Escalator Annuity is a retirement income plan that allowed clients to invest their retirement savings and draw a monthly income. Through this plan, there were clients invested in our range of Discovery Annuity Escalator funds and Geared Annuity Escalator funds. This plan gives clients a guaranteed minimum level of income that will last throughout retirement with flexible yearly income withdrawals. The Guaranteed Escalator Annuity is closed to new business.

Our latest version of the Discovery Living Annuity offers clients cost effective admin fees and the ability to get up to 50% more income each month for life through the Income Boost. Clients can now also choose to receive enhanced income boosts of up to 100% if they are diagnosed with certain neurological conditions.

Financial advisers with clients invested in the Guaranteed Escalator Annuity received letters from 19 May 2023. The purpose of the letter is to inform them about the latest version of the Discovery Living Annuity and how their clients can convert their Guaranteed Escalator Annuity to the latest Discovery Living Annuity. The letter also explains the key impacts and process of converting to the Discovery Living Annuity.

See how you and your clients can access communication in the Secure inbox and Secure document vault.

18 May

Discovery Enhanced Yield Fund (July 2018 tranche) update letter

We sent letters to clients who met the following criteria:

• Those who invested in a Discovery lump sum investment.
• Those who will complete their fifth year of investment in the Discovery Enhanced Yield Fund (July 2018 tranche) on 31 July 2023.

The purpose of these letters is to inform clients about the performance of the Discovery Enhanced Yield Fund (July 2018 tranche). Clients and financial advisers received letters from 15 May 2023.

View the attached copy of the letter.

See how you and your clients can access communication in the Secure inbox and Secure document vault.

26 April

Tax certificates and Invest International Statement of transactions for 2022/2023

We plan to distribute the following in June 2023 for the 2022/2023 tax year:

• Discovery Invest tax certificates
• Invest International Statement of transactions to assist with Capital Gains Tax reporting.

During this period, we will also send SMSs to clients informing them about the availability of the certificates and statements. In addition, we will make the certificates and statements available on the Discovery app and website for clients to access.

See how you and your clients can access their communication in the Secure Inbox and Secure document vault.

Coronation Fund name change

Coronation notified us that they are renaming their funds with immediate effect. The name change applies to the following fund:

Current fund name	New fund name
Coronation Jibar Plus Fund Class P	Coronation Defensive Income Fund

There are no other changes to the portfolios or to the current tax treatment of the portfolios.

Global boost letter

There are clients who have chosen to have the total boost on their retirement solution grow in line with their Discovery Global Portfolios. We send communication to these clients about the update to their investment and limited boosts as at the end of March 2023. We sent clients email notifications from 24 April 2023 to inform them about the update. These notifications direct clients and their financial advisers to access these letters through our Discovery app and secure website.

View a copy of the letter.

See how you and your clients can access communication in the Secure inbox and Secure document vault.

20 April

Availability of quarterly investment statements

Our quarterly investment statements for 1 January to 31 March 2023 are now available in the Secure document vault. We have sent emails and SMSs to clients to let them know that the statements are available. Clients can access their statements by logging in to the Discovery app and our secure website.

Clients can access their investment statements in the following ways:

• Log in to our secure website, www.discovery.co.za. Once they're logged in, they select the INVESTMENTS tab at the top of the screen, and then select Quarterly investment statement.
• Download the Discovery app on their smart device and log in using the same details they use to log in to our secure website. Once they're logged in, they select INVESTMENTS, choose the investment, select Secure document vault and then select Statements.

13 April

Regulation 28 non-compliant letters

Every quarter, we advise clients whose investments are not Regulation 28 compliant at a specific point in time on the required action.

The next set of notifications will be distributed on 14 April 2023 to clients who were non-compliant at the end of December 2022. The notifications will direct clients and their financial advisers to access their letters securely through the Discovery app and website.

View a copy of the letter.

Click here to see how you and your clients can access communication in the Secure inbox and Secure document vault.

23 March

Fibonacci BCI Diversified Growth Fund Class B capped

Boutique Collective Investments notified us that the existing Fibonacci BCI Diversified Growth Fund Class B is capped with immediate effect for new business and fund switches.

There are no other changes to the fund or to the current tax treatment of the fund.

The effect of changes to the Taxation Laws Amendment Act 20 of 2022

The Taxation Laws Amendment Act 20 of 2022 (TLAA) has introduced changes, effective from 1 March 2023, that affect the transfer rules on multiple contracts within retirement annuity funds. Get the full details of the changes and how they could affect the transfers of contracts held within the Discovery Retirement Annuity Funds.

16 March

2022/2023 tax certificates

We are busy working on Discovery Invest tax certificates for the 2022/2023 tax year. We will advise you as soon as the certificates are available on the Discovery app and our secure website.

SA Asset Management (Becker Financial Advisors and Fortunate Brokers) merger letter

SA Asset Management, in consultation with Becker Financial Advisors and with Fortunate Brokers, notified us of amendment to their investment policy.

SA Asset Management has merged their discretionary investment management business with Independent Investment Solutions (Pty) Ltd (IIS).

View the letters, which have more information about the merger and how it will affect investors:

• SA Asset Management Becker Financial Advisors merger letter
• SA Asset Management Fortunate Brokers merger letter

We sent the letters to the affected investors from 17 March 2023.

See how you and your clients can access communication in the Secure Inbox and Secure document vault.

SA Asset Management BCI Managed Fund's ballot letter

SA Asset Management notified us of a ballot to propose the amendment of the investment policy.

The reason for the ballot is that SA Asset Management wants to change the structure of the above portfolio to a fund-of-fund mandate. They also propose to change the name of the portfolio.

View a copy of the ballot letter for more information about the ballot and how it will affect investors.

We sent the letters to the affected investors from 14 March 2023. If the ballot is successful, the amendment will happen on 31 May 2023.

See how you and your clients can access communication in the Secure Inbox and Secure document vault.

SARS tax directive changes from April 2023

SARS notified us of a tax percentage change to annuity incomes for the March 2023 to February 2024 tax year. Following this, we will send letters to the affected clients from 17 March 2023. Clients can view their letters either by opening the encrypted attachment or by accessing them in the Secure Inbox and Secure document vault, through our Discovery app and secure website.

View the attached copy of the letter.

See how you and your clients can access their communication in the Secure Inbox and Secure document vault.

09 March

Cogence Mauritian domiciled funds'

There were changes made to the Cogence Mauritian domiciled funds' management fees. The change is effective from 1 March 2023 and applies to the following funds:

Fund	Current fee	New fee
Cogence Global Conservative Portfolio (USD)	1.25 (incl VAT)	1.05% (incl VAT)
Cogence Global Growth Portfolio (USD)	1.25 (incl VAT)	1.05% (incl VAT)
Cogence Global Moderate Portfolio (USD)	1.25 (incl VAT)	1.05% (incl VAT)

There are no other changes to the fund or to the current tax treatment of the fund.

02 March

NN Funds name change and change in Investment Manager

Allfunds Group is renaming their funds with effect from 06 March 2023. The name change applies to the following funds:

Current fund	New fund
NN (L) US Credit Class R (USD)	GOLDMAN SACHS US DOLLAR CREDIT "R" (USD) ACC
NN (L) US Credit Class R (GBPHDG)	GOLDMAN SACHS US DOLLAR CREDIT "R" (GBPHDG) ACC
NN (L) European Real Estate ACC Class R (EUR)	GOLDMAN SACHS EUROPE REAL ESTATE EQUITY "R" (EUR) ACC
EUR - ING (L) Invest European Real Estate Fund	GOLDMAN SACHS EUROPE REAL ESTATE EQUITY "P" (EUR) ACC

In addition, there is a change in Investment Manager. The Investment Manager is changing from NNIP Advisors B.V to Goldmans Sachs Advisors B.V.

There are no other changes to the portfolios or to the current tax treatment of the portfolios.

Discovery Miles Integrator transfers will happen soon

The Discovery Miles Integrator rewards clients for taking responsibility for their financial future. It provides them with a boost of up to 300% to their Discovery Miles depending on their Vitality status and whether they are on Discovery Purple plans or not.

On 14 March 2023, clients who previously chose to transfer their Discovery Miles into their Discovery Miles Integrator will have 100% of their Discovery Miles balance automatically transferred into their Discovery Miles Integrator on their investment. We will transfer up to 1 Discovery Mile for every R10 of their lump sum Retirement or Preserver Plan fund balance.

We began distributing the attached letter to affected clients and their financial advisers from 21 February 2023.

Any clients who would like to stop the transfer will need to call the Discovery Invest contact centre on 0860 67 57 77 before 9 March 2023 to communicate their decision to us.

Discovery Enhanced Yield Fund matures

The Discovery Enhanced Yield Fund provides clients with a gross return of 17% after an investment period of one year if the FTSE 100 index (excluding dividends) is flat or positive at the end of the year. If the FTSE 100 index provides a negative return after one year, no amount is paid after the first year and the gross return on the Discovery Enhanced Yield Fund will be increased by another 17% and will become payable at the end of the second year if the index is positive. This continues for five years. If the index return is below 0% at the end of each of the years in the five-year period, downside protection is provided for falls of up to 30%.

After the third year of investment in the Discovery Enhanced Yield Fund (January 2020 tranche), the cumulative return of the FTSE 100 index was a positive 1.64%, resulting in clients now receiving a cumulative return of 51% before fees and taxes. Clients invested in a lump-sum Discovery Core Flexible Investment who have completed their third year of investment in the Discovery Enhanced Yield Fund (January 2020 tranche) will receive letters about the maturity of this fund from 8 March 2023.

View a copy of the letter.

See how you and your clients can access communication in the Secure inbox and Secure document vault.

02 February

Discovery Escalator Fund update

The Discovery Escalator Fund range gives clients upside exposure with downside protection, guaranteeing clients at least 80% of the highest value the Discovery Escalator Fund unit price has ever reached. It does this by dynamically allocating between cash and a risky asset using an algorithm that allocates more to cash when markets fall and vice versa, with a put option to provide the 80% guarantee.

Given the current market volatility, some of the Escalator funds have a larger proportion allocated to cash and, therefore, are not highly exposed to further market falls or rebounds. See the current allocation to risky assets of all our Escalator funds to help you make investment decisions for your clients.

Tax season submission and cut off dates

The end of the 2023 tax year is approaching fast. Here are some guidelines to make sure that your clients' contributions are included in the 2023 tax year.

Make sure that:

• New Discovery Retirement Optimiser and Discovery Retirement Annuity policies are active on or before 28 February 2023 to enable contributions in that tax year. Discovery Retirement Optimiser policies can start at any time during the month.
• All Tax-free Flexible Investment Plan applications and deposits reach us and are active on or before 28 February 2023. It is important to note the limits that apply for each policy every year.
• All additional investment applications (ad hoc applications) for Tax free Investment Plans and Discovery Retirement Annuities are processed on or before 28 February 2023.
• All electronic funds transfer (EFT) deposits reflect in our bank account by 28 February 2023.
• All debit orders are collected on or before 28 February 2023.

Group Retirement Annuity policies

Please ensure that the funds are paid, and their billing schedules are submitted before 21 February 2023 for cash policies.

Discovery Dollar Capital+ (December 2017 tranche) maturity confirmation letter

The Discovery Dollar Capital+ (December 2017 tranche) is a five year product that provides exposure to the performance of the European and US equity markets in US dollars. The December 2017 tranche of the Discovery Dollar Capital+ matured on 15 December 2022.

Clients received email notifications from 30 January 2023 to inform them about the maturity of the Discovery Dollar Capital+ December 2017 tranche. These notifications will direct you and your clients to access these letters through our Discovery app and secure website.

View a copy of the letters:

• Discovery Dollar Capital+ confirmation letter: Flexible Investment Plans
• Discovery Dollar Capital+ confirmation letter: Endowment Plans

See how you and your clients can access communication in the Secure inbox and Secure document vault.

Amalgamation of the Optimum BCI Stable Fund ballot letter

Boutique Collective Investments notified us of a ballot to propose the amalgamation of the AS Forum BCI Cautious Fund of Funds with the Optimum BCI Stable Fund.

The ballot letter has more information about the ballot and how it will affect investors.

We distributed the ballot letters to the affected investors from 31 January 2023. If the ballot is successful, the amendment is scheduled for 5 May 2023.

See how you and your clients can access communication in the Secure inbox and Secure document vault.

Fibonacci BCI Temperate Fund Class B1 capped

Boutique Collective Investments notified us that the existing Fibonacci BCI Temperate Fund Class B1 is capped with immediate effect for new business and fund switches.

There are no other changes to the fund or to the current tax treatment of the fund.

26 January

Global boost letter

Clients who have chosen to have the total boost on their retirement solution grow in line with their Discovery Global Portfolios will receive communication about the update to their investment and limited boosts as at end December 2022. Clients will receive email notifications from 27 January 2023 to inform them about the update. These notifications direct clients and their financial advisers to access these letters through our Discovery app and secure website.

View a copy of the letter.

See how you and your clients can access communication in the Secure inbox and Secure document vault.

The annual trustee report and pre retirement letters are now available

The annual trustee report and pre retirement letters are available on our secure website. These are required in terms of the Default Regulations to the Pension Funds Act for all members electing to retire from the Fund in 2023. The annual trustee report includes information about the retirement funds, its trustees and the activities of the Fund over the last financial year. The pre-retirement notice includes information on the options available to members who are electing to retire from the Funds' tax on their benefit and purchasing an annuity.

Members of the Fund began receiving SMS notifications from 23 January 2023 confirming the availability of the report and the pre retirement notice on our secure website.

Clients can log in to our secure website and select INVESTMENTS at the top of the screen. Then select Your investment portfolio. The communication is available under the Link and Tools menu on the right hand side of the screen. Select the Trustee Report or the Pre-retirement letter.

Financial advisers may also access these online by logging in to our secure website and selecting YOUR CLIENTS at the top of the screen. Then select Investments. Select Tools on the left hand side menu. The communication is available under About Funds, select the Trustee Report or the Pre-retirement letter.

19 January

Availability of quarterly investment statements

Our quarterly investment statements for 1 October 2022 to 31 December 2022 are now available in the Secure document vault. We have sent emails, SMSs and push notifications to clients to let them know that the statements are available. Clients can access their statements by logging in to the Discovery app and our secure website.

Clients can access their investment statements by:

• Logging in to our secure website, www.discovery.co.za. Once they're logged in, they should select the 'INVESTMENTS' tab at the top of the screen, and then select 'Quarterly investment statement'.
• Downloading the Discovery app on their smart device and logging in using the same details they use to log in to our secure website. Once they're logged in, they should select 'INVESTMENTS', choose the investment, select 'Secure document vault' and then select 'Statements'.

12 January

Regulation 28 non-compliant letters

Every quarter we advise clients whose investments are not Regulation 28 compliant at a specific point in time, on the required action.

We will distribute the next set of notifications from 13 January 2023 to clients who were not compliant at the end of September 2022. The notifications will direct clients and their financial advisers to access their letters in our Discovery app and secure website.

View a copy of the letter.

See how clients and their financial advisers can access their communication in the Secure inbox and Secure document vault.

15 December

Optimum BCI Equity Fund ballot letter

Optimum Investment Managers (Pty) Ltd, the investment manager of the Optimum BCI Equity Fund, notified us of a ballot to propose the amendment of the investment policy.

The ballot letter has more information about the ballot and how it will affect investors.

We distributed the ballot letters to the affected investors from 14 December 2022. If the ballot is successful, the amendment is scheduled for 28 February 2023.

See how you and your clients can access communication in the Secure inbox and Secure document vault.

Satrix MSCI World Equity Index Feeder Fund ballot letter

Satrix, the investment manager of the Satrix MSCI World Equity Index Feeder Fund, notified us of a ballot to propose the amendment of the investment policy. The reason for the ballot is that Satrix wants to change the structure of the above portfolio from a Feeder portfolio to an ordinary portfolio. They also propose to change the name of the portfolio.

The ballot letter has more information about the ballot and how it will affect investors. We will distribute the ballot letters to the affected investors from 13 December 2022. If the ballot is successful, the amendment is scheduled for 13 March 2023.

See how you and your clients can access communication in the Secure inbox and Secure document vault.

8 December

Regulation 28 amendments

Regulation 28 protects clients' savings in a retirement fund by limiting which funds they may invest in for particular assets or asset classes. This prevents excessive concentration risk.

On 1 July 2022, the National Treasury published final amendments to Regulation 28 of the Pension Funds Act.

On 15 December 2022, we will update our Regulation 28 tools in keeping with these amendments:

• Up to 45% of exposure can be in infrastructure investment.
• Exposure limits for private equity assets increased to 15%.
• Exposure to each entity or company is limited to 25%.

Going forward, we will screen for Regulation 28 compliance using the latest available actual asset allocation information.

Updated new business application forms

Attached is an application form matrix with information on which forms we've updated. All the new forms will be available on the Financial Adviser Zone (FAZ) from 16 December 2022. Please note that clients need to use the new forms to qualify for new benefits.

We understand that some people still use the current application forms. Therefore, we will accept the current versions of the forms until 31 December 2022, as shown on the attached matrix. Forms that you have submitted up until this date are not affected by these changes.

01 December

Global boost letter

We are sending communications to clients about the updates on their investment boost and limited offer boosts. These communications are going out specifically to those clients who chose to have the total boost on their retirement solution grow in line with their Discovery Global Portfolios. Clients received email notifications from 28 November 2022 to inform them about the update. These notifications direct clients and their financial advisers to access these letters through our Discovery app and secure website. We are planning to send another letter in January about the investment and limited boosts that take place at the end December 2022.

View a copy of the letter.

See how you and your clients can access their communication in the Secure inbox and Secure document vault.

24 November

Fidelity Global Property Fund merger

Allfunds notified us that the existing Fidelity Global Property Fund will merge with the Fidelity Funds - Sustainable Global Dividend Plus Fund. The merger takes place on 12 December 2022.

Fidelity Global Property Fund is now capped for new business and fund switches. All existing clients invested in the Fidelity Global Property Fund will be switched to the Fidelity Funds - Sustainable Global Dividend Plus Fund after the merger is effective.

There are no other changes to the fund or to the current tax treatment of the investments.

17 November

Classic Plans closing to new business

In line with Discovery Invest's strategy to simplify and streamline its product offering, we will close the Classic range of products to new business from Monday 12 December 2022. The following products are affected.

• Classic Retirement Annuities
• Classic Pension Preserver
• Classic Provident Preserver
• Classic Flexible Investment Plan

We will honour any applications for these products that are already in the pipeline on 12 December 2022, if we have received all supporting documents for the application by this date. There will be no effect on any existing clients who are already invested in these products.

Change to the name of the OIG model portfolios

Optimum notified us that they are renaming their model portfolios with immediate effect. The name changes apply to the following model portfolios:

Current model portfolio	New model portfolio
OIG Ultra-Conservative Portfolio	BBA Ultra-Conservative Portfolio
OIG Ultra-Conservative Portfolio	BBA Ultra-Conservative Portfolio

There are no other changes to the portfolios or to the current tax treatment of the portfolios.

Discovery Dollar Capital+ (December 2017 tranche) maturity

The Discovery Dollar Capital+ (December 2017 tranche) is a five-year product that provides exposure to the performance of the European and US equity markets in US dollars. Clients who are currently invested in this fund will receive email notifications from 29 November 2022, telling them how they can access their letters through our Discovery app and secure website. The purpose of these letters is to inform clients about the maturity of the Discovery Dollar Capital+ (December 2017 tranche).

View a copy of the letter

• Discovery Dollar Capital plus December 2017 tranche maturity letter Endowment Plans
• Discovery Dollar Capital plus December 2017 tranche maturity letter Flexible Investment Plans

Click here to see how you and your clients can access communication in the Secure inbox and Secure document vault.

03 November

Invest no longer accepts COVID 19 consents

Since August this year, we have been communicating the change in process to you. We remind you that from 1 September 2022, Discovery Invest no longer accepts COVID 19 consents. You need to ensure that all relevant documents are signed by the client physically or by using one of the following digital solutions:

• SmartAdvice signatures
• SigniFlow
• DocuSign
• HelloSign
• Santamflow
• QuicklySign (with an audit trail)
• Adobe Sign with certificate.

We will accept the signature on a document from a client when it is signed through any of these listed providers.

AIP NCIS name change

Novare notified us that they are renaming their fund with immediate effect. The name change applies to the following fund:

Current fund name	New fund name
AIP NCIS Active Alpha Retail Fund Class A1	SouthernCross NCIS Market Neutral RIF hedge Fund

There are no other changes to the portfolios or to the current tax treatment of the portfolios.

Cogence Model Portfolio name change

We have renamed the Cogence Model Portfolio with immediate effect. The name change applies to the Cogence Conservative Portfolio and the portfolio is now called the Cogence Cautious Portfolio.

There are no other changes to the portfolios or to the current tax treatment of the portfolios.

Discovery Invest year end function

The Discovery Invest team will be out of the office from 13:00 on Thursday, 10 November 2022. The contact centres will not be able to take any calls from 12:00. You may still submit transactions as usual. Business will resume as normal on Friday, 11 November 2022.

27 October

1st Fusion Models closure letter

The 1st Fusion Model portfolios will close on 10 November 2022. We sent out letters and SMSs to clients who have invested in this fund to inform them.

Clients can switch their assets into other funds of their choice before 10 November 2022. If clients have not switched their assets by then, we will automatically switch their assets into the Discovery Cautious Balanced Fund after 10 November 2022.

View a copy of the letter.

See how you and your clients can access their communication in the Secure inbox and Secure document vault.

20 October

Availability of quarterly investment statements

Our quarterly investment statements for 1 July to 30 September 2022 are now available in the Secure document vault. We have sent emails, SMSs and push notifications to clients to let them know that the statements are available. Clients can access their statements by logging in to the Discovery app and our secure website.

Clients can access their investment statements in one of the following ways:

• Log in to our secure website, www.discovery.co.za. Once they're logged in, they must select the INVESTMENTS tab at the top of the screen, and then select Quarterly investment statement.
• Download the Discovery app on their smart device and log in using the same details they use to log in to our secure website. Once they're logged in, they must select INVESTMENTS, choose the investment, select Secure document vault and then select Statements.

13 October

Discovery Capital 200+ September 2017 tranche maturity confirmation letters

The September 2017 tranche of the Discovery Capital 200+ matured on 29 September 2022. The tranche received 100% growth over five years which means clients, who invested in this tranche, doubled their investments (before fees and taxes) over the five year investment term. The underlying share portfolio grew by around 4.8% over the same period.

Clients received email notifications from 11 October 2022 to inform them about the maturity of the Discovery Capital 200+ September 2017 tranche. These notifications direct clients and their financial advisers to access these letters through our Discovery app and secure website.

View a copy of the letter

See how clients and their financial advisers can access their communication in the Secure inbox and Secure document vault.

Regulation 28 non compliant letters

Every quarter we advise clients whose investments are not Regulation 28 compliant at a specific point in time, on the required action. The next set of notifications will be distributed from 14 October 2022 to clients who were not compliant at the end of June 2022. The notifications will direct clients and their financial advisers to access their letters through our Discovery app and secure website.

See how clients and their financial advisers can access their communication in the Secure inbox and Secure document vault.

6 October

Investment mandate agreements

In August 2022 we shared the new Cogence Investment mandate agreement with you. We have also now redesigned our current Investment mandate agreement. There are now two Investment mandate agreements available on the Finanacial Adviser Zone (FAZ):

• Cogence Investment mandate agreement

The purpose of this mandate is for the clients to authorise Cogence to manage the investments on their behalf in accordance with the investment mandate objectives. This means, Cogence can act on the client's behalf without obtaining further consent from the client to effect any transaction in the investment.

• DFM Investment mandate agreement (Discovery)

The purpose of this mandate is for the clients to authorise Discovery to manage the investments on their behalf in accordance with the investment mandate objectives. This means, Discovery can act on the client's behalf without obtaining further consent from the client to effect any transaction in the investment.

To access the forms, log in to FAZ and select MARKETING SUPPORT > Invest > Forms.

29 September

Product updates

On 23 August 2022, Discovery launched Cogence, the first truly global discretionary fund manager in South Africa.

Discovery Invest also made some product updates that became available from 29 August 2022, details of which were included in the Cogence pdf and the subsequent webinar.

These product updates are also highlighted below

Minimum investment amounts for new business

The minimum lump sum investment amount on Core Retirement Annuities, Core Pension and Provident Preservers, Core Flexible Investments, Living Annuities and Endowments will increase to R75,000 from R60,000.

The minimum lump sum investment for investing in a Cogence model is R100,000 on all lump sum products.

There are no changes to the minimum investment amounts for recurring products and Classic products.

New Flexible Investment Plan

We introduced a new and simpler Flexible Investment Plan for new business only. The administration fees are aligned with Retirement Annuities, Preservers and Living Annuities and shown in the table below:

Investment size	Yearly administration fee (ex VAT)
First R2m	0.4%
Next R3m	0.35%
Above R5m	0.2%

You can still get discounts of up to 100% on your yearly administration fees depending on your Vitality status, amount invested in qualifying funds and how long you have been invested for. Qualifying funds consist of Discovery Funds, excluding the Discovery Money Market and the Discovery Diversified Income Fund.

For more information about the product rules, refer to the latest product fact file on the Discovery Invest website.

Bovest BCI fee change

BCI notified us of a change to their admin fee. The change is effective from 1 October 2022 and applies to the following funds (which are currently capped for new business and switches):

Fund name Current fee New fee	Current fee	New fee
Bovest BCI Conservative Fund of Funds Class A	0.85% (Excl VAT)	0.75% (Excl VAT)
Bovest BCI Managed Fund of Funds Class A	0.85% (Excl VAT)	0.75% (Excl VAT)
Bovest BCI Worldwide Flexible Fund of Funds Class A	0.85% (Excl VAT)	0.75% (Excl VAT)

There are no other changes to the fund or to the current tax treatment of the fund.

Update on Discovery Invest |COVID-19 consent discontinuation

We refer to our communication of 2 August 2022 about the discontinuation of the COVID-19 consent process. We would like to remind you that representatives no longer need to refer to the email consent as "COVID-19" consents; it is now simply an email consent.

The consent emails will need to state the following, verbatim (word for word):

From 1 September 2022, all product houses stopped accepting instructions and documents using the COVID 19 consent process. You need to ensure that all relevant documents are signed by the client physically or using one of the following digital solutions:

• Single Sales Platform digital acceptance - OTP (one time password)
• Financial Adviser Zone (FAZ) digital acceptance - OTP
• SmartAdvice signatures
• SigniFlow, DocuSign, HelloSign, Santamflow and QuicklySign (with an audit trail)
• Adobe Sign with certificate.

Discovery Group will accept the signature on a document from a third party when it is signed through any of these listed providers.

Withdrawal illustrations update

The withdrawal illustration function allows financial advisers and clients to generate a variety of withdrawal scenarios for full and partial withdrawals, depending on the product rules. This shows the possible impacts of a withdrawal on the client's assets and unique benefits.

From 17 October 2022, we will require withdrawal illustrations for partial and full withdrawals on the following products:

• PrimeFlex
• Essential Flexible Investment
• Classic Flexible Investment
• Core Flexible Investment
• Pension and provident (prior to retirement)
• Guaranteed Income and Growth Plans
• Endowments (DRO endowments included)

Clients and financial advisers can request withdrawal illustrations in the following ways:

• Clients can log in to our secure website and select the INVESTMENTS tab at the top of the screen. Select Your Investment Portfolio then scroll down to the Illustrations. Under Illustration type select Withdrawal Illustrations.
• Financial advisers can log in to the Financial Adviser Zone (FAZ), then select YOUR CLIENTS and select Investments. On the side menu, select Illustrations, Reports and Documents. Then choose Withdrawal.

The withdrawal illustration function allows financial advisers and clients to generate a variety of withdrawal scenarios for full and partial withdrawals, depending on the product rules. This shows the possible impacts of a withdrawal on the client's assets and unique benefits.

15 September

New tranches of our structured products are available from 19 September 2022

The November 2022 tranche of the Discovery Capital 200+ again offers clients the opportunity to access the performance of companies in offshore markets, with a global share portfolio comprising 20 companies in Europe and the US. This tranche is available on our local lump-sum Endowment.

Clients can get 100% growth in ZAR, before the effect of admin fees, advice fees and taxes, if the global share portfolio is flat or goes up by as little as 1%. In addition, they can get unlimited upside potential as well as downside protection, provided the global share portfolio does not fall by more than 30% during the five-year term.

Clients taking out new lump-sum Endowments can also get a boost of up to 20%. This tranche will remain open until 24 November 2022.

Click here to read more.

Clients looking for a global investment with currency exposure can also invest in the November 2022 tranche of the Discovery Dollar Capital 50:50+, through our Global Endowment.

This structured product will be based on a global share portfolio of European and US companies. Clients can get 50% growth in USD, before fees and taxes, provided the portfolio is flat or positive after five years. If the share basket grows by more than 50%, clients will receive at least 100% growth in USD, before any fees and taxes. Clients will also get downside protection for falls of up to 30% and unlimited upside potential if the global share portfolio goes up by more than 100%.

Clients can also qualify for the currency enhancer on the Global Endowment. This tranche will remain open until 21 October 2022.

Click here to read more.

Product updates

On 23 August 2022, Discovery launched Cogence, the first truly global discretionary fund manager in South Africa.

Discovery Invest also made some product updates that became available from 29 August 2022, details of which were included in the Cogence pdf and the subsequent webinar.

These product updates are also highlighted below

Minimum investment amounts for new business

The minimum lump sum investment amount on Core Retirement Annuities, Core Pension and Provident Preservers, Core Flexible Investments, Living Annuities and Endowments will increase to R75,000 from R60,000.

The minimum lump sum investment for investing in a Cogence model is R100,000 on all lump sum products.

There are no changes to the minimum investment amounts for recurring products and Classic products.

New Flexible Investment Plan

We introduced a new and simpler Flexible Investment Plan for new business only. The administration fees are aligned with Retirement Annuities, Preservers and Living Annuities and shown in the table below:

Investment size	Yearly administration fee (ex VAT)
First R2m	0.4%
Next R3m	0.35%
Above R5m	0.2%

You can still get discounts of up to 100% on your yearly administration fees depending on your Vitality status, amount invested in qualifying funds and how long you have been invested for. Qualifying funds consist of Discovery Funds, excluding the Discovery Money Market and the Discovery Diversified Income Fund.

For more information about the product rules, refer to the latest product fact file on the Discovery Invest website.

Annual SARS directive update - September 2022

Following our communication sent in August 2022, below is the latest information and update.

Latest updated fixed rate directive rules

A significant spike in complaints from administrators, annuitants and advisers led to multiple engagements between industry stakeholders and the South African Revenue Service (SARS). The outcome of these discussions led to a revision of the fixed rate directives, with SARS issuing a new updated file on 1 August 2022.

We have reviewed and assessed these updates, resulting in two separate outcomes:

1. A list of clients who will have a change in the specified directive percentage.
2. A list of clients where the specified directive percentage will be removed and changed to the PAYE tax table. We have identified three additional categories for this group of clients:
   1. Clients who have been taxed and will be receiving a refund.
   2. Clients who have been taxed and will not be taxed for the remaining tax period.
   3. Clients who will continue to be taxed, but at a lower tax amount for the remaining tax period.

We have sent notifications to the affected clients and their advisers from 9 September 2022 on how they can access their letters on our secure website. These letters explain the effect of the change to their specific investment policies. We will apply the changes to these policies from 1 October 2022 and aim to finalise any refunds by 31 October 2022.

APS funds name changed

Ci Collectives notified us that they are renaming their funds with immediate effect. The name changes apply to the following funds:

Current fund name	New fund name
APS Ci Cautious Fund of Funds	APS Ci Cautious Funds
APS Ci Moderate Fund of Funds	APS Ci Moderate Funds
APS Ci Managed Growth Fund of Funds	APS Ci Managed Growth Funds
APS Ci Equity Fund of Funds	APS Ci Equity Funds

Global boost letter

In July 2022, we communicated the update on the latest value for investment boosts to clients invested in Discovery Global Moderate Portfolio, Discovery Global Growth Portfolio and Discovery Global Conservative Portfolio. Clients who have now chosen to have their total boost on their retirement solution grow in line with their Discovery Global Portfolios will receive communication about the update to both their investment and limited boosts.

Affected clients and their advisers will receive notifications on how to access a copy of their letters on our secure website.

View a copy of the letter.

Clients and financial advisers can access their letters on our secure website in the following ways:

Clients

Clients can access the Secure Inbox and the Secure document vault by logging in to the web or the Discovery app. We also now include links in our email notifications to clients to make logging in easier.

• To access the Secure inbox: Once logged in, tap on the Secure inbox envelope icon on the top right hand side. The Secure Inbox will open and list all communication from Discovery. Use the filter to select specific products.
• To access the Secure document vault: Once logged in, select INVESTMENTS at the top of the screen. Select Secure document vault. The latest letters reflect at the top of the list. The client can also search for the document OR view the latest document.
• Alternatively: clients can click on the link available in their email notifications. The link will take them to a secure log in page before they can view their communication.

Financial advisers

Financial advisers can access their communication through FAZ.

• Once logged in, select YOUR CLIENTS, and select Investments. On the side menu bar, select DOCUMENTS AND REPORTS and select Secure document vault. Search for the document by entering the name, the client's name, or investment number.

8 September

Availability of client letters

The following letters were recently made available to clients and their financial advisers. We started distributing email notifications from 7 September 2022. These notifications instruct them on how they can access their letters on our secure website and Discovery app.

1. Discovery Capital 200+ (September 2017 tranche) maturity letter

The Discovery Capital 200+ (September 2017 tranche) is a five-year product that provides exposure to the performance of the European and US equity markets. The purpose of these letters is to notify clients currently invested in this fund about the maturity of the Discovery Capital 200+ (September 2017 tranche.

View a copy of the letter.

2. Discovery Enhanced Yield Fund (July 2018 tranche)

The purpose of these letters is to notify clients who completed their fourth year of investment in the Discovery Enhanced Yield Fund (July 2018 tranche) about the performance of this fund.

View a copy of the letter.

3. Discovery Global portfolio update

The purpose of this letter is to notify clients about the renaming of the Discovery Global Portfolios. Clients who received these notifications are those currently invested in one or more of the Discovery Global Portfolios through our Global Endowment. They have also chosen to link the growth of a product boost with one of the Discovery Global Portfolios.

View a copy of the letter.

Discovery Diversified Income Fund Class A capped

We have capped the Discovery Diversified Income Fund Class A with immediate effect for new business and fund switches.

There are no other changes to the Fund or to the current tax treatment of the Fund.

1 September

Discovery launches first of its kind discretionary fund manager, Cogence

 

On 23 August 2022, Discovery launched Cogence, the first truly global discretionary fund manager in South Africa.

Cogence marries the expertise of Discovery (whose behaviour-change platform is the largest of its kind) and BlackRock (one of the world's leading asset managers). Cogence then further combines this expertise with the local investment management expertise of RisCura, which understands the local market within a global context intimately.

When your clients invest in Cogence-managed funds on the Discovery Invest platform, they benefit from our shared-value model because Cogence funds qualify for boosts on certain products:

• Lump-sum Endowment (latest version)
• Core and Classic Pension and Provident Preservers
• Core and Classic Lump-sum Retirement Annuities
• Living Annuity (latest version)

For all other products not mentioned above, Cogence funds will be treated in the same manner as external funds in terms of boosts and fee discounts.

Lump-sum Endowment (latest version)
Cogence funds will qualify for half the level of boosts as on qualifying Discovery funds. This means that if your client wants to switch out of qualifying Discovery funds into Cogence funds, the boost will be reduced proportionally.

Lump-sum Retirement Annuities and Preservers
Cogence funds will qualify for half the level of boosts as on qualifying Discovery funds. This means that if your client wants to switch out of qualifying Discovery funds into Cogence funds, the boost will be reduced proportionally.

Living annuity (latest version)
Cogence funds qualify for income boosts of up to 25% on the latest version of our Living Annuity.

Updates to boosts on the Discovery Diversified Income Fund
This is only applicable to boosts on lump-sum pre-retirement products and the latest version of the lump-sum Endowment.

• From 29 August 2022, new investments to the Discovery Diversified Income Fund (including switches) will qualify for the same level of boosts as the Cogence funds.
• This means that if your client wants to switch out of qualifying Discovery funds into the Discovery Diversified Income Fund, the boost will be reduced proportionally.
• Current investments in the Discovery Diversified Income Fund will keep their boosts.

Fibonacci BCI fund updates

 

Fibonacci Asset Management notified us of an update to their Class, a switch from Class B1 to Class C. The change is effective 17 October 2022 and applies to the following funds:

• Fibonacci BCI Temperate Fund
• Fibonacci BCI Diversified Growth Fund

Clients received email notifications from 29 August 2022 onwards to inform them about this update. These notifications instruct them on how they can access their letters on our secure website.

View a copy of the letter

Financial advisers will also receive an email notification on how to access a copy of the letter on our secure website.

Clients and financial advisers can access their letters in the following ways:

• Clients can log in to our secure website and select INVESTMENTS at the top of the screen. Then select Secure document vault. The latest letters reflect at the top of the list. The client can also search for 'Fibonacci BCI Fund letter'.
• Financial advisers can log in to the Financial Adviser Zone (FAZ), then select YOUR CLIENTS and select Investments. On the side menu bar, select DOCUMENTS AND REPORTS and then Secure document vault. Search for 'Fibonacci BCI Fund letter'

Fidelity Fund name change

 

Allfunds notified us that they are renaming their fund immediately. The name change applies to:

Current fund name	New fund name
Fidelity Euro Blue Chip Fund	Fidelity Sustainable Europe Equity "A" ACC

There are no other changes to the portfolios or to the current tax treatment of the portfolios.

Updated forms matrix

 

We have created two new servicing forms and a forms matrix. These will let you know what information we updated on our forms.

Living Annuity with boosts for neurological conditions
The investor must complete this form if they want to add an income boost benefit in the event of nervous system conditions. The Living Annuity policy needs to be the latest version and the investor must be between age 56 and 70 to qualify for this benefit.

Investment mandate agreement
The Financial Service Provider (FSP) is required to get a signed mandate from clients before rendering any intermediary service to them. This is in line with the terms of paragraph 5 of the Code of Conduct for the Discretionary Financial Services Providers.

The purpose of this mandate is for the clients to authorise Cogence to manage the investments on their behalf in accordance with the investment mandate objectives. The mandate also provides Cogence with unlimited power to act on the client's behalf without further consent from the client to effect any transaction in the investment.

All new forms are available on the Financial Adviser Zone (FAZ). Please note that clients need to use the new forms to qualify for new benefits. You can access the forms by logging in to FAZ and selecting MARKETING SUPPORT > Invest > Forms.

We understand that some people still use the current forms. As a result, we will accept the current versions of the forms until 9 September 2022, as shown on the attached Discovery Invest Form matrix. Forms that you have submitted up until this date are not affected by these changes.

Discovery Equity Fund Supplemental Deed or Benchmark changes

 

Ninety One notified us of a benchmark change to the Discovery Equity Fund. The changes are effective from 1 September 2022.

Current Benchmark	New Benchmark effective 1 September 2022
85% FTSE/JSE Capped SWIX All Share Index and 15% MSCI All Country World Index	70% FTSE/JSE Capped SWIX All Share Index and 30% MSCI All Country World Index

The rationale for the change in the benchmark:

Regulatory changes have allowed for an increase in offshore exposure from 30% to 45%. Having analysed the behaviour of both the JSE Capped SWIX and MSCI All Country World indices in the context of this new limit, the investment manager has determined that 30% is an appropriate shift in strategic allocation to offshore equities in the medium term, from the current level of 15. Shorter-term views may be taken around this strategic level. Consequently, the investment manager (Ninety One) feels the appropriate benchmark for the Discovery Equity fund should be 70% FTSE/JSE Capped SWIX Index and 30% MSCI All Country World Index.

11 August

Ballot: Momentum Focus 4 Fund of Funds amalgamation

We received confirmation from Momentum about the successful ballot to merge the Momentum Focus 4 Fund of Funds and the Momentum Focus 5 Fund of Funds.

The merger came into effect on 29 July 2022. We are, therefore, closing the Momentum Focus 4 Fund of Funds to new business and switches with immediate effect.

1 August

Optimum BCI fee change

Boutique Collective Investments notified us of a change to their fund fee. The change is effective from 1 August 2022 and applies to the following fund:

Fund name	Current fee	New fee
Optimum BCI Equity Fund Class A	1.55% (Incl VAT)	1.15% (Incl VAT)

There are no other changes to the fund or to the current tax treatment of the fund.

28 July

Select Manager BCI fee change

BCI notified us of a change to their fund fees. The change applies from 1 August 2022 and applies to the following fund(s):

Fund name	Current fee	New fee
Select Manager BCI Balanced Fund of Funds Class A	1.15% (incl VAT)	1.00% (incl VAT)
Select Manager BCI Cautious Fund of Funds Class C	1.15% (incl VAT)	1.00% (incl VAT)

There are no other changes to the fund or to the current tax treatment of the fund.

21 July

Quarterly investment statements available

Our quarterly investment statements for 1 April to 30 June 2022 are now available in the Secure document Vault. We sent emails, SMSs and push notifications to clients to let them know that the statements are available.

Clients can access their investment statements in the following ways:

• They can log in to our secure website at www.discovery.co.za. Once they're logged in, they can select the INVESTMENTS tab at the top of the screen, and then select Quarterly investment statement.
• They can download the Discovery app on their smart device and log in using the same details they use to log in to our secure website. Once they're logged in, they can select INVESTMENTS, choose the investment for which they want a statement, select Secure document vault and then select Statements.

Name change for Optimum model

Optimum let us know that they are renaming their model portfolio with immediate effect. The name change apply to the following model portfolio:

Current model portfolio or fund name	New model portfolio or fund name
Optimum Balanced Solution	OIG Medium Equity Retirement Option

There are no other changes to the portfolios or to the current tax treatment of the portfolios.

Discovery Invest |COVID consent discontinuation

During the COVID 19 pandemic, Discovery Invest introduced the COVID 19 consent process by which you could send us your clients' instructions and documents in electronic format. The client could, by way of return email, confirm acceptance of those documents without having to sign them.?This process was a necessity at a time when it was not possible to physically meet with the client and the client was unable to sign the document digitally with the options available to them.

The COVID 19 restrictions have now been lifted, and more digital options are available for signing documents. As a result, Discovery Invest has decided to discontinue the COVID 19 consent process for all its representatives.

Documents must be signed physically or with a specified digital solution from 1 August 2022

From 1 August 2022, all product houses will not accept any instructions and documents using the COVID 19 consent process. After this date, you will have to ensure that all relevant documents are signed by the client physically or using one of the following digital solutions:

• Single Sales Platform digital acceptance - OTP (one time password)
• Financial Adviser Zone (FAZ) digital acceptance - OTP
• SmartAdvice signatures
• SigniFlow, DocuSign, HelloSign, Santamflow and QuicklySign (with an audit trail)
• Adobe Sign with certificate.

Discovery Group will accept the signature on a document from a third party when it is signed through any of these listed providers.

14 July

Sasfin BCI Flexible Income Fund Class B Capped

Sasfin has notified us that the existing Sasfin BCI Flexible Income Fund Class B is capped with immediate effect for new business and fund switches.

There are no other changes to the fund or to the current tax treatment of the fund.

Allfunds fee change

Allfunds Group notified us of a change to their Offshore Funds fees. The change is effective from 1 August 2022 and applies to the following funds:

To help with capital gains reporting, clients can access their statements of transactions on the Discovery app and our secure website in one of the following ways:

Fund name	Current fee	New fee
Threadneedle (LUX) ENH CM Class ZEH (EURHDG)	0.75%	0.15%
Threadneedle (LUX) EN Class ZGH (GBPHDG)	0.75%	0.15%
Threadneedle (LUX) ENH CM Class ZU (USD)	0.75%	0.15%

There are no other changes to the fund or to the current tax treatment of the fund.

Regulation 28 compliance letters

From 14 July 2022, we will send notifications to all clients who did not comply with Regulation 28 at the end of March 2022. We will include their financial advisers in the communication. The notifications will direct them to access their letters in the Secure document vault.

Clients and financial advisers can access their letters in the following ways:

• Clients can log in to our secure website and select INVESTMENTS at the top of the screen. Select Secure document vault. Scroll down and select Secure document vault. The latest letters reflect at the top of the list. The client can also search for Regulation 28 Letter.
• Financial advisers can log in to the Financial Adviser Zone (FAZ), then select YOUR CLIENTS and select Investments. On the side-menu bar, select DOCUMENTS AND REPORTS and select Secure document vault. Search for Regulation 28 Letter.

Global boost on retirement plans letter

The Discovery Global range of portfolios is our risk-profiled multi-asset global investment solution managed with the assistance of BlackRock. Clients invested in the Discovery Global Moderate Portfolio, Discovery Global Growth Portfolio and Discovery Global Conservative Portfolio will receive notifications from 19 July 2022. These notifications instruct them on how they can access their letters on our secure website. The purpose of these letters is to provide clients with an update on the latest value of their investment boosts.

View a copy of the letter.

Financial advisers will also receive an email notification on how to access a copy of the letter on our secure website.

Clients and financial advisers can access their letters in the following ways:

• Clients can log in to our secure website and select INVESTMENTS at the top of the screen. Select Secure document vault. The latest letters reflect at the top of the list. The client can also search for Global boost on retirement plans letter
• Financial advisers can log in to the Financial Adviser Zone (FAZ), then select YOUR CLIENTS and select Investments. On the side menu bar, select DOCUMENTS AND REPORTS and select Secure document vault. Search for Global boost on retirement plans letter.

30 June

M&G High Yield Bond Fund name change

We received notification from M&G about renaming the M&G High Yield Bond Fund to M&G Bond Fund. The name change is effective 15 July 2022.

There are no other changes to the funds or to the current tax treatment of the funds.

2021/2022 international statements of transactions now available

The 2021/2022 statement of transactions to assist with capital gains reporting are now available in the Secure document vault. The statement of transactions is issued to international clients invested in Global Flexible Investments to assist them with calculating their capital gains tax (CGT) reporting for the tax year period. We have sent email notifications and SMSes to clients to let them know that the statements are available.

To help with capital gains reporting, clients can access their statements of transactions on the Discovery app and our secure website in one of the following ways:

• The Discovery app:
  • Clients can download the Discovery app on their smart devices, then log in using the same details they use to log in to the secure website. Once logged in, they must select INVESTMENTS, choose their investment, select Secure document vault and then select the document.
• The Discovery website:
  • Clients must log in to our secure website, www.discovery.co.za. Once logged in, they must select the INVESTMENTS tab at the top of the screen. Clients then select Secure document vault and search for the document or view the latest document.

Updated international application forms

We have updated our international new business application forms. Attached is an application form matrix with information on which forms we've updated. All the new forms will be available on the Financial Adviser Zone (FAZ) from 2 July 2022.

We understand that some people still use the current version of our application forms. Therefore, we will accept the current versions of the forms until 31 July 2022, as shown on the attached matrix. Application forms that you have submitted up until this date are not affected by these changes.

23 June

2021/2022 tax certificates are now available

We have distributed the 2021/2022 tax certificates. They are now available on the Discovery app and our secure website.

Clients can access their certificates in one of the following ways:

• The Discovery app:
  • Clients can download the Discovery app on their smart devices, then log in using the same details they use to log in to the secure website. Once logged in, they must select INVESTMENTS, choose their investment, select Secure document vault and then select the document.
• The Discovery website:
  • Clients must log in to our secure website, www.discovery.co.za. Once logged in, they must select the INVESTMENTS tab at the top of the screen. Clients then select Secure document vault and search for the document or view the latest document.

15 June

New cession forms

We have two new cession forms, which will replace our existing cession form on 25 June 2022.

Cession form - Absolute: The investor must complete this form if the investment's ownership changes. Please submit the fully completed form together with FICA documents for the new investment owner.

Cession form - Collateral: The investor must complete this form if a third party uses the investment as security. This is not a change of ownership.

We understand that some people still use the current forms. Therefore, we will accept the current cession form until 24 June 2022.

The new forms will be available on the Financial Adviser Zone (FAZ) from 15 June 2022.

You can access the forms by logging in to FAZ, Select MARKETING SUPPORT > Invest > Forms > Servicing forms.

09 June

Stonewood funds name change

We received notification from Boutique Collective Investments (BCI) about renaming some of their funds. The name changes applied to the following funds from 1 June 2022.

Old fund name	New fund name
Stonewood AM BCI Diversified Growth Fund Class B	Fibonacci BCI Diversified Growth Fund Class B
Stonewood AM BCI Temperate Fund Class B1	Fibonacci BCI Temperate Fund Class B1

There are no other changes to the funds or to the current tax treatment of the funds.

26 May

POPI secure communications: Encryption update

In line with the Protection of Personal Information (POPI) Act, we are taking every precaution necessary to ensure that we protect our clients' personal information. We introduced the Secure document vault which stores all important Discovery communication in 2019. Clients and their advisers can access the vault on our website, and clients have the added functionality to access the vault by using the Discovery app.

We have now enhanced our second security measure: the encryption of email attachments for system-generated communication. The implementation is scheduled for 27 May 2022 and any attachment that contains personal information (for example, cellphone number and identity number) will be encrypted going forward.

The reader will use a password to open an attachment, this is also known as a decryption key. The decryption key will vary depending on who is receiving the document. The decryption key is listed in the communication. For example, individual investors will use an identity number or date of birth to open a document. For legal entities, a company registration number is required. Financial advisers, broker consultants and franchises, a broker code (BHC) is needed to open attachments.

There are, however, investors who may not be able open their attachments. This may be due to several factors such as:

• Incorrect information that was provided to us
• Information captured incorrectly
• Information not provided at all

These investors need to contact us if they cannot open their attachments.

19 May

Discovery Global Escalator Fund merger

The Discovery Global Escalator Fund uses an algorithm designed by BNP Paribas to dynamically allocate between an underlying risky component and a cash component. We will be merging this Escalator Fund into one with a higher exposure to its respective risky asset and a more diverse asset allocation. This will keep clients from missing out on sharp market rises if they occur.

Clients invested in the Discovery Global Escalator Fund received notifications from 17 May 2022. These notifications instructed them on how they can access their letters on our secure website. The purpose of these letters is to inform them about the merger of the Discovery Global Escalator Fund (with ZAR underpin) into the Discovery Escalator - Discovery Global Multi-Asset Fund. The merger is scheduled to take place on 17 August 2022.

Access a copy of the letter

Financial advisers also received notifications on the same day on how they can access a copy of the letter on our secure website.

Clients and financial advisers can access their letters in the following ways:

• Clients can log in to our secure website and select INVESTMENTS at the top of the screen. Select Secure document vault. The latest letters reflect at the top of the list. The client can also search for Discovery Global Escalator Fund merger letter.
• Financial advisers can log in to the Financial Adviser Zone (FAZ), then select YOUR CLIENTS and select Investments. On the side menu bar, select DOCUMENTS AND REPORTS and select Secure document vault. Search for Discovery Global Escalator Fund merger letter.

Withdrawal illustrations update

The withdrawal illustration function allows financial advisers and clients to generate a variety of withdrawal scenarios for full and partial withdrawals, depending on the product rules. This shows the possible impacts of a withdrawal on the client's assets and unique benefits.

From 23 May 2022, we no longer require a withdrawal illustration for withdrawals on Core Flexible plans. However, we still require withdrawal illustration for partial and full withdrawals for the following products:

• PrimeFlex plans
• Essential and Classic Flexible investments

Clients and financial advisers can request withdrawal illustrations in the following ways:

• Clients can log in to our secure website and select INVESTMENTS tab at the top of the screen. Select Your investment portfolio then scroll down to Illustrations. Under Illustration type select Withdrawal illustrations.
• Financial advisers can log in to the Financial Adviser Zone (FAZ), then select YOUR CLIENTS and select Investments. On the side menu, select Illustrations, Reports and Documents. Then choose Withdrawal.

Ballot: Momentum Focus 4 Fund of Funds amalgamation

Momentum notified us of a ballot, proposing the amalgamation of the Momentum Focus 4 Fund of Funds and the Momentum Focus 5 Fund of Funds.

Access a copy of the ballot letter, which has more information about the ballot and how it will affect investors. Clients started receiving notifications on 17 May 2022. If the ballot is successful, the amalgamation is scheduled for 29 July 2022.

Clients and financial advisers can access the letter in the following ways:

• Clients can log in to our secure website and select INVESTMENTS at the top of the screen. Scroll down and select Secure document vault. The latest letters reflect at the top of the list. The client can also search for Momentum Focus 4 Fund of Funds ballot letter.
• Financial advisers can log in to the Financial Adviser Zone (FAZ), then select YOUR CLIENTS and select Investments. On the side menu bar, select DOCUMENTS AND REPORTS and then select Secure document vault. Search for Momentum Focus 4 Fund of Funds ballot letter.

12 May

Regulatory requirement to update information for minors

As a financial institution, we have a responsibility to make sure that our records are accurate and updated regularly. The Financial Intelligence Centre Act of 2017 (FICA) contains several control measures aimed at detecting and investigating money laundering and terrorist financing. It also imposes specific responsibilities on financial institutions, including Discovery Invest, relating to commencing a business relationship with investors as well as during the lifecycle of the business relationship.

This legislation requires us to update investor records to make sure our information is accurate and up to date. In the past year, we communicated to individuals and legal entities to update their details. We are now focusing on the details of minors and those responsible for them by reaching out to financial advisers to assist us with this process.

Financial advisers received notifications from 6 May 2022, requesting them to assist us in updating information. We have launched a report on the web for all non remediated clients. This will assist advisers in identifying which minors and responsible persons need to update their details. The notification contains step by step instructions on how to access the report on the Financial Adviser Zone (FAZ) and to ensure that the responsible person completes the Identification and verification form: Responsible persons.

We will place restrictions on transactions for policies that are not updated in the next three months. Once the information has been updated, we will remove the restrictions.

Access a copy of the email notification.

It is important to encourage investors to update their information. Your assistance will ensure that we avoid any unnecessary service disruptions to investors.

2021/2022 tax certificates

We are busy working on the tax certificates. We will advise you as soon as the certificates are available on the Discovery app and our secure website.

Discovery Capital 200+ (May 2017 tranche) maturity

Clients currently invested in the Discovery Capital 200+ (May 2017 tranche) will receive notifications from 13 May 2022. These notifications instruct them on how they can access their letters on our secure website. The purpose of these letters is to inform clients about the maturity of the Discovery Capital 200+ (May 2017 tranche).

View a copy of the letter.

Financial advisers will also receive an email notification on how to access a copy of the letter on our secure website.

Clients and financial advisers can access their letters in the following ways:

• Clients can log in to our secure website and select INVESTMENTS at the top of the screen. Select Secure document vault. The latest letters reflect at the top of the list. The client can also search for Discovery Capital 200+ (May 2017 tranche) letter.
• Financial advisers can log in to the Financial Adviser Zone (FAZ), then select YOUR CLIENTS and select Investments. On the side menu bar, select DOCUMENTS AND REPORTS and select Secure document vault. Search for Discovery Capital 200+ (May 2017 tranche) letter.

21 April

Quarterly investment statements available

Our quarterly investment statements for 1 January to 31 March 2022 are now available in the Secure Document Vault. We have sent emails, SMS and push notifications to clients to let them know that the statements are available. Clients can access their statements by logging in to the Discovery app and our secure website.

Clients can access their investment statements in the following ways:

• Log in to our secure website, www.discovery.co.za. Once they're logged in, select the INVESTMENTS tab at the top of the screen, and then select Quarterly investment statement.
• Download the Discovery app on their smart device and log in using the same details they use to log in to our secure website. Once they're logged in, select INVESTMENTS, choose the investment, select Secure document vault and then select Statements.

14 April

Regulation 28 compliance letters

From 14 April 2022, we will send notifications to all clients who did not comply with Regulation 28 at the end of December 2021, and their financial advisers. The notifications will direct them to access their letters in the Secure document vault.

Clients and financial advisers can access their letters in the following ways:

• Clients can log in to our secure website and select INVESTMENTS at the top of the screen. Select Secure document vault. Scroll down and select Secure document vault. The latest letters reflect at the top of the list. The client can also search for Letter: Regulation 28.
• Financial advisers can log in to the Financial Adviser Zone (FAZ), then select YOUR CLIENTS and select Investments. On the side menu bar, select DOCUMENTS AND REPORTS and select Secure document vault. Search for Letter: Regulation 28.

Regulatory requirement to update information for minors

As a financial institution, we have a responsibility to make sure that our records are accurate and updated regularly. The Financial Intelligence Centre Act of 2017 (FICA) contains several control measures aimed at detecting and investigating money laundering and terrorist financing. It also imposes specific responsibilities on financial institutions, including Discovery Invest, relating to commencing a business relationship with investors as well as during the lifecycle of the business relationship.

This legislation requires us to update investor records to make sure our information is accurate and up to date. In the past year, we communicated to individuals and legal entities to update their details. We are now focusing on minors and their responsible person's details by reaching out to financial advisers to assist us with this process.

Financial advisers received notifications from 13 April 2022, requesting them to assist us in updating information. We have launched a report on the web for all non remediated clients. This will assist advisers in identifying which minors and responsible persons need to update their details. The notification contains step-by-step instructions on how to access the report on FAZ and then to ensure that the responsible person completes the Identification and verification form: Responsible persons.

We will place restrictions on transactions for policies that are not updated by 31 May 2022. Once the information has been updated, we will remove the restrictions.

Access a copy of the email notification.

It is important to encourage investors to update their information. Your assistance will ensure we avoid any unnecessary service disruptions to investors.

Non-remediated report is available

The Financial Intelligence Centre Act of 2017 (FICA) requires us to update investor records to make sure our information is accurate and up to date. It also has control measures aimed at detecting and investigating money laundering and terrorist financing. In the past year we have communicated to investors who have not updated their information with us to do so. We have launched a report to indicate which investors have not updated their details. These include individuals, legal entities and minors. The purpose of this report is to provide advisers with a view of all their non remediated clients. By not updating their information, we will restrict certain transactions for these investors.

Advisers can access the report by logging into FAZ > YOUR CLIENTS. Select Investments and then on the side menu bar, select TOOLS. Under Analysis Tools select AML Non-remediated clients.

07 April

Offshore Magna Fund name change

We received notification from Allfunds about renaming some of their funds. The name changes applied to the following funds from 1 April 2022.

Old fund name	New fund name
Magna EM MKTS DVD Class B (GBP	Magna EM Income and Growth Fund Class B (GBP)
Magna EM MKTS DVD Class B (EUR)	Magna EM Income and Growth Fund Class B (EUR)

There are no other changes to the funds or to the current tax treatment of the funds.

23 March

Ocorian will replace ZEDRA as trustee on the Discovery short form offshore trust

Discovery has received notice that ZEDRA will be resigning as the trustee on the short form offshore trust. We have, therefore, entered into an arrangement with another trust company, Ocorian, to take their place as the new trustee on the trust from April 2022. We have used Ocorian on our other offshore structure and are very comfortable that they will be able to provide a high level of service to your clients.

Ocorian will manage the set-up process of a new trust and will require an application form and due diligence documents or information. The application form will be made available upon request from our Invest International team, or our Dollar Life team.

For clients who have an existing trust, we will assist in the move over to Ocorian.

The payback of the Discovery Life Purpose Trust fees will no longer apply to new business when nominating the trust company as a beneficiary. The payback of the Discovery Life Purpose Trust fees will still apply to existing business where the trust is currently nominated.

Please email Harry Joffe, at Harryj@discovery.co.za if you have any queries.

Please email the following for an application form:

• John Felicite at john.felicite@ocorian.com
• Invest_International@discovery.co.za
• dollarlife_servicing@discovery.co.za

Discovery Miles Integrator transfers will happen soon

The Discovery Miles Integrator rewards clients for taking responsibility for their financial future. It provides them with a boost of up to 300% to their Discovery Miles depending on their Vitality status and whether they are on Purple plans or not.

On 25 April 2022, clients will have 100% of their Discovery Miles balance automatically transferred into their Discovery Miles Integrator on their investment. This will only apply to clients who previously elected to transfer their Discovery Miles into their Discovery Miles Integrator. The balance transferred will be up to a maximum of 1 Discovery Mile for every R10 of their lump-sum Retirement or Preserver Plan fund balance. We will distribute the attached letter to affected clients and their financial advisers from 24 March 2022.

Any clients who wish to stop the transfer will need to call the Discovery Invest Contact Centre on 0860 67 57 77 before 21 April 2022 and communicate their decision to a Discovery Invest agent.

10 March

Name change for Sanlam Alternative Vega Funds

Sanlam notified us that they renamed their funds on 1 March 2022. The name changes apply to the following funds:

Current fund name	New fund name
Sanlam Alternative Vega RIHF Class A1	Amplify Sanlam Collective Investments Income Plus Retail Hedge Fund
Sanlam Alternative Veta RIHF Class A1	Amplify Sanlam Collective Investments Diversified Income Retail Hedge Fund

There are no other changes to the portfolios or the current tax treatment of the portfolios.

03 March

Changes to SARS tax directive from March 2022

In December 2021, we communicated the changes that the South African Revenue Service (SARS) will be implementing on tax directives. View these changes.

We will now be sending notifications to impacted clients from 7 March 2022. These notifications will direct them to our secure website and Discovery app where they can access their letters. The purpose of these letters is to inform them about the tax percentage that SARS is applying to their annuity incomes for the March 2022 to February 2023 tax year.

View a copy of the letter.

Clients and financial advisers can access their letters in the following ways:

• Clients can log in to our secure website and select INVESTMENTS at the top of the screen. Scroll down and select Secure document vault. The latest letters reflect at the top of the list. The client can also search for SARS tax directive letter.
• Financial advisers can log in to the Financial Adviser Zone (FAZ), then select YOUR CLIENTS and select Investments. On the side menu bar, select DOCUMENTS AND REPORTS and then select Secure document vault. Search for SARS tax directive letter.

Kagiso Collective Investments (RF) Limited name change

Kagiso Collective Investments (RF) Limited notified us about renaming the company and their funds with immediate effect. The company has been renamed from Kagiso Collective Investments (RF) Limited to Camissa Collective Investments (RF) Limited. The name changes apply to the following funds:

Current fund name	New fund name
Kagiso Islamic Balanced Fund Class B	Camissa Islamic Balanced Fund Class B
Kagiso Islamic Equity Fund Class B	Camissa Islamic Equity Fund Class B
Kagiso Islamic Global Equity Feeder Fund Class B	Camissa Islamic Global Equity Feeder Fund Class B
Kagiso Islamic High Yield Fund Class A	Camissa Islamic High Yield Fund Class A

There are no other changes to the funds or to the current tax treatment of the funds.

17 February

Ballot: Stonewood BCI Guarded Fund amalgamation

Stonewood Asset Management notified us of a ballot proposing the amalgamation of the Stonewood AM BCI Guarded Fund and the Stonewood AM BCI Temperature Fund.

Access a copy of the ballot letter which has more information about the ballot and how it will affect investors.

Clients received notifications from 15 February 2022. If the ballot is successful, the amalgamation will be scheduled for 29 April 2022. Clients and financial advisers can access their letters in the following ways:

• Clients can log in to our secure website and select INVESTMENTS at the top of the screen. Scroll down and select Secure document vault. The latest letters reflect at the top of the list. The client can also search for Stonewood BCI Guarded Fund ballot letter.
• Financial advisers can log in to the Financial Adviser Zone (FAZ), then select YOUR CLIENTS and select Investments. On the side menu bar, select DOCUMENTS AND REPORTS and then select Secure document vault. Search for Stonewood BCI Guarded Fund ballot letter.

10 February

Enhanced fraud controls on withdrawal transactions

Protecting our clients and safeguarding their investments are top priorities for us. Due to an increased number of fraud attempts affecting financial institutions, Discovery Invest has enhanced our fraud controls with immediate effect. For payments exceeding R100,000 and for payments from policies where personal details were changed within the last six months, we will call the client to get verbal confirmation that:

• The client is aware of their withdrawal and the transaction is valid.
• The client is satisfied that their banking details, cellphone number and email address we've received are correct.

If Discovery Invest is unable to contact the client directly to verify the withdrawal, we will ask the financial adviser to contact the client on our behalf. The financial adviser will tell their client to expect a verification call from Discovery Invest.

As an additional measure, we will also validate banking details, cellphone numbers and email addresses through third party service providers. If the information cannot be validated, we will communicate with the financial adviser's office, client, or both if required.

Keeping client information up to date

It's essential for clients to provide their banking details, cellphone numbers and email addresses at new business stage.

We use this information to communicate with the client to tell them of the availability of their policy schedule, investment statements and other important documents. This information is also used as a critical part of our fraud control process as we notify clients of activity on their investments, such as withdrawals.

It's easy to use the Discovery website

Clients and financial advisers can update banking details, cellphone numbers and email addresses for existing clients by using the Discovery website. If the client or financial adviser makes changes using the Discovery website, the changes are processed immediately. Should clients or advisers need assistance with online processing, please contact our Contact Centre on 0860 33 33 62.

However, we will call the client directly to verify the details if:

• Changes made to banking details, cellphone numbers or email addresses are submitted to head office using manually completed forms
• We identify a difference in detail during the processing of a withdrawal.

We will ask for verbal confirmation that the client is:

• Aware of the policy details update and the request is valid
• Satisfied the details submitted are valid.

Note that we will also validate banking details, cellphone numbers and email addresses through third party service providers. If the information cannot be validated, we will communicate with the financial adviser's office, the client, or both if required.

3 February

Regulatory requirement to update client information

As a financial institution, we have a responsibility to ensure that our investors' records are accurate and updated regularly. The Financial Intelligence Centre Act of 2017 (FICA) contains a number of control measures aimed at detecting and investigating money laundering and terrorist financing. It also imposes specific responsibilities on financial institutions, including Discovery Invest, relating to commencing a business relationship with a client as well as during the lifecycle of the business relationship.

This legislation requires us to update the policyholder records to ensure the information is accurate and up to date. In previous years, we wrote to our investors asking them to update their information with us.

There are still investors who have not updated their details with us. These investors will receive notifications from 4 February 2022, instructing them on how they can access their letters on our secure website. The purpose of these letters is to inform them about the transaction restrictions placed on their policies. The letter contains step-by-step instructions on how investors can update their details through our website, Discovery app or by completing a form.

It is important to encourage investors to update their details. Your assistance will ensure we avoid any unnecessary service disruptions to your clients.

27 January

Annual trustee report and pre-retirement letter

The annual trustee report and pre-retirement notice are available on our secure website. These are required in terms of the Default Regulations to the Pension Funds Act for all members electing to retire from the fund in 2022.

Information included in the:

• Annual trustee report - covers the retirement funds, its trustees and the activities of the fund over the last financial year of the funds.
• Pre retirement notice covers the options available to members who are electing to retire from the funds' tax on their benefit and purchasing an annuity.

Members of the funds received an SMS notification from 21 January 2022 confirming the availability of the report and the pre-retirement notice on our secure website.

You and your clients can log in to our secure website to access these documents:

• Clients: Select INVESTMENTS > Your investment portfolio. The communication is available under Link and Tools menu on the right hand side on the screen. Select the Trustee Report or the Pre-retirement letter.
• Financial advisers: At the top of the screen select YOUR CLIENTS > Investments. Then select Tools on the left hand side menu. The communication is available under About Funds, select the Trustee Report or the Pre-retirement letter.

International claims process and service level agreements

Discovery Invest International endeavours to settle all claim payments as soon as possible. The claim process involves a few steps, and many processes are dependent on a third party. We have included a one page brochure that indicates a step-by-step process of the tasks involved and the timelines that apply to a claim instruction.

Janus Henderson Latin America ACC Class H (EUR) fund closure

Allfunds notified us that the existing Janus Henderson Latin America ACC Class H (EUR) fund closed on 14 January 2022. We capped the fund for new business and fund switches on the same day. Allfunds is planning to merge the Janus Henderson Latin America ACC Class H (EUR) fund. We will provide further details on the merger once we receive confirmation from Allfunds.

20 January

Discovery Enhanced Yield Fund (January 2020 tranche) performance

Clients who completed their second year of investment in the Discovery Enhanced Yield Fund (January 2020 tranche) received notifications from 14 January 2022. These notifications instruct them on how they can access their letters on our secure website. The purpose of these letters is to inform clients about the performance of this Discovery Enhanced Yield Fund (January 2020 tranche). View a copy of the letter.

Financial advisers also received an email notification on how to access a copy of the letter on our secure website.

Clients and financial advisers can access their letters in the following ways:

• Clients can log in to our secure website and select INVESTMENTS at the top of the screen. Select Secure document vault. Scroll down and select Secure document vault. The latest letters reflect at the top of the list. The client can also search for Discovery Enhanced Yield Fund (January 2020 tranche).
• Financial advisers can log in to the Financial Adviser Zone (FAZ), then select YOUR CLIENTS and select Investments. On the side menu bar, select DOCUMENTS AND REPORTS and select Secure document vault. Search for Discovery Enhanced Yield Fund (January 2020 tranche).

Availability of quarterly investment statements

Our quarterly investment statements for 1 October to 31 December 2021 are now available in the Secure document vault. Clients can access their statements by logging in to the Discovery app and our secure website. We have sent emails, SMSs and push notifications to clients to let them know that the statements are available.

Regulation 28 compliance letters

Clients who did not comply with Regulation 28 as at the end of September 2021, received notifications from 17 January 2022. We have also advised their financial advisers. These notifications will direct them to access their letters in the Secure document vault.

Clients and financial advisers can access their letters in the following ways:

• Clients can log in to our secure website and select INVESTMENTS at the top of the screen. Select Secure document vault. Scroll down and select Secure document vault. The latest letters reflect at the top of the list. The client can also search for Letter: Regulation 28.
• Financial advisers can log in to the Financial Adviser Zone (FAZ), then select YOUR CLIENTS and select Investments. On the side menu bar, select DOCUMENTS AND REPORTS and select Secure document vault. Search for Letter: Regulation 28.

Momentum Top 40 Index Fund amalgamation

We received confirmation from Momentum about the successful ballot to merge the Momentum Top 40 Index Fund and the Momentum Capped Swix Index Fund. The merger came into effect on 10 December 2021.

There are no other changes to the funds or to the current tax treatment of the funds.

9 December

SIM Active Income Fund name change

We received notification from Sanlam about the successful ballot to rename the Sanlam Investment Management (SIM) Active Income Fund Class B3 to the SIM SA Active Income Fund Class B3. The name change came into effect on 1 December 2021.

There are no other changes to the funds or to the current tax treatment of the funds.

Impact of IBM Kyndryl splitoff on Discovery Capital 200+

The Discovery Capital 200+ is a five year product that provides clients with exposure to a global share portfolio consisting of 20 established European and US shares. Clients can get growth¹ of 100%, before the effect of fees and taxes, over five years if the global share portfolio is flat or goes up by as little as 1%.

IBM is one of the twenty shares that make up each of the underlying global share portfolios in the following Capital 200+ tranches. Each underlying global share portfolio has 3% invested in IBM.

	Exposure to IBM
Discovery Capital 200+ December 2020	3%
Discovery Capital 200+ April 2021	3%
Discovery Capital 200+ July 2021	3%
Discovery Capital 200+ October 2021	3%

From 4 November 2021, IBM separated from Kyndryl. Because of this split, in the above-mentioned tranches, the share basket's performance for the IBM from 4 November 2021 will be calculated as:

New IBM share price performance = IBM share price performance+(0.2 x Kyndral share price performance)

This does not impact the payoff structure or the guarantees of any of the Discovery Capital 200+ tranches.

2 December

Industry of client

Anti-money laundering (AML) legislation, such as the Financial Intelligence Centre Act 38 of 2001(as amended) (FICA), mandates that Discovery identifies and verifies its clients and the clients' beneficial owners where applicable. This is in keeping with Know Your Client (KYC). A risk assessment of the business relationship is also required to implement the appropriate level of due diligence in comparison with the assessed risk.

This risk assessment involves a multi-factor analysis. The following factors are considered:

• Industry that the client operates in
• Occupation of the client
• Country or geographic location in which the client is based
• Current and potential products.

'Industry' refers to the economic sector in which a client is involved. One way to define an industry is to use an industry classification system, view Discovery's industry list. To determine the industry of the client, we must assess what the client's principal activity or market relates to, that is, how the client generates an income or creates wealth.

Discovery uses a risk matrix (manual process) called Actimize. This is the AML System to objectively assess the risk of a client.

The economic sector in which a client or transaction is involved informs the level of risk.

Clients are also screened against the politically exposed person (PEP) criterion, adverse media and sanctions lists. Screening matches will contribute to the client's risk score.

Amity BCI Steady Growth Fund name change

We received notification from Boutique Collective Investments (BCI) about the successful ballot to rename the Amity BCI Steady Growth Fund Class A to the Amity BCI Steady Growth Fund of Funds. The name change came into effect on 1 December 2021.

There are no other changes to the funds or to the current tax treatment of the funds.

25 November

Retirement Investment Integrator letter

The Retirement Investment Integrator is a benefit that gives clients tiered discounts of up to 100% on all their fees. Clients invested in the Global Discovery Retirement Optimisers (DRO) could be at risk of losing this benefit depending on the size of their Life Plan Premium. From 24 November 2021, we began sending notifications to affected clients and their financial advisers. These notifications direct clients and advisers to access the letter in the secure document vault.

Access a copy of the letter.

Clients and financial advisers can access their letters as follows:

• Clients can log in to our secure website and select INVESTMENTS at the top of the screen. Select Secure document vault. Scroll down and select Secure document vault. The latest letters show at the top of the list. The client can also search for Retirement Investment Integrator letter.
• Financial advisers can log in to the Financial Adviser Zone (FAZ), then select YOUR CLIENTS and select Investments. On the side menu bar, select DOCUMENTS AND REPORTS and select Secure document vault. Search for Retirement Investment Integrator letter.

18 November

Changes to the Discovery Retirement Optimiser and our recurring Retirement Annuity

Minimum monthly contributions for new business

Discovery Invest has kept its minimum contributions at an affordable level to ensure the product range remains accessible. To ensure relevance of the product in an inflationary environment, the minimum contributions on the Discovery Retirement Optimiser and recurring retirement annuities have been increased. Where the term to the selected retirement date on these products is 15 years or longer, we will increase the minimum monthly contribution from R500 to R600. All the other minimums will remain unchanged.

Minimum inflation linked contribution increase for recurring Retirement Annuities and Group Retirement Annuities

To ensure that regular savings levels continue to grow in the current low inflation environment, the minimum inflation-related automatic contribution increase will be 5%. This means that if a client chooses an automatic contribution increase in line with CPI (Consumer Price Index), and CPI is lower than 5%, the contribution will increase by 5%.

Who do these changes apply to?

The changes will apply to new business sold after 3 December 2021, as well as to any upgrades to the latest product versions of these two products. Importantly, all the unique market-leading features such as the Life Plan Optimiser, Contribution boosts, fee discounts and PayBack boosters are still available to ensure your clients have the best retirement solution available in the market.

New and redesigned Death and ill-health claim Payment forms

We have redesigned the Death and Ill Health Early Retirement claim payment forms with a more structured look and feel. The redesigned as well as the new payment forms are now available on the Financial Adviser Zone (FAZ).

Death Claim forms

• The Death Claim form for discretionary and living annuity products replaces the existing Death Claim Form.
• The Death Claim form for products governed by Pension Funds Act replaces the existing Section 37C Death Claim Form.

Supplementary Death Claim forms

These are only required for certain products and circumstances, so the Invest Payments Team will confirm if these are needed when they receive the death certificate:

• The Death Claim Form: Statement by Police replaces the existing Statement by Police.
• The Death Claim Form: Certificate of Medical Attendant replaces both the existing Claims Medical Questionnaire (CMQ) and the existing Certificate of Medical Attendant (CMA).

Ill Health Early Retirement Claim Forms

• The Ill Health Early Retirement: Claim Form replaces the existing Confirmation of Ill Health Form

Optional Supplementary Ill Health Early Retirement claim forms:

The claimant must send in their own medical reports and information to substantiate their claim and this must be at their own cost. To help the claimant send the correct information, we have designed the following forms which they can use if needed:

• Ill Health Early Retirement: Medical Certificate
• Ill Health Early Retirement: Employers Declaration

You can access the forms by logging in to FAZ. Select MARKETING SUPPORT > Invest > Forms > Payment forms > Death and ill health claim forms.

From 1 January 2022, we will not accept the old versions of the new and redesigned forms.

Stonewood AM fund name change

Following the success of the ballot to move from Ci Collective Investments to BCI, Stonewood notified us that they renamed their funds on 8 November 2021. The name changes apply to the following funds:

There are no other changes to the portfolios or to the current tax treatment of the portfolios.

Prudential funds name change

Prudential notified us that they renamed their Prudential Portfolio Managers Unit Trust Limited to M&G Unit Trust South Africa Limited abbreviated as M&G on 15 November 2021. The name of the Management company and fund changes apply to the following funds:

There are no other changes to the portfolios or to the current tax treatment of the portfolios.

4 November

Ensure you have the latest forms

Our latest forms are available on the Financial Adviser Zone (FAZ). We update forms for product enhancements and regulatory disclosure changes, and for improving the client experience. When this is done, older forms become outdated and invalid. We, therefore, encourage you to always use the latest forms from FAZ to avoid your transaction request being rejected.

We have updated the terms and conditions to the Group Retirement Annuity switch form, International Switch form and Local Switch form. The updated forms are available on FAZ. We will accept the current version of these forms until 29 November 2021.

28 October

Living Annuity process for upgrades

Discovery Invest recently launched a new version of the Living Annuity. On the previous version of the Living Annuity, the income boost was based partially on Vitality Health Goals. The latest version is based on the investor's Vitality status and income drawdowns. On this latest version, clients can now also receive the Income Boost on non qualifying funds.

There are two ways the previous Living Annuity can be upgraded to the latest version:

Automatic upgrades

• The automatic upgrade process went live on the 1 October 2021.
• The automatic upgrade process is based on the anniversary date of the client's Living Annuity.
• Therefore, the automatic upgrades will be done on the first anniversary date on or after 1 October 2021.

Manual upgrades

If the client would like to upgrade before the anniversary date of their Living Annuity, they can download the Upgrade letter through our website. They can use this to send in a manual upgrade request. Clients that are on the earlier version of the Living Annuity and would not qualify for the automatic upgrade can also upgrade through the manual upgrade process.

The completed Upgrade request letter must be returned to invest_servicing_support@discovery.co.za

Fixed Retirement Income Plan current offer letter

From 27 October 2021, we began to send notifications to all clients who qualified for the additional income current offer. This offer provides them with 10% additional income on each income payment date for the first two years of their policy. Financial advisers also received notifications on the same day. These notifications direct advisers and clients to access these letters in the secure document vault.

Access a copy of the letter

Clients and financial advisers can access their letters as follows:

• Clients can log in to our secure website and select INVESTMENTS at the top of the screen. Select Secure document vault. Scroll down and select Secure document vault. The latest letters show at the top of the list. The client can also search for Fixed Retirement Income Plan limited offer letter.
• Financial advisers can log in to the Financial Adviser Zone (FAZ), then select YOUR CLIENTS and select Investments. On the side menu bar, select DOCUMENTS AND REPORTS and select Secure document vault. Search for Fixed Retirement Income Plan limited offer letter.

21 October

Quarterly investment statements available

Our quarterly investment statements for 1 July to 30 September 2021 are now available in the Secure document vault. Clients can access their statements by logging in to the Discovery app and our secure website. We have sent emails and SMS notifications to clients to let them know that the statements are available.

Attooh funds name change

Financial services group Attooh notified us that they are renaming their model portfolios starting immediately. The name changes apply to the following model portfolios or fund names:

There are no other changes to the portfolios or to the current tax treatment of the portfolios.

How the IT system security breach at the Department of Justice and Constitutional Development could affect your clients

We've been notified of an IT system security breach at the Department of Justice and Constitutional Development. This breach has affected our services to clients.

Possible delays with servicing of claims

The security breach has led to all information systems being encrypted and unavailable to internal employees of the department and members of the public. This means that several services will be delayed.

Impact on Discovery Invest clients - Letters of Executorship

As a result of this breach, all electronic services have been impacted, including the issuing of letters of authority.

We expect delays with the issuing of Letters of Executorship, which are required to process claims for deceased estates. This will affect the time taken to finalise these claims.

We await further communication from the Department of Justice and Constitutional Development and will let you know of any updates we receive.

14 October

Regulation 28 compliance letters

From 14 October 2021, we will send notifications to all clients who did not comply with Regulation 28 at the end of June 2021, and their financial advisers. The notifications will direct them to access their letters in the secure document vault.

Access copy of the letter.

Clients and financial advisers can access their letters as follows:

Ballot: Momentum Top 40 Index Fund amalgamation

Momentum notified us of a ballot proposing the amalgamation of the Momentum Top 40 Index Fund and the Momentum Capped SWIX Index Fund.

Access a copy of the ballot letter that has more information about the ballot and how it will affect investors. If the ballot is successful, the amalgamation is scheduled for 10 December 2021.

Clients will receive notifications from 14 October 2021 with instructions on how they can access a copy of this letter on our secure website.

Clients and financial advisers can access their letters as follows:

7 October

The Alpha list is now available

The latest update of the Alpha list, your comprehensive guide to selecting external funds on the Discovery local platform is now available on the Invest Adviser Portal > TOOLS > About Funds. Be sure to give it a read!

Enhancements to our withdrawal illustrations

Over a year ago, we communicated the enhancement of our withdrawal illustrations for all Discovery Invest products. The new functionality allows users to generate a variety of withdrawal illustrations for full or partial withdrawals, depending on the product rules. These enhancements include significant improvements in illustrating the possible impacts of a withdrawal on the client's assets and unique benefits.

We decided on a staggered approach for the enhancements to our withdrawal illustrations. We began with releasing the enhanced Endowment Plan and Discovery Retirement Optimiser - Endowment illustrations in March 2020.

This was followed by the Pension and Provident Preserver Plans, Retirement Annuity Plans and Discovery Retirement Optimiser Retirement Annuity Plans in November 2020. On 20 March 2021, we made illustrations available to PrimeFlex plans.

On 17 September 2021, Flexible Investment Plans (Core, Classic, Essential), Tax free Flexible Investment Plans and Standalone DRO Endowment were also made available on this enhanced platform.

Our amended business process requires clients to sign a withdrawal illustration before we process any withdrawal instructions. These illustrations will be available online for quick and easy access: INVESTMENTS > Your investment portfolio > scroll down to Illustrations > Under Illustration type select Withdrawal illustrations

• Clients can log in to our secure website and select INVESTMENTS at the top of the screen. Select Secure document vault. Scroll down and select Secure document vault. The latest letters show at the top of the list. The client can also search for Fixed Retirement Income Plan limited offer letter.
• Financial advisers can log in to the Financial Adviser Zone (FAZ), then select YOUR CLIENTS and select Investments. On the side menu bar, select DOCUMENTS AND REPORTS and select Secure document vault. Search for Fixed Retirement Income Plan limited offer letter.
  • Clients can log in to our secure website and select INVESTMENTS at the top of the screen. Select Secure document vault. Scroll down and select Secure document vault. The latest letters show at the top of the list. The client can also search for Letter: Regulation 28.
  • Financial advisers can log in to the Financial Adviser Zone (FAZ), then select YOUR CLIENTS and select Investments. On the side menu bar, select DOCUMENTS AND REPORTS and select Secure document vault. Search for Letter: Regulation 28.
  • Clients can log in to our secure website and select INVESTMENTS at the top of the screen. Scroll down and select Secure document vault. The latest letters reflect at the top of the list. The client can also search for Momentum Top 40 Index Fund ballot letter.
  • Financial advisers can log in to the Financial Adviser Zone (FAZ), then select YOUR CLIENTS and select Investments. On the side menu bar, select DOCUMENTS AND REPORTS and then select Secure document vault. Search for Momentum Top 40 Index Fund ballot letter.

23 September

Changes to Escalator funds

In June 2021, we communicated the merger plan of certain Escalator funds. The first merger took place on 15 July 2021 where the Discovery Life Escalator - Foord Equity Fund was merged into the Discovery Life Escalator - Discovery Balanced fund. This was followed by a second merger which commenced on 15 September 2021. From 20 October 2021, the third merger will begin. Clients received notifications from 20 September 2021. On the same day financial advisers also received notifications with instructions on how they can access a copy of this letter on our secure website.

Access a copy of the letter.

Clients and financial advisers can access their letters in the following ways:

• Clients can log in to our secure website and select INVESTMENTS at the top of the screen. Select Secure document vault. Scroll down and select Secure document vault. The latest letters reflect at the top of the list. The client can also search for Discovery Escalator fund changes letter.
• Financial advisers can log in to the Financial Adviser Zone (FAZ), then select YOUR CLIENTS and select Investments. On the side menu bar, select DOCUMENTS AND REPORTS and then select Secure document vault. Search for Discovery Escalator fund changes letter.

16 September

International Onboarding process document

Here is our updated International Onboarding process document. The document includes our new partner details to assist you in making the forex process easier. The document highlights the process when applying for forex and contains the contact information of our partners.

You can also access the document on FAZ by logging in and clicking on MARKETING SUPPORT > On the left hand side select Invest > About Discovery Invest > scroll down to Rules & Procedures > Invest International onboarding process.

Ballot: Amity BCI Steady Growth Fund

Boutique Collective Investments (BCI) notified us of a ballot that proposes the amendment of the investment policy of the Amity BCI Steady Growth Fund to a funds of funds portfolio.

The ballot letter has more information about the reasons for amending the investment policy and how it will affect investors.

We will distribute the ballot letters to affected investors from 14 September 2021. If the ballot is successful, the amalgamation is scheduled for 1 December 2021.

Ballot: SIM Active Income Fund

Sanlam Investment Management (SIM) notified us of a ballot proposing the amendment of the investment policy of SIM Active Income Fund. The amendment is to explicitly state that the portfolio will only invest in South African assets.

Sanlam is further proposing to align the name of the portfolio with the investment policy, resulting in a name change from Sanlam Investment Management Active Income Fund to Sanlam Investment Management SA Active Income Fund.

The ballot letter has more information about the ballot and how it will affect investors.

We will distribute the ballot letters to affected investors from 16 September 2021. If the ballot is successful, the amalgamation is scheduled for 1 December 2021.

Ballot update: Coronation Optimum Growth Fund

We received confirmation from Coronation about the success of their ballot to rename the Coronation Optimum Growth Fund. Effective 15 September 2021, the Coronation Optimum Growth Fund Class P will be renamed to Coronation Global Optimum Growth Feeder Fund.

There are no other changes applicable.

2 September

Ballot: Stonewood AM Ci Guarded Fund amalgamation

Collective Investments (Ci) notified us of a ballot proposing the amalgamation of the following funds:

• Stonewood AM Ci Guarded Fund and the Stonewood AM BCI Guarded Fund.
• Stonewood AM Ci Temperate Fund and the Stonewood AM BCI Temperate Fund.
• Stonewood AM Ci Diversified Growth Fund and the Stonewood AM BCI Diversified Growth Fund.

View the ballot letter which has more information about the ballot and how it will affect investors.

On 30 August 2021 we began distributing the ballot letters to the affected investors. If the ballot is successful, the amalgamation is scheduled for 5 November 2021.

26 August

Changes to Escalator funds

In June 2021, we communicated the merger plan of certain Escalator funds. The first merger took place on 15 July 2021 where the Discovery Life Escalator - Foord Equity Fund was merged into the Discovery Life Escalator - Discovery Balanced Fund. The next set of mergers will take place from 15 September 2021 and clients will receive notifications from 26 August 2021. On the same day, financial advisers will also receive a notification with instructions on how they can access a copy of this letter on our secure website.

Access a copy of the letter.

Clients and financial advisers can access their letters in the following ways:

• Clients can log in to our secure website and:
  • Select INVESTMENTS at the top of the screen. Select Secure document vault. Scroll down and select Secure document vault.
  • The latest letters reflect at the top of the list. The client can also search for Discovery Escalator fund changes letter.
• Financial advisers can log in to the Financial Adviser Zone (FAZ), then:
  • Select YOUR CLIENTS and select Investments. On the side menu bar, select DOCUMENTS AND REPORTS and then select Secure document vault. Search for Discovery Escalator fund changes letter.

19 August

Reiteration of rules on internal Section 14 transfers

Business rules in place since March 2018 govern the payment of boosts. Money invested in a lump-sum Core or Classic Retirement Annuity will not qualify for any form of Retirement Upfront Investment Integrator (boost) if the money originated from one of the following:

• A recurring-contribution Retirement Annuity, Group Retirement Annuity and Discovery Retirement Optimiser policy where we paid upfront commission
• A lump-sum Core or Classic Retirement Annuity that had the Boost Accelerator benefit selected.

SmartAdvice and the application forms require that clients disclose whether the above applied. If incorrect information is given, Discovery Invest will remove the boosts after the policy commences.

12 August

Offshore fund: Franklin Mutual Beacon name change

All funds notified us that they are renaming their fund with immediate effect. The name change applies to the following fund:

There are no other changes to the fund or to the current tax treatment of the fund.

5 August

Discovery Enhanced Yield Fund (July 2018 tranche) performance

Clients currently invested in the Discovery Enhanced Yield Fund (July 2018 tranche) received notifications from 5 August 2021 to access their letters in the Secure document vault. The letter informs them of the performance of this fund.

On the same day, financial advisers received an email notification on how to access a copy of the client letter.

Clients and financial advisers can access their letters in the following ways:

• Clients can log in to our secure website and select INVESTMENTS at the top of the screen. Select Secure document vault. Scroll down and select Secure document vault. The latest letters reflect at the top of the list. The client can also search for Fund letter: Discovery Enhanced Yield (July 2018 tranche).
• Financial advisers can log in to the Financial Adviser Zone (FAZ), then select YOUR CLIENTS and select Investments. On the side menu bar, select DOCUMENTS AND REPORTS and then select Secure document vault. Search for Fund letter: Discovery Enhanced Yield (July 2018 tranche).

29 July 2021

Living Annuity upgrades

Please note that due to some unforeseen hurdles, upgrades to the latest version of the Living Annuity are delayed until 13 September 2021. The automatic upgrades for clients on the previous version (with the income boost based partially on Vitality Health goals) will still go forward from 1 October 2021.

If you want to find out more about the features and enhancements to our latest living annuity:

• Download the April 2021 Discoverer
• Download the Living Annuity product pack
• Watch the recorded training presentation on the Discovery Institute of Training (DIT) portal.

22 July 2021

Availability of quarterly investment statements

Our quarterly investment statements for 1 April to 30 June 2021 are now available in the Secure document vault. Clients can access their statements by logging in to the Discovery app and our secure website. We have sent emails and SMS notifications to clients to let them know that the statements are available.

15 July 2021

Regulation 28 compliance letters

From 15 July 2021, we will send notifications to all clients who did not comply with Regulation 28 at the end of March 2021, and their financial advisers. The notifications will direct them to access their letters in the Secure document vault.

Clients and financial advisers can access their letters in the following ways:

• Clients can log in to our secure website and select INVESTMENTS at the top of the screen. Select Secure document vault. Scroll down and select Secure document vault. The latest letters reflect at the top of the list. The client can also search for Letter: Regulation 28.
• Financial advisers can log in to the Financial Adviser Zone (FAZ), then select YOUR CLIENTS and select Investments. On the side menu bar, select DOCUMENTS AND REPORTS and select Secure document vault. Search for Letter: Regulation 28.

Clients have until 15 August 2021 to submit their switch instructions. Investments that are not compliant on 15 August 2021 may be switched into the Discovery Cautious Balanced Fund until we receive a completed switch instruction. Switch instructions may be submitted either online or by completing a Switch Request form. To access the form, log in to FAZ > MARKETING SUPPORT > Under Support documents, select Invest > Forms > Servicing forms.

SA Asset Management Performance fee and benchmark name change

Boutique Collective Investments (BCI) notified us that they are changing the benchmark and removing the performance fees on the following funds with immediate effect:

There are no other changes to the portfolios or to the current tax treatment of the funds.

BL-Global 75 Fund update

Allfunds notified us about the restructuring and split of the BL-Global 75 Fund. We closed this fund on 12 July 2021 and have already capped it for new business and fund switches.

The new fund which has been renamed as follows will be available for investment from 19 July 2021:

There are no other changes to the fund or to the current tax treatment of the fund.

8 July 2021

Invest Adviser Portal enhancements

We've enhanced the design and features in the Invest Adviser Portal to make navigation easier and more efficient. With these enhancements, it will be simpler for advisers to service their clients and ensure safe and secure collaboration.

The following enhancements are available from 2 July 2021:

1. New Quick links
   • Once logged in, advisers must select CLIENTS on the blue menu bar on the left hand side. The QUICK LINKS feature is available on this page on the far right hand side, we introduced new quick links for easy access.
2. Portfolio review report
   • This is currently available on the Adviser dashboard. We have now created it on clients' individual profiles. Advisers can access it in the client's profile under the DOCUMENTS AND REPORTS side menu bar.
3. Assistant enabler
   • This feature is a now available on the DASHBOARD landing page.
4. Secure document vault
   • The functionality of Invest's Secure document vault remains the same. We have made slight tweaks to the look and feel of the screens.

Apart from the above changes, we have also re introduced the Export button. This was available on the old Invest Adviser Portal; we have now added it to the new portal.

To access the Invest Adviser Portal, advisers must log in to the Financial Adviser Zone and select Your Clients > Investments.

1 July 2021

Linking Life Plans with a cession to DROs no longer allowed

Please note we have removed the option to link a Life Plan with an absolute or collateral cession to a Discovery Retirement Optimiser. The linking of Life Plans with a collateral cession to a Discovery Retirement Optimiser may be considered as an exception to this rule provided:

To apply for an exception with Discovery Life Servicing, please email your DCS office or DFC Servicing team.

• The owner of the Life Plan and the Discovery Retirement Optimiser are the same
• It can be demonstrated that the cessionary will not be impacted by any Life Fund reductions from the Life Plan Optimiser. This will be determined on a case by case basis.

24 June 2021

Candriam Sustainable Equity Fund closure

Allfunds notified us that the existing Candriam Sustainable Equity Europe Class I (EUR) closed on 15 June 2021. The fund has already been capped for new business and fund switches. We have renamed Candriam Sustainable Equity Europe Class I (EUR) fund to the Candriam Sustainable Equity Europe Class I (EUR) - Pre-Split effective 21 June 2021.

The new Candriam Sustainable Equity Europe Class I (EUR) - Pre-Split became available for investment from 21 June 2021. There are no other changes to the fund or to the current tax treatment of the fund.

27four fund name changes

27four notified us that they have renamed their funds. The name changes apply to the following funds:

There are no other changes to the funds or to the current tax treatment of the funds.

Offshore fund closures

We are closing the following Offshore funds with immediate effect because the funds are not accumulating share classes. The funds have already been capped for new business and fund switches.

• iShares Developed Markets Property Yield UCITS ETF Class A
• iShares Nikkei 225 Class A
• PIMCO US Dollar Short Maturity Source UCITS ETF Class A

We are replacing the funds listed above with the following funds which are accumulating share classes:

• iShares Developed Markets Property Yield UCITS ETF USD (Acc)
• iShares Nikkei 225 UCITS ETF JPY Acc
• PIMCO Low Average Duration "I" Acc

There are no other changes to the funds or to the current tax treatment of the funds.

17 June 2021

Upgrading to the latest Discovery Living Annuity

Clients on version three of our living annuity will be automatically upgraded to the latest version on their first policy anniversary following
1 October 2021. If clients on other versions want to upgrade or clients on version three want to upgrade sooner, manual upgrades will be available from 1 August 2021. Please note that in the interim, we have suspended all Living Annuity upgrades.

If you want to find out more about the features and enhancements to our latest living annuity:

• Download the April 2021 Discoverer
• Download the Living Annuity product pack
• Watch the recorded training presentation on the DIT portal.

Update of maximum contribution on Recurring Endowment and Discovery Retirement Optimiser

The current maximum contribution used for upfront initial advice fees on Recurring Endowment and Discovery Retirement Optimiser plans is R30 000. From 18 June 2021, we will increase this amount to R35 000.

The current business rules will remain the same, the only difference is the change in amount. The following is a reminder of the business rules.

Recurring Endowment

The upfront initial advice fee basis is not available on contribution amounts above R35 000 a month. Clients who would like to contribute more than R35 000, can:

• Load the entire amount under the ongoing fee on a 5% advice fee basis (as-and-when option)
• The excess amount as a separate Endowment or Retirement Plan under the ongoing fee on a 5% advice fee basis (as-and-when option).

The R35 000 limit applies to multiple policies submitted for a single investor under the upfront initial advice fee basis, where the policies have a combined monthly contribution above R35 000.

Discovery Retirement Optimiser

We removed the R35 000 upfront initial advice fee from SmartAdvice quotes for new business and servicing Discovery Retirement Optimiser. This means you can quote recurring contributions equal to or greater than R35 000. The first R35 000 recurring monthly contribution, paid as a lump sum, will qualify for a financial adviser initial advice fee. For contributions above R35 000, we only pay an advice fee on the excess amount after we have received each contribution for five years.

Note: Only one active Discovery Retirement Optimiser Plan may be linked to a single Discovery Life Plan at any time.

2020/2021 tax certificates are now available

Our tax certificates for the 2020/2021 tax year are now available on our Discovery app and website. Clients will receive their tax certificates by email, alternatively they can access them in the following ways:

• The Discovery app:
  • Download the latest version of the Discovery app. Navigate to Investments and retirement savings and tap on it, select Secure document vault > Tax. Select the relevant tax certificate.
• The Discovery website:
  • Select the INVESTMENTS tab at the top of the screen, then click on Secure document vault > Tax. Select the relevant tax certificate.

Changes to Escalator funds

Clients currently invested in certain Discovery Escalator funds received letters from 8 June 2021. The purpose of these letters was to notify them about the proposed merger/changes taking place with these funds, namely the funds into which they will be merged, as well as the reason for these mergers. The first Escalator fund to be merged is the Discovery Life Escalator - Foord Equity Fund, which will be merged into the Discovery Life Escalator - Discovery Balanced Fund on 15 July 2021. We will communicate more details regarding the other mergers in the coming months.

Access a copy of the letter.

On the same day, financial advisers received an email with instructions on how they can access a copy of this letter on our secure website. To access the letter:

1. Log in to the Financial Adviser Zone (FAZ)
2. Click YOUR CLIENT
3. Select Investments
4. On the side menu bar, select DOCUMENTS AND REPORTS
5. Click on SECURE DOCUMENT VAULT
6. Search for the letter by entering the letter name - Fund letter: Discovery Escalator funds; the client name or investment number.

10 June 2021

Update: Withdrawals on retirement annuities with an investment value between R7 000 and R15 000

In the budget speech for 2021/2022, an important change was announced for members of retirement annuity funds. The withdrawal amount has been changed from R7 000 to R15 000. In our previous communication Discovery Invest advised that we were waiting for the increased amount of R15 000.00 to be promulgated into law.

We have now received confirmation that the Government Gazette has been finalised and signed. Discovery Invest can now allow for the withdrawal on Retirement Annuities with investment value of up to R15 000.00.

Ballot: Coronation Optimum Growth Fund

Coronation notified us of a ballot, which proposes the conversion of the ZAR feeder fund and amending its investment policy. If the proposed conversion is accepted by investors, the Coronation Optimum Growth Fund will change to the Coronation Global Optimum Growth [ZAR] Feeder Fund.

The ballot letter has more information about the reasons for the conversion, the amendment and how it will affect investors.

We will distribute the ballot letters to affected investors from 4 June 2021. If the ballot is successful, the feeder fund conversion will be effective 15 September 2021.

3 June 2021

Discovery Global Equity Feeder Fund webcasts from Ninety One

In the Discovery Global Equity Feeder Fund webcast, fund manager Rhynhardt Roodt reflects on the fund's double-digit returns amidst the turbulent backdrop of COVID-19. He attributes this success to their four-factor approach to investing by which they invest in high quality, attractively valued businesses with improving operating performance that are receiving investor attention. In addition, he touches on their share selection driven by technological disruption, leaps in healthcare and climate change.

To access this webcast, as well as further commentary and insights, check out our monthly Invest Insights publication. You can also access them through the Financial Adviser Zone under MARKETING SUPPORT > Invest > Funds and fact sheets > Fund commentaries.

27 May 2021

Offshore fund: Federated Hermes Global Funds capping

Allfunds notified us that the following funds will be soft capped, which means no new business or switches will be allowed from 15 June 2021:

• Federated Hermes Global EMG MKTS Class F (EURHDG)
• Federated Hermes Global EMG MKTS Class F (GBPHDG)
• Federated Hermes Global Emerging Markets Class F

We do not have holdings in this fund and have already capped these funds for new business and fund switches. This will not impact existing clients.

Discovery fund webcasts from Ninety One

The Discovery fund webcasts from Ninety One offers insights from top portfolio managers into each of their funds' performances over quarter one of 2021 (Q1 2021).

In the Discovery Flexible Property Fund webcast, portfolio manager Luqman Hamid reflects on a positive one-year return of over 35%, outperforming benchmarks over this period. This despite the tumultuous 2020 market backdrop. He believes such performance can be attributed to the in-depth analysis and understanding of the underlying stocks in the sector.

To access this webcast, as well as further commentary and insights, check out our monthly Invest Insights publication. You can also access them through the Financial Adviser Zone under MARKETING SUPPORT > Invest > Funds and fact sheets > Fund commentaries.

20 May 2021

Update: Withdrawals on retirement annuities with an investment value between R7 000 and R15 000

In the budget speech for the 2021/2022 tax year, an important change was announced for members of retirement annuity funds: The withdrawal amount has been changed from R7 000 to R15 000.
Important: This change has not been promulgated into law as yet and won't apply until it is. This means that clients withdrawing will still be bound to the current R7 000 limit.
The Draft Government Gazette, changing the amount from R7 000 to R15 000, has been issued for public comment but has not been accepted as yet.
Discovery Invest will have to wait for the Government Gazette to be finalised and signed by the president before we are able to process these withdrawals.
We will cancel withdrawals already submitted to Discovery Invest and these can only be resubmitted once the increased amount has been promulgated into law.
Discovery Invest will update you once the R15 000 limit has been promulgated into law.

Global Endowment update

On 19 April 2021, we made updates to the lump sum Global Endowment; admin fees were decreased, and access fees removed on external funds. We sent letters to affected clients from 17 May 2021 notifying them about these updates.

We sent you an email notification on the same day about how to access a copy of the letter on our secure website.

Discovery fund webcasts from Ninety One:

In the Discovery fund webcasts from Ninety One, each of the Discovery Fund portfolio managers discuss their fund's performance over Q1 2021 and their positioning going forward.

In the Discovery Equity Fund webcast, portfolio manager Terry Seaward reflects on performance. He offers insights into the top holdings as well as the multi style strategy underpinning the fund. These are based on value, quality and dynamics. To access this webcast, as well as further commentary and insights, check out our monthly Invest Insights publication. You can also access them through the Financial Adviser Zone under MARKETING SUPPORT > Invest > Funds and fact sheets > Fund commentaries.

Invest International plan and benefit name updates

In line with the launch of Invest International last year, we're simplifying and aligning our Invest International plan and benefit names. From 28 May 2021, the following name changes will apply:

13 May 2021

Withdrawal illustration: PrimeFlex plans

The withdrawal illustration functionality allows users to generate a variety of withdrawal illustrations for full or partial withdrawals, depending on the product rules.

Currently, clients, financial advisers and administrators can submit illustrations for Endowment, Preserver, Retirement Annuity, Discovery Retirement Optimiser and Flexible Investment Plans. We are now making the functionality available for PrimeFlex plans.

The new PrimeFlex withdrawal illustration was made available online from 10 May 2021 for quick and easy access.

29 April 2021

Pre retirement options for clients

We have sent letters to clients who have reached their boost payment or selected retirement dates. The letter explains the benefits that have become payable, benefits that are still available, options available to the client and how to get the most out of their retirement.

We started sending these letters on 28 April 2021. Financial advisers received a copy of the letter on the same day.

1st Fusion Funds name change

CI Collectives have renamed some of their funds. The table below shows the new names of the following 1st Fusion Funds:

There are no other changes to the portfolios or tax treatment of the portfolios.

22 April 2021

Invest International update

We are proud to announce our outsource partnerships with Exchange4free and Citadel Global, who will supply an exclusive foreign exchange service to advisers and clients on behalf of Discovery. Read more about our approved forex partners and the new business process for lump-sum global investments.

Complying with regulations on financial crime

According to regulations, we are required to perform risk assessments when entering any business relationship. When we follow this risk-based approach, certain high-profile individuals, occupations, industries and regions are categorised as higher-risk; as such, we are obliged to perform enhanced due diligence. Read more about the high risk occupations and source of funds.

Regulation 28 compliance letters

All clients who did not comply with Regulation 28 at the end of December 2020 will receive Regulation 28 compliance letters. We began distributing these letters to clients and their financial advisers from 15 April 2021.

Clients have until 15 May 2021 to submit their switch instructions. Discovery Invest reserves the right to switch all or part of the client's portfolio that does not comply with Regulation 28.

Investments that are not compliant on 15 May 2021 may be switched into the Discovery Cautious Balanced Fund until we receive a completed switch instruction. Switch instructions may be submitted either online or by completing a Switch Request form. To access the form, log in to FAZ > MARKETING SUPPORT. Under Invest, scroll down, and select Forms > Servicing forms

Availability of quarterly investment statements

Our quarterly investment statements for 1 January to 31 March 2021 are now available. Clients can access their statements by logging in to the Discovery app and our secure website. We have sent emails and SMSs to clients to let them know that the statements are available.

Fund update: CROCI funds

We capped the following cash return on capital invested (CROCI) funds for new business and switches on 14 April 2021. Existing recurring contributions will continue for the following funds:

• CROCI Europe
• CROCI Japan
• CROCI UK

8 April 2021

Discovery Enhanced Yield (July 2018 tranche) performance

Financial advisers with clients currently invested in the Discovery Enhanced Yield (July 2018 tranche) will each receive a letter. The letter will inform them about the performance of this fund, and provide answers to some questions and the options available to their clients.

We will distribute these letters to affected advisers from 08/04/2021.

1 April 2021

Discovery Escalator fund update

Financial advisers with clients invested in the Discovery Escalator fund range will receive letters from 30 March 2021. This document  provides an update about the performance of the Discovery Escalator fund and the options available to their clients.

The letter will also be available in the Secure document vault. To access it, log into the Financial Adviser Zone (FAZ), click on YOUR CLIENT, select Investments. On the side menu bar, select DOCUMENTS AND REPORTS. Click on SECURE DOCUMENT VAULT. Search for the letter by entering the letter name, for example, Discovery Escalator fund letter.

Back-to-back life annuity structures

Over the past few years, in part due to poor market performance, we've seen a resurgence in popularity of retirement income products that guarantee an income for life plus capital protection.

Deciding on an ideal retirement income structure for your client can be difficult and should take into consideration a number of factors including the impact of inflation, life expectancy statistics and flexibility, among other things.

To understand the true value of the back-to-back life annuity structure and help you make the best decision for your clients, read the attached document.

Discovery Dollar Capital+ (April 2016 tranche)

The Discovery Dollar Capital+ (April 2016 tranche) is a five-year product that gives clients exposure to the performance of the European and US equity markets in US dollars. The product is a global portfolio consisting of the EURO STOXX 50 and the S&P 500 indices. If the global portfolio is flat or positive at the end of the five-year period, the Discovery Dollar Capital+ gives 40% growth¹ in US dollars. This is before the effect of any administration fees, financial adviser fees and taxes where applicable. The five-year period ends on 15 April 2021.

Clients who are currently invested in this fund received letters on 25 March 2021 letting them know that this fund matured. To access this maturity letter, click here .

On the same day, financial advisers received an email with instructions on how they can access a copy of this letter on our secure website. To access the letter:

1. Log in to the Financial Adviser Zone (FAZ)
2. Click YOUR CLIENT
3. Select Investments
4. On the side menu bar, select DOCUMENTS AND REPORTS
5. Click on SECURE DOCUMENT VAULT
6. Search for the letter by entering the letter name [Discovery Dollar Capital + April 2016 tranche]

¹Growth, conditional downside protection or any other resulting return is before the effect of advice fees, Discovery admin fees and taxes, where applicable. These fees and taxes will affect the final return.

Coronation funds: fee and benchmark changes

Coronation notified us about fee and benchmark changes to their funds. The changes are effective 1 April 2021. Read more about the funds that are affected by these changes.

25 March 2021

Withdrawals on Retirement Annuities with investment values between R7000 and R15 000

The budget speech for 2021/2022 addressed withdrawals. It was announced that a member of a Retirement Annuity fund may access their benefit in the fund when meeting the following two criteria:

• The member has discontinued contributions to the fund
• The member's withdrawal interest is R15 000 or less. This is an increase from the R7000 limit previously allowed.

The current process for this withdrawal is to apply for a tax directive through the South African Revenue Service (SARS) before processing the withdrawal. As per the SARS website, SARS is still in the process of enhancing the tax directive application process. Testing of the enhancements will run from 24 March 2021 until 22 April 2021, with the intention to go live within the first quarter of the 2021/22 tax year.

Therefore, Discovery Invest is unable to apply for tax directives and pay out the withdrawals for amounts from R7 000 to R 15 000 until the SARS enhancement on the tax directives has gone live. Withdrawals already submitted will be pended in the interim.

Discovery Invest will update you once we are able to apply for tax directives for amounts from R7 000 to R15 000.

Regulatory requirement for updating client information by 31 March 2021

As a financial institution, we have a responsibility to ensure our investors' records are accurate and are updated regularly. In the past year, we wrote to our investors asking them to update their contact details and anti money laundering information with us. We notified them on how they can easily update their information. This can be done through our website or by completing a Request to change details form available from their advisers or our contact centre.

We have recently also enhanced the functionality on our Discovery app to make it easier for individual investors to update their information.

It is important to encourage investors to update their information. We ask for your co-operation to ensure that your client's information is up to date and sent to us by 31 March 2021. We have to restrict certain transactions on these policies from 1 April 2021 if the information has not been updated.

18 March 2021

New servicing verification functionality available on the web

We are excited to launch our new verification functionality for servicing transactions. This functionality aims to improve user experience and increase operational efficiencies.

When clients, financial advisers or broker assistants submit a servicing transaction on the web, they no longer need to upload supporting documents. Instead, the transaction will go through a verification process based on the information and documents we already have. We will only request supporting documents if we cannot validate the information.

The functionality is available for the following servicing transactions:

• Personal details change
• Contribution bank details change
• Address details change
• Recurring contribution changes for Endowment plans where the annual premium exceeds R25 000.

This functionality was made available from 13 March 2021.

Exchange rate confirmation

The debit order run for the Dollar Discovery Retirement Optimiser and Global Recurring Endowment plans is scheduled for the 25th of each month.

Each month, we apply changes based on the exchange rate (USD to ZAR) and we aim to publish the rate two business days before the debit order collection date. Where the 25th falls on a non business day, the debit order will be processed on the next business day.

We share this information on our website, and you can view the rate by simply logging in to the Financial Adviser Zone: Select MARKETING SUPPORT àSupport documents à InvestàProduct marketing material à Exchange rates for recurring global plans.

For more information, please contact us on 0860 33 33 62. You can also email us at invest_international@discovery.co.za.

Offshore fund: Fidelity US Dollar Cash Fund fee change

Allfunds notified us of a change to their annual management fee. The change comes into effect on 1 April 2021 and applies to the following fund:

There are no other changes to the fund or to the current tax treatment of the fund.

Offshore fund: Ninety One Series III Global Energy Fund: New Fund

Allfunds notified us about the liquidation of the Ninety One Global Energy Fund. We have capped the fund for new business and switches with immediate effect.

The new Ninety One Series III Global Environment Fund is now available with an annual management fee of 1.50%.

11 March 2021

Capping Discovery Medical Funds

We are capping the following Discovery Medical funds. This means that from 29 March 2021 we will not allow additional new business and switches into these funds.

• Discovery Medical 2025 Fund Class A
• Discovery Medical 2030 Fund Class A
• Discovery Medical 2035 Fund Class A
• Discovery Medical 2040 Fund Class A
• Discovery Medical 2045 Fund Class A
• Discovery Medical 2050 Fund Class A
• Discovery Medical 2055 Fund Class A
• Discovery Medical 2025 Fund Class A
• Discovery Medical 2030 Fund Class A
• Discovery Medical 2035 Fund Class A
• Discovery Medical 2040 Fund Class A
• Discovery Medical 2045 Fund Class A
• Discovery Medical 2050 Fund Class A
• Discovery Medical 2055 Fund Class A

Clients with existing recurring contributions will remain invested in the funds.

Ballot: Allan Gray - Orbis Global Fund of Funds

Allan Gray has notified us about a ballot proposing the following changes to the fund:

• Convert the Fund from a fund of funds structure to a feeder fund structure that invests solely in the Orbis SICAV Global Balanced Fund.
• Rename the fund since it will become a feeder fund.
• Change the Fund's benchmark to be aligned with the underlying Orbis SICAV Global Balanced Fund.

The ballot letter has more information about the impact these changes will have on clients' investments. From 10 March 2021 we will distribute the ballot letters to affected clients.

If the ballot is successful, the amalgamation is scheduled for 1 June 2021.

Ballots: Nedgroup Investments amalgamation

Nedbank has notified us about ballots proposing amalgamations between the following Nedgroup Investment Funds:

• Nedgroup Investments Growth Fund and Nedgroup Investments Value Fund into the Nedgroup Investments SA Equity Fund.
• Nedgroup Investments Private Wealth Small and Mid-Cap Equity Fund into the Nedgroup Investments Entrepreneur Fund (the amalgamated portfolio). This together with a proposal to change the investment policy of the Nedgroup Investments Entrepreneur Fund to include derivatives, as well as foreign and financial instruments in the management of the portfolio.

The ballot letters explain the reasons for the amalgamations and the impact it will have on clients' investments.

Starting on 8 March 2021, we will distribute the ballot letters to affected clients.

If the ballots are successful, the amalgamations will happen on 4 June 2021.

Ballots: Nedgroup Investments

Nedbank has notified us about ballots proposing a change to the investment policy on a few of their funds to include derivatives in the management of the portfolios. These funds are:

• The Nedgroup Investments Bravata Worldwide Flexible Fund
• The Nedgroup Investments Core Bond Fund
• The Nedgroup Investments Flexible Income Fund
• The Nedgroup Investments Rainmaker Fund

The ballot letters explain the reasons for the inclusion of the derivatives and how it will affect clients' investments.

Starting on 8 March 2021, we will distribute the ballot letters to affected clients.

If the ballots are successful, the inclusion of derivatives will happen on 4 June 2021.

Amity BCI Managed Select Fund's ballot

Boutique Collective Investments (BCI) is conducting a second round ballot. The first round of the ballot was unsuccessful as an intermediary business didn't circulate the ballot letter to all the investors.Staring on 8 March 2021, we will distribute the updated ballot letter to affected investors. If the ballot is successful, the amendment will take place on 24 May 2021.

4 March 2021

Regulatory requirement to update client information by 31 March 2021

As a financial institution, we have a responsibility to make sure our investors' records are accurate and up to date. We wrote to our investors during the past year, asking them to update their information with us. We told them how they can easily update their information, either through our website or by completing a Request to change details form available from their advisers or from our contact centre.

We recently improved the functionality on the Discovery app to make updating information even easier:

• The app checks for outstanding information
• Clients can also update their existing information

Please encourage your clients to register on the Discovery app and our website to keep their information up to date. Read more on how simple and easy it is for individual investors to update their information on the Discovery app.

Offshore fund: Lazard US Equity Fee change

Allfunds notified us of a change to their annual management fee. The change comes into effect from 10 March 2021 and applies to the following funds:

There are no other changes to the fund or to the current tax treatment of the fund.

Ballot: Alexander Forbes Funds

Alexander Forbes has notified us about a ballot, proposing the amalgamation of the Alexander Forbes Investments Balanced Fund of Funds with the Alexander Forbes Investments Performer Managed Unit Trust.

The ballot letter has more information about the reasons for the amalgamation and how it affects clients' investments.

We will distribute the ballot letters to affected clients from 3 March 2021.

If the ballot is successful, the amalgamation will be scheduled for 4 June 2021.

25 February 2021

Discovery Miles Integrator transfers will happen soon

The Discovery Miles Integrator rewards clients for taking responsibility for their financial future. It provides them with an up to 300% boost to their Discovery Miles depending on their Vitality status and Retirement Plan type when they invest the Discovery Miles for retirement.

For clients who previously chose to transfer their Discovery Miles into their Discovery Miles Integrator; on 12 March 2021 we will be automatically transfer 100% of their Discovery Miles balance into the Discovery Miles Integrator on their investment. This will apply at a rate of up to 1 Discovery Mile for every R10 of their lump sum Retirement or Preserver Plan fund balance. We distributed this letter to affected clients and their financial advisers from 12 February 2021.

Any clients who wish to stop the transfer, will need to call the Discovery Invest contact centre on 0860 67 57 77 before 8 March 2021 and tell a Discovery Invest agent of their decision.

Offshore Fund updates

Oyster Sustainable Europe Funds

We are capping these funds for all new business and fund switches immediately:

• Oyster - Sustainable Europe Class I (EUR) ACC
• Oyster - Sustainable Europe Class R HP (GBPHDG) ACC

Offshore Merian Funds name change

Allfunds changed the names of the following funds, management companies and asset managers from 15 February 2021*:

Offshore fund: Fidelity Funds renamed

Allfunds will rename the following funds from 24 February 2021*:

There are no other changes to the funds or to the current tax treatment of the funds.

Exchange rate confirmation

The debit order run for the Dollar Discovery Retirement Optimiser and Global Recurring Endowment plans are scheduled for the 25th of each month. The USD to ZAR exchange rate that we apply to these debit order runs changes each month, and we have been sharing these rates with the impacted financial advisers by email. These rates are booked on the 20th day of the month or the following business day.

We have enhanced the way we tell you about the exchange rate by making this information available online. You can access the exchange rate for the February 2021 debit order on our website from the 20th.

To view the exchange rate, simply log in to the Financial Adviser Zone. Select MARKETING SUPPORT and under Support documents, select Invest à Product marketing material àExchange rates for recurring global plans.

For more information, please contact us on 0860 33 33 62. You can also email us at invest_international@discovery.co.za.

18 February 2021

Correction to structured product performance

Last year in March during the COVID-19 market crash, we sent out a note updating you about the performance of our structured products. In this note we stated that the downside protection on both tranches of the Discovery Enhanced Yield had fallen away. However, the downside protection on the Discovery Enhanced Yield (July 2018 tranche) is still intact and has not fallen away. Only the January 2020 tranche downside protection has fallen away.

The correct information reflects on the performance notes we send out monthly for these tranches. View the latest note indicating clearly that the downside protection is intact for the July 2018 tranche and has fallen away for the January 2020 tranche.

4 February 2021

The Annual Trustee report is now available

The Annual Trustee report for the Discovery Retirement Annuity and Preservation Funds is now available on our secure website. This report includes information about the retirement funds, its trustees and the activities of the fund over the last financial year.

Members of the fund will received the following SMS notification from 2 February 2021 confirming the availability of the report on our secure website:

• Discovery Invest: View the 2020 Trustee Report on Discovery's website. Log in, select Investments>Your investment portfolio>Links and tools>Trustee Report

Financial advisers may also access it online by logging into FAZ and clicking on MARKETING SUPPORT. Under Support documents, select Invest > Tools and calculators > Under Tools , select Invest Annual Trustee Report.

Ensuring you have the latest forms

Our latest forms are available on the Financial Adviser Zone (FAZ).

These forms are updated occasionally in response to product enhancements, regulatory disclosure requirements or improving client experience. When this is done, older forms become invalid. Therefore, we encourage you to always download the latest forms from FAZ to avoid your transaction request being rejected.

28 January 2021

Rebalance Funds name change

We received a notification from Boutique Collective Investments about the successful ballot to rename their funds with immediate effect. The name changes apply to the following funds:

There are no other changes to the funds or to the current tax treatment of the funds.

21 January 2021

Quarterly investment statements available

Our quarterly investment statements for 1 October to 30 December 2020 are now available. Clients can access their statements by logging in to the Discovery app or our secure website. We have sent emails and SMSs to clients to let them know that the statements are available.

The future of Invest communication

We constantly strive to ensure that our clients' investment information remains confidential and protected. We are gradually changing the way clients receive and access investment information.

Encourage your clients to register on the Discovery app or our website. It's important for them to keep their email addresses and cellphone numbers updated so that they can receive email and SMS notifications from us.

Ballot: PSG Wealth Creator Fund of Funds

PSG Collective Investments (RF) Limited notified us about a ballot that proposes amending the investment policy of the PSG Wealth Creator Fund of Funds. The amendment is to remove the restriction of a maximum exposure of 95% to equity markets from the investment policy and allow the portfolio to be 100% invested in equities.

The ballot letter has more information about the reasons for the amalgamation and how it affects your clients' investments. We will distribute the ballot letters to affected clients from 19 January 2021.

If the ballot is successful, the amalgamation is scheduled for 15 April 2021.

Ballot: STANLIB Fund amalgamation

STANLIB notified us about a ballot that proposes amalgamating of the STANLIB SA Equity Fund and the STANLIB Equity Fund.

The ballot letter has more information about the ballot and how it will affect investors.

We started distributing the ballot letters to affected investors on 19 January 2021. If the ballot is successful, the amalgamation is scheduled for 14 May 2021.

14 January 2021

Goldman Sachs & BlackRock webinars

The Goldman Sachs webinar held in November 2020 is now available on our portal for you to watch. You can access the webinar on the Discovery Institute of Training's website.

In addition, we've uploaded the BlackRock webinar, which you can access here.

Discovery Enhanced Yield Fund (January 2020 tranche) performance

Clients who completed their first year of investment in the Discovery Enhanced Yield Fund (January 2020 tranche) will start receiving letters on 8 January 2021. This letter will inform them about the performance of this fund.

Financial advisers will receive an email on how to access a copy of the letter on our secure website.

Regulation 28 compliance letters

All clients who did not comply with Regulation 28 at the end of September 2020 will receive Regulation 28 compliance letters. These letters will be distributed to clients and their financial advisers from 15 January 2021.

Clients have until 15 February 2021 to submit their switch instructions. Discovery Invest reserves the right to switch all or the part of the client's portfolio that does not comply with Regulation 28. Investments that do not comply on 15 February 2021 may be switched into the Discovery Cautious Balanced Fund until we receive a completed switch instruction. Switch instructions can be submitted either online or by completing a Switch Request form. To access the form, log in to FAZ > MARKETING SUPPORT. Under Support documents, select Invest > Marketing and support documents > Forms > Servicing forms.

Select Manager BCI Income Fund of Funds fee change

Boutique Collective Investments (BCI) changed their annual management fee on 1 January 2021. The change applies to the following fund:

10 December 2020

Marriot Core Income Fund fee change

Marriot notified us of a change to their annual management fee. The change is effective 1 January 2021 and applies to the following fund: