In more than 10 years as a listed vehicle Reinet, with a dogged determination to diversify widely, has shied away from a "big bet" investment. UK-based financial services group Pension Insurance Corp (PensCorp) — which it bought for £400m in the 2013 financial year — is probably as big as it gets at Reinet. It insures more than 170 pension funds with 162,800 pension fund members in the UK. While Reinet’s 43% stake in PensCorp hasn’t shot out the lights, the steady increase in value has meant the investment has become, by a fair margin, Reinet’s second-biggest holding. In 2014 PensCorp was valued at €548m and made up just 13.3% of the total NAV. But by December, the PensCorp stake was worth more than €1.2bn, and (with the value of the BAT stake much reduced) represented more than 30% of total NAV. Allan Gray portfolio manager Ruan Stander says PensCorp has managed to provide a minimum return of 20% on embedded value. "It certainly has exceeded our most optimistic expectations," he sa...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.