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...

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