MARC HASENFUSS: Sabvest an example for others
Sabvest is the one part of my humble portfolio that does not keep me awake at night
I don’t have many Sabvest ordinary and N-shares, but it’s the one part of my humble portfolio that does not keep me awake at night. I can’t say I’m not delighted that the Sabvest brains trust has decided to amend its current short-term and long-term executive incentive schemes to include a performance metric of narrowing the discount at which Sabvest shares trade relative to the company’s published NAV per share. More investment companies should do this. The development follows the offer for sale of a material block of Sabvest N-shares owned by mercurial investor Ronnie Price that are being placed at a price of R34.60 a share — a hefty 37% discount to the last-stated NAV. With Sabvest shares likely to trade a little more freely after the placement, it makes sense to tinker with the incentive schemes, which are mainly driven by growth in NAV. The schemes will vest only if the share price discount to NAV meets the quantitative targets set by Sabvest’s remuneration committee for each c...
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