Trading at a discount to its valuation, Reinet, which is invested in British American Tobacco and a number of other quality assets, is an option for those investors with a longer time horizon.
Reinet Investments SCA (Reinet) essentially evolved out of Richemont SA to become an investment holding company whose primary asset was (and still is) British American Tobacco (BAT).
An investment in Reinet since its inception late in 2008 would have yielded a shareholder return of 16% per annum when including both the capital gains and dividends paid. While past performance provides no absolutes in terms of guaranteeing future gains, there is merit in the group’s past consistency in yielding a return for shareholders. At current levels Reinet is trading at a historically high discount to its net asset value (NAV), making for a compelling value investment case at present.
Reinet wholly owns the Reinet Fund, which manages the group’s cash and asset investments. The fund’s most significant holding, as alluded to earlier, remains BAT, accounting for 70.8% of the portfolio.
About 19.6% of the portfolio is made up of its holdings in the UK’s Pension Insurance Corporation, with the balance of the portfolio made up of private equity holdings, other investments as well as cash and funding resources.
British American Tobacco
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