Patrice Motsepe’s investment arm misses performance target

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African Rainbow Capital blames the economy after growth in intrinsic net asset value comes in at just 2.4%

Patrice Motsepe’s investment company African Rainbow Capital said weak economic conditions in SA resulted in it missing its performance targets in the year to end-June.Sanlam and Alexander Forbes, saw growth in net asset value per share of 2.4% to R9.45, significantly below its medium- to long-term target of 16% growth per annum.

“Our investee companies generally experienced low consumer, business and investor confidence, which was exacerbated by political and policy uncertainty before and after the May 2019 national elections,” ARC said. The results are in line with constrained economic conditions, the fund said, with the fund making acquisitions to the tune of R1.6bn during the period.

ARC upped its stake in TymeBank to 100% during the year, also increasing its holding in Alexander Forbes to 13.11% from 8.9%, which cost it R308m.ARC continues to trade at a hefty discount to its intrinsic NAV, which is seen as the best measure of how well an investment holding company is faring.

 

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