All Reinet's holdings in the 36 South structure have now been fully realised.

Further information on 36 South is available at www.36south.com.

ASIAN PRIVATE EQUITY COMPANIES AND PORTFOLIO FUNDS Milestone China Opportunities funds, investment holdings and management company participation

Reinet has invested along with Milestone Capital in a management company based in Shanghai, and has also invested in certain funds and an investment holding company managed by Milestone Capital (together 'Milestone').

Milestone Capital has a strong track record in helping portfolio companies scale their operations and become listed on either domestic or foreign stock exchanges. Funds under management invest primarily in domestic Chinese high-growth companies seeking expansion or acquisition capital. Milestone funds seek to maximise medium- to long-term capital appreciation by making direct investments to acquire minority or majority equity stakes in those companies identified by Milestone's investment team. Current areas of investment include: restaurants; biopharmaceutical manufacturers; medical device manufacturers; food and beverage distribution; brands covering sportswear and apparel; big data services; e-commerce; power generation equipment; retail pharmacies and online education.

Yunli Lou, Managing Partner of Milestone Capital, commented:

'During the year of 2020, Milestone continued working closely with our portfolio companies to drive operational excellence and help with various strategic initiatives. Among our active portfolio companies, one leading e-commerce platform was successfully listed on the Shanghai Stock Exchange in 2020. One medical consumable company quickly added PPEs (personal protection equipment) to their product portfolio to meet the demand of its existing customers as well as new customers in the US, Europe and Brazil given the global COVID-19 outbreak, and recorded robust sales growth in 2020. Moreover, we also strived to achieve liquidity and realize returns for our investors. We had fully exited from our investment in a leading Chinese sportswear company by selling shares through the open market on the Hong Kong Stock Exchange to capture the substantial value appreciation. As at the end of 2020, Fund III had returned USD 295.9 million in cash to its Limited Partners, representing 84.3 per cent of total capital called. The remaining portfolio is valued at USD 230.0 million.

2020 was a turbulent year significantly impacted by the COVID-19 outbreak. China was the first country hit by the outbreak, but managed to quickly contain the pandemic with strict lockdown policies, expanding testing and quarantine capacity, and strong execution. Within one month, the number of daily new cases was reduced from its peak of above 3 000 level in early February to below 100 in March, and social activities recovered quickly as well, posting a V-shape recovery in 2020. China's GDP was USD 15.6 trillion for the full year of 2020, representing a year-on-year increase of 2.3 per cent at comparable prices. Specifically, GDP declined by 6.8 per cent year-on-year in the first quarter, but rebounded 3.2 per cent in the second quarter, 4.9 per cent in the third quarter and 6.5 per cent in the fourth quarter. Capital markets also rebounded sharply from their lows in the first quarter of 2020. As of 31 December 2020, the Shanghai Composite Index and Shenzhen Composite Index increased 26.5 per cent and 44.8 per cent from their bottoms in 2020 or 12.6 per cent and 32.6 per cent from the beginning of 2020, respectively. We believe China's economy is healthy and resilient and has a solid foundation for the next stage of development.'

The investment in Milestone is held at the estimated fair value of EUR 49 million (31 March 2020: EUR 60 million) based on audited financial information provided by Milestone Capital at 31 December 2020 adjusted for movements in listed investments and cash movements up to 31 March 2021.

No adjustment has been made by Reinet in respect of the impact of COVID-19 on the valuation of underlying unlisted investments at 31 March 2021 following discussion with Milestone Capital, as Reinet does not expect this to be significant. Future valuations will take into account any new impacts of COVID-19 which could affect the valuation of underlying investments.

The decrease in the estimated fair value reflects distributions of EUR 15 million together with the weakening of the US dollar against the euro, offset by increases in the value of underlying investments during the year.

Further information on Milestone Capital and Milestone funds is available at www.mcmchina.com.

Prescient China funds and investment management company

Reinet invests in the Prescient China Balanced Fund, the Prescient China Equity Fund and the management company.

The Prescient China Equity Fund uses a systematic, quantitative approach to seek long-term capital growth by investing primarily in China 'A' shares listed on the Shanghai and Shenzhen Stock Exchanges by virtue of Prescient's Qualified Foreign Institutional Investor status granted by the China Securities Regulatory Commission.

Prescient China Balanced Fund invests in equities following a similar strategy to the Prescient China Equity Fund and also in bonds, cash and derivatives with the objective of generating inflation-beating returns at acceptable risk levels.

Both funds are managed by a subsidiary of Prescient Limited ('Prescient'), a South African fund manager, with the team based in Shanghai.

Liang Du, Portfolio Manager of Prescient, commented:

'In spite of an incredibly volatile year, financial markets around the world performed extremely well in 2020. Living in China over the past year during the coronavirus outbreak was truly eye opening. Unlike the China of the past where such an outbreak could have been a major catastrophe, competent leadership, strong decisive measures combined with high tech solutions meant China was able to quickly deal with the outbreak. After a short and harsh lockdown in the beginning, China was able to get the virus under control and life back to normal by late April 2020. Considering that China's per capita GDP is just barely above a low income country with a population of 1.6 billion, it really speaks volumes to unity and competent leadership during a crisis. The end result is a stronger financial situation with a better social outcome as well. Being in China also meant we almost had a time machine, as COVID was spreading to the rest of the world, the Chinese experience was basically running 2 months ahead. It allowed us to take our experience in China and make successful investment decisions. The result was an extremely successful year, not only was the market strong, alpha was also extremely strong in 2020, the combination meant the balanced fund was up over 42 per cent over the year and the equity fund was up over 52 per cent.'

Reinet's total investment is carried at an estimated fair value of EUR 142 million based on unaudited financial information provided by the fund manager at 31 March 2021 (31 March 2020: EUR 102 million). The increase in estimated fair value over the year under review is the result of increases in the value of underlying investments, offset by the weakening of the US dollar against the euro in the year.

Further information on Prescient is available at www.prescient.co.za.

Grab Holdings Inc.

Grab Holdings Inc. ('Grab') is the leading superapp platform in Southeast Asia, providing everyday services that matter to consumers. Today, the Grab app has been downloaded onto millions of mobile devices, giving users access to over nine million drivers, merchants, and agents. Grab offers a wide range of on-demand services in the region, including mobility, food, package and grocery delivery services, mobile payments, and financial services across 428 cities in eight countries.

Reinet invested EUR 43 million (USD 50 million) in Grab. As at 31 March 2021, the investment in Grab is held at the estimated fair value of EUR 43 million (31 March 2020: EUR 45 million), calculated based on recent transactions. No adjustment has been made by Reinet in respect of the impact of COVID-19 as at 31 March 2021, as Reinet does not expect this to be significant.

In April 2021, Grab announced its intention to go public in the United States in the coming months. The shares will trade following a merger with US-listed Altimeter Growth Corp.

Further information on Grab is available at www.grab.com.

Asia Partners fund

In 2021, Reinet committed some EUR 21 million (USD 25 million) as a limited partner in Asia Partners I LP ('Asia Partners'). Asia Partners raised USD 384 million at its final close in February 2021 and is the inaugural fund of Asia Partners Fund Management Pte, Ltd, a Singapore-based growth equity investment firm.

Asia Partners will base its investment strategy on the long-term growth potential of Southeast Asia, the rapid growth of innovative technology and technology-enabled businesses in the region and target investments in the USD 20 million to USD 50 million range, often described as the 'Series C/D Gap' between early-stage venture capital and the public capital markets.

As at 31 March 2021, Reinet invested some EUR 7 million in Asia Partners. The estimated fair value of the investment is EUR 8 million.

Further information on Asia Partners is available at www.asiapartners.com.

SPECIALISED INVESTMENT FUNDS

Vanterra C Change TEM and holding companies

Vanterra C Change Transformative Energy & Materials ('Vanterra C Change TEM') was established in July 2010 to invest in companies and projects providing products or services that supply cleaner energy; create a more cost-effective building environment through the use of energy-efficient technologies; and develop renewable resources as a substitute for fossil and other traditional fuels.

Reinet is an investor in Vanterra C Change TEM and in its general partner.

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May 25, 2021 01:32 ET (05:32 GMT)