Reinet Investments, a R90 billion investment vehicle chaired by Johann Rupert, said yesterday that the net asset per share of its Reinet Fund had fallen slightly to 30.11 euro as of June 30, 2021, from 31.44 euro at the end of March 2021.
Reinet Investments holds the entire share capital of the Reinet Fund of 171.3m shares. In addition, Reinet Fund Manager holds 1 000 management shares in Reinet Fund.
Reinet Fund’s net asset value (NAV) amounted to 5.16 billion euros (about R89.1 billion) as of June 30, a decrease of 228 million euros from March 31, 2021.
Its net asset value per share represented about a 45 percent discount to Reinet Investments share price, which was trading 0.6 percent higher at R283.64 on the JSE yesterday, although the two figures are not strictly comparable.
“The NAV reflects Reinet Fund's shareholding in Pension Insurance Corporation Group (Penscorp), British American Tobacco (BAT), its other investments and cash resources, together with other assets and liabilities. Assets and liabilities have been revalued to their estimated fair values as at June 30, 2021,” the group said in a statement.
The consolidated balance sheet of Reinet Investments also reflects other parent company assets and liabilities, including cash and amounts payable to or receivable from Reinet Fund.
Nevertheless, the NAV of Reinet Fund represents a substantial element of the consolidated balance sheet of Reinet Investments as of June 30, 2021.
In the year to end-March 2021, Reinet Investment’s NAV increased 22,3 percent due in the main to increases in the value of the investments in Penscorp and BAT.
Over that period, Reinet Investments had reduced its stake in BAT to about a third of its portfolio from 40 percent while its investment in Penscorp amounted to 51.2 percent of its portfolio.
Reinet is the major shareholder of Penscorp, with its stake at 49.38 percent on June 16, 2021. Penscorp provides retirement incomes, and it had insured 273 500 pension scheme members and held £49.6bn in accumulated financial investments, as of December 31, 2020.
BAT’s share price on the JSE has barely moved from R549.84 on April 1 to trade at R551.93 yesterday on the JSE.
Reinet Investments, based in Luxembourg, is listed on the Luxembourg Stock Exchange, Euronext Amsterdam and it has a secondary listing on the JSE.