Reinet’s NAV grows 6.6% in first half

Investment vehicle Reinet has reported a 6.6% rise in its net asset value (NAV) in the first half, reflecting increases in the fair value of its investments.

NAV at end-September of €6.6bn reflected an increase of €407m, or 6.6%, from €6.18bn at end-March, the company, which is chaired by Johann Rupert, said in a statement on Wednesday.

NAV per share rose to €36.25 from €34.02 at end-March and €30.89 a year ago.

The increase in NAV reflected increases in the estimated fair value of certain investments, including British American Tobacco (BAT), Pension Insurance Corporation Group and Prescient China funds, together with dividends received from BAT and Pension Corporation, Reinet said.

Offsetting these increases were decreases in the estimated fair value of Nano Dimension funds and other investments, realised losses on certain investments, the dividend paid by the company and accrued expenses in respect of management and performance fees.

Reinet received dividends from BAT, which remains one of its largest investments, of €68m and ordinary and special dividends from Pension Corporation of €235m during the period.

Commitments of €98m were funded during the period and no significant new commitments were made.

During the period, geopolitical uncertainty increased, with the war in Ukraine, turmoil in the Middle East, high interest rates and inflation still affecting global markets.

While inflation and interest rates have started to fall, the effect of global factors remains uncertain.

Reinet had no direct exposure to Russia, Ukraine or the Middle East through its underlying investments or banking relationships and had not experienced any significant direct effects in respect of interest rate fluctuations or inflation, it said.

A dividend of €0.35 per share, amounting to €64m, was paid during the period.

mackenziej@arena.africa