Investment company Reinet takes a knock from exchange rates
But dividends from British American Tobacco helped offset declines arising from the pound and dollar weakening against the yen
Investment group Reinet’s net asset value (NAV) decreased by 3% in the three months to end-June, the group said on Wednesday.NAV for the group’s third quarter decreased by €182m to €5.82bn, due to declines in the estimated fair value of investments including British American Tobacco, Pension Insurance Corporation Group Limited and US land development and mortgages.Dividends received from British American Tobacco during the period amounted to €95, offsetting losses.In midmorning trade Reinet shares had added 1.5% to R30.40.Reinet said the effect on fair value on various investments was largely due to both the sterling and the dollar weakening against the euro during the period.Applying the current period-end exchange rates to the March 2017 assets and liabilities, would have resulted in a decrease in the March 2017 net asset value of about €218m, the company said.
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