Not too long ago, shareholders in Reinet Investments might have wished for a better balance to the Rupert family-controlled company’s portfolio. Reinet, despite its ongoing attempts at diversifying its investment base, has largely been seen as a proxy for its largest investment, British American Tobacco (BAT). But right now shareholders can survey a far more equitable spread of investments in Reinet — although the manner in which this new balance was achieved was not triggered by inspired deal-making. Rather, Reinet’s investment portfolio has been radically reshaped by the steady decline in BAT’s share price over the past six months. In the past few weeks particularly, BAT has taken a beating on news that the US Food and Drug Administration is mulling a ban of menthol cigarettes in the US. Over the past three months, Reinet’s share price has fallen 21%. Electus Fund Managers co-head Neil Brown says this is entirely because BAT has fallen dramatically — by 38% in the past three month...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now