Reinet Investments steady despite slight decline in first-quarter net asset value
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REINET Investments Manager SA’s net asset value (NAV) of €5.16 billion (about R90.23bn) in the quarter to June 30 reflected annual compound growth of 9.1 percent since March 2009, a management statement from the company said yesterday.
In the first quarter to June 30, NAV fell 4.3 percent, or by €229 million, while NAV per share came to €27.97, down from €29.91 at March 31.
NAV in the quarter reflected the lower fair value of investments, including UK-based Pension Insurance Corporation Group and derivative assets, offset by increases in the value of British American Tobacco (BAT), other listed investments, Trilantic Capital Partners, Snow Phipps funds and co-investment opportunities and Prescient China funds.
Reinet typically builds partnerships with other investors, specialised fund managers and entrepreneurs to find and develop opportunities for long-term value creation for its shareholders.
Since its formation in 2008, Reinet had invested €3.1bn and at June 30, and it planned to fund a further €613m on current investments.
New commitments in the quarter under review amounted to €253m, and a total of €20m was funded during the quarter.
The decrease in Reinet’s estimated fair value of Pension Insurance Corporation was mainly a result of a decrease in comparable company multiples derived from public information of listed peer-group companies in the UK insurance sector as at June 30, and the weakening of sterling against the euro in the quarter.