Tobacco stake lifts Reinet’s portfolio


Tobacco stake lifts Reinet’s portfolio


Published Date: 2018-01-25 | Source: Stephen Gunnion | Author: Stephen Gunnion

Tobacco stake lifts Reinet’s portfolio

The investment fund says it hasn't made provision for a performance fee as the conditions haven't been met

Reinet Investments says British American Tobacco forms a larger part of its investment portfolio following a rise in BAT's share price at the end of last year. In a third-quarter management statement yesterday, the Rupert family-controlled investment fund said BAT made up 67.3% of its €5.7 billion portfolio at the end of December due to an increase in its share price. BAT's shares rose more than 7% on the London Stock Exchange between September and December. To some extent, the increase in value was offset by the weakening of sterling against the dollar during the quarter, Reinet says.

Reinet's second-largest investment is its holding in unlisted Pension Insurance Corporation, which had an estimated fair value of €1.29 billion at the end of December, up from €1.21 billion in September. Again, growth in the value of its investment in the UK-based financial services specialist was offset by sterling weakness.

Related article: BAT stake boosts Reinet's value

However, not all of Reinet's investments increased in value, with some of its private equity holdings shrinking in value. Its investment in Trilantic Capital fell from €214 million to €197 million due to capital distributions and the weakening of the dollar against the euro. Its investment in Vanterra Flex Investments halved to €13 million due to a distribution of assets, some of which are now housed elsewhere.

Reinet's cash and liquid funds fell from €313 to €281 as it put more money into its underlying investments. Management fees of €25 million, accrued as at 30 September. were paid to Reinet Investment Advisors. It said it hasn't made any provision for a performance fee as the conditions haven't been met.

Its shares closed 2.2% higher at R273 yesterday.


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