Wrap Text
Management statement for the first quarter ended 30 June 2016
Reinet Investments S.C.A.
Depositary Receipts issued by Reinet Securities SA
(Incorporated in Switzerland)
ISIN: CH0045793657
Depositary Receipt Code: REI
COMPANY ANNOUNCEMENT FOR IMMEDIATE RELEASE
MANAGEMENT STATEMENT FOR THE FIRST QUARTER ENDED 30 JUNE 2016
The Board of Reinet Investments Manager S.A. announces the results of Reinet Investments S.C.A. for the quarter ended 30 June 2016.
Key financial data
* Net asset value at 30 June 2016: EUR 5 515 million, an increase of EUR 294 million or 6 per cent from EUR 5 221 million at 31 March 2016
* Net asset value per share at 30 June 2016: EUR 28.15 (31 March 2016: EUR 26.65)
* Commitments totalling EUR 205 million in respect of new and existing investments were made during the period, including EUR 179 million (GBP 139 million) in Pension Insurance Corporation Group Limited
* Dividends received from British American Tobacco during the period amounted to EUR 89 million
Reinet Investments S.C.A. (the 'Company') is a partnership limited by shares incorporated in the Grand Duchy of Luxembourg and having its registered office at 35, boulevard Prince Henri, L-1724 Luxembourg. It is governed by the Luxembourg law on securitisation and in this capacity allows its shareholders to participate indirectly in the portfolio of assets held by its wholly-owned subsidiary Reinet Fund S.C.A., F.I.S. ('Reinet Fund'), a specialised investment fund also incorporated in Luxembourg. The Company's shares are listed on the Luxembourg Stock Exchange, the primary listing, and its South African Depository Receipts are listed on the Johannesburg Stock Exchange, the secondary listing. The Company's shares are included in the 'LuxX' index of the principal shares traded on the Luxembourg Stock Exchange. The Company and Reinet Fund together with Reinet Fund's subsidiaries are referred to as 'Reinet'.
Cautionary statement regarding forward-looking statements
This document contains forward-looking statements as that term is defined in the United States Private Securities Litigation Reform Act of 1995. Words such as 'may', 'should', 'estimate', 'project', 'plan', 'believe', 'expect', 'anticipate', 'intend', 'potential', 'goal', 'strategy', 'target', 'will', 'seek' and similar expressions may identify forward-looking statements. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside Reinet's control. Reinet does not undertake to update, nor does it have any obligation to provide updates or to revise, any forward-looking statements.
Reinet Investments S.C.A.
R.C.S. Luxembourg B 16 576
Registered office: 35, boulevard Prince Henri, L-1724 Luxembourg, Tel. (+352) 22 42 10, Fax (+352) 22 72 53
Email: info@reinet.com, website: www.reinet.com
BUSINESS OVERVIEW
+----------------------------------------------------------------------++
|Consolidated net asset value ||
|The consolidated net asset value ('NAV') at 30 June 2016 comprised: ||
+---------------------------++------------++-----++-------------++-----++
| ||30 June 2016|| ||31 March 2016|| ||
+---------------------------++------------++-----++-------------++-----++
| || EUR m|| %|| EUR m|| %||
+---------------------------++------------++-----++-------------++-----++
|Listed investments || || || || ||
+---------------------------++------------++-----++-------------++-----++
|British American || 3 951|| 71.6|| 3 512|| 67.3||
|Tobacco p.l.c. || || || || ||
+---------------------------++------------++-----++-------------++-----++
|SPDR Gold shares || 26|| 0.5|| 24|| 0.5||
+---------------------------++------------++-----++-------------++-----++
|Selecta Biosciences Inc. || 4|| 0.1|| -|| -||
+---------------------------++------------++-----++-------------++-----++
|Unlisted investments || || || || ||
+---------------------------++------------++-----++-------------++-----++
|Pension Insurance || 983|| 17.8|| 920|| 17.6||
|Corporation Group Limited || || || || ||
+---------------------------++------------++-----++-------------++-----++
| || || || || ||
+---------------------------++------------++-----++-------------++-----++
|Private equity and || 710|| 12.9|| 671|| 12.8||
|related partnerships || || || || ||
+---------------------------++------------++-----++-------------++-----++
|Trilantic Capital Partners || 158|| 2.9|| 143|| 2.7||
+---------------------------++------------++-----++-------------++-----++
|Fund IV, Fund || || || || ||
|V, TEP, related || || || || ||
|general partners and || || || || ||
|management companies || || || || ||
+---------------------------++------------++-----++-------------++-----++
|Renshaw Bay and || 167|| 3.0|| 178|| 3.4||
|related investments || || || || ||
+---------------------------++------------++-----++-------------++-----++
|Renshaw Bay advisory and || 10|| || 11|| ||
|investment management || || || || ||
|company || || || || ||
+---------------------------++------------++-----++-------------++-----++
|JPS Credit || 87|| || 84|| ||
|Opportunities Fund || || || || ||
+---------------------------++------------++-----++-------------++-----++
|Renshaw Bay Real || 70|| || 83|| ||
|Estate Finance Fund || || || || ||
+---------------------------++------------++-----++-------------++-----++
| || || || || ||
+---------------------------++------------++-----++-------------++-----++
|36 South || 59|| 1.1|| 62|| 1.2||
|macro/volatility funds || || || || ||
+---------------------------++------------++-----++-------------++-----++
| || || || || ||
+---------------------------++------------++-----++-------------++-----++
|Asian private equity || 158|| 2.9|| 155|| 3.0||
|and portfolio funds || || || || ||
+---------------------------++------------++-----++-------------++-----++
|Milestone China || 116|| || 113|| ||
|Opportunities funds, || || || || ||
|investment holdings and || || || || ||
|management company || || || || ||
|participation || || || || ||
+---------------------------++------------++-----++-------------++-----++
|Prescient China || 42|| || 42|| ||
|Balanced Fund || || || || ||
|and investment || || || || ||
|management company || || || || ||
+---------------------------++------------++-----++-------------++-----++
| || || || || ||
+---------------------------++------------++-----++-------------++-----++
|Specialised private || 168|| 3.0|| 133|| 2.5||
|equity funds || || || || ||
+---------------------------++------------++-----++-------------++-----++
|Vanterra Flex Investments || 30|| || 30|| ||
+---------------------------++------------++-----++-------------++-----++
|Vanterra C Change TEM || 22|| || 23|| ||
+---------------------------++------------++-----++-------------++-----++
|NanoDimension funds and || 50|| || 48|| ||
|co-investment opportunities|| || || || ||
+---------------------------++------------++-----++-------------++-----++
|Fountainhead Expert Fund || 18|| || 19|| ||
+---------------------------++------------++-----++-------------++-----++
|Snow Phipps funds || 43|| || 8|| ||
|and co-investment || || || || ||
|opportunities || || || || ||
+---------------------------++------------++-----++-------------++-----++
|Other fund investments || 5|| || 5|| ||
+---------------------------++------------++-----++-------------++-----++
| || || || || ||
+---------------------------++------------++-----++-------------++-----++
|United States land || 151|| 2.7|| 164|| 3.1||
|development and mortgages || || || || ||
+---------------------------++------------++-----++-------------++-----++
|Diamond interests || 55|| 1.0|| 59|| 1.1||
+---------------------------++------------++-----++-------------++-----++
|Other investments || 66|| 1.2|| 66|| 1.3||
+---------------------------++------------++-----++-------------++-----++
|Total investments || 5 946||107.8|| 5 416||103.7||
+---------------------------++------------++-----++-------------++-----++
|Cash and liquid funds || 201|| 3.6|| 380|| 7.3||
+---------------------------++------------++-----++-------------++-----++
|Bank borrowings and || || || || ||
|collar financing || || || || ||
+---------------------------++------------++-----++-------------++-----++
|Borrowings || (396)||(7.2)|| (417)||(8.0)||
+---------------------------++------------++-----++-------------++-----++
|Net derivative || (173)||(3.1)|| (78)||(1.5)||
|assets/(liabilities) || || || || ||
+---------------------------++------------++-----++-------------++-----++
|Other liabilities || || || || ||
+---------------------------++------------++-----++-------------++-----++
|Minority interest, fees || (63)||(1.1)|| (80)||(1.5)||
|payable and || || || || ||
|other liabilities, net || || || || ||
|of other assets || || || || ||
+---------------------------++------------++-----++-------------++-----++
|Consolidated net || 5 515||100.0|| 5 221||100.0||
|asset value || || || || ||
+---------------------------++------------++-----++-------------++-----++
All investments are held, either directly or indirectly, by Reinet Fund.
Full information on Reinet's investments may be found in the Reinet 2016 annual report which is available at www.reinet.com (http://www.reinet.com/).
Information relating to current key investments
+--------------------------------+---+-----------+-----------+---------+-----------+-----------+-----------+
| | |Committed |Remaining |Invested |Realised |Current |Total value|
| | |Amount (1) |Committed |Amount(2)|Proceeds(2)|fair |In |
| | |In |Amount(1) |In |In |Value(1) In|millions |
| | |millions |In millions|millions |millions |millions | |
+--------------------------------+---+-----------+-----------+---------+-----------+-----------+-----------+
|Listed investments | | | | | | | |
+--------------------------------+---+-----------+-----------+---------+-----------+-----------+-----------+
|British American Tobacco |EUR| -| -| 1 739| 1 654| 3 951| 5 605|
| +---+-----------+-----------+---------+-----------+-----------+-----------+
|p.l.c. |GBP| -| -| 1 418| 1 350| 3 295| 4 645|
+--------------------------------+---+-----------+-----------+---------+-----------+-----------+-----------+
|SPDR Gold shares |EUR| 22| -| 22| -| 26| 26|
| +---+-----------+-----------+---------+-----------+-----------+-----------+
| |USD| 25| -| 25| -| 29| 29|
+--------------------------------+---+-----------+-----------+---------+-----------+-----------+-----------+
|Unlisted investments | | | | | | | |
+--------------------------------+---+-----------+-----------+---------+-----------+-----------+-----------+
|Pension Insurance |EUR| 646| -| 656| -| 983| 983|
| +---+-----------+-----------+---------+-----------+-----------+-----------+
|Corporation Group Limited |GBP| 539| -| 539| -| 820| 820|
+--------------------------------+---+-----------+-----------+---------+-----------+-----------+-----------+
|Trilantic Capital Partners |EUR| 334| 110| 228| 255| 158| 413|
| +---+-----------+-----------+---------+-----------+-----------+-----------+
|Euro investment |EUR| 86| 20| 66| 108| 66| 174|
| +---+-----------+-----------+---------+-----------+-----------+-----------+
|US dollar investment(3) |USD| 275| 90| 185| 185| 102| 287|
+--------------------------------+---+-----------+-----------+---------+-----------+-----------+-----------+
|Renshaw Bay and | | | | | | | |
|related investments | | | | | | | |
+--------------------------------+---+-----------+-----------+---------+-----------+-----------+-----------+
|Renshaw Bay advisory and | | | | | | | |
| +---+-----------+-----------+---------+-----------+-----------+-----------+
|investment management |EUR| 30| 2| 29| -| 10| 10|
| +---+-----------+-----------+---------+-----------+-----------+-----------+
|company |GBP| 25| 1| 24| -| 8| 8|
+--------------------------------+---+-----------+-----------+---------+-----------+-----------+-----------+
|JPS Credit Opportunities |EUR| 63| -| 54| -| 87| 87|
| +---+-----------+-----------+---------+-----------+-----------+-----------+
|Fund |USD| 70| -| 70| -| 96| 96|
+--------------------------------+---+-----------+-----------+---------+-----------+-----------+-----------+
|Renshaw Bay Real Estate |EUR| 120| 43| 77| 12| 70| 82|
| +---+-----------+-----------+---------+-----------+-----------+-----------+
|Finance Fund |GBP| 100| 36| 64| 10| 58| 68|
+--------------------------------+---+-----------+-----------+---------+-----------+-----------+-----------+
|36 South macro/volatility | | | | | | | |
| +---+-----------+-----------+---------+-----------+-----------+-----------+
|funds |EUR| 88| -| 88| 6| 59| 65|
+--------------------------------+---+-----------+-----------+---------+-----------+-----------+-----------+
|Asian private equity | | | | | | | |
|and portfolio funds | | | | | | | |
+--------------------------------+---+-----------+-----------+---------+-----------+-----------+-----------+
|Milestone China Opportunities | | | | | | | |
|funds, investment holdings | | | | | | | |
| +---+-----------+-----------+---------+-----------+-----------+-----------+
|and management company |EUR| 152| 8| 124| 16| 116| 132|
| +---+-----------+-----------+---------+-----------+-----------+-----------+
|participation |USD| 169| 9| 161| 20| 129| 149|
+--------------------------------+---+-----------+-----------+---------+-----------+-----------+-----------+
|Prescient China Balanced | | | | | | | |
| +---+-----------+-----------+---------+-----------+-----------+-----------+
|Fund and investment |EUR| 29| -| 25| -| 42| 42|
| +---+-----------+-----------+---------+-----------+-----------+-----------+
|management company |USD| 32| -| 32| -| 47| 47|
+--------------------------------+---+-----------+-----------+---------+-----------+-----------+-----------+
|Specialised private equity funds| | | | | | | |
+--------------------------------+---+-----------+-----------+---------+-----------+-----------+-----------+
|Vanterra Flex Investments |EUR| 94| 36| 49| 23| 30| 53|
| +---+-----------+-----------+---------+-----------+-----------+-----------+
| |USD| 104| 40| 64| 27| 33| 60|
+--------------------------------+---+-----------+-----------+---------+-----------+-----------+-----------+
|Vanterra C Change TEM |EUR| 59| 5| 43| 1| 22| 23|
| +---+-----------+-----------+---------+-----------+-----------+-----------+
| |USD| 65| 6| 59| 1| 25| 26|
+--------------------------------+---+-----------+-----------+---------+-----------+-----------+-----------+
|Nano Dimension Funds and | | | | | | | |
| +---+-----------+-----------+---------+-----------+-----------+-----------+
|co-investment opportunities |EUR| 54| 13| 38| 1| 50| 51|
+--------------------------------+---+-----------+-----------+---------+-----------+-----------+-----------+
|Euro investment |EUR| 4| -| 4| 1| 5| 6|
| +---+-----------+-----------+---------+-----------+-----------+-----------+
|US dollar investment |USD| 56| 14| 42| -| 50| 50|
+--------------------------------+---+-----------+-----------+---------+-----------+-----------+-----------+
|Fountainhead Expert Fund |EUR| 36| 18| 15| -| 18| 18|
| +---+-----------+-----------+---------+-----------+-----------+-----------+
| |USD| 40| 20| 20| -| 20| 20|
+--------------------------------+---+-----------+-----------+---------+-----------+-----------+-----------+
|Snow Phipps funds and |EUR| 117| 74| 42| 4| 43| 47|
| +---+-----------+-----------+---------+-----------+-----------+-----------+
|co-investment opportunities |USD| 130| 82| 48| 5| 48| 53|
+--------------------------------+---+-----------+-----------+---------+-----------+-----------+-----------+
|United States land | | | | | | | |
| +---+-----------+-----------+---------+-----------+-----------+-----------+
|development and |EUR| 186| 5| 153| -| 151| 151|
| +---+-----------+-----------+---------+-----------+-----------+-----------+
|mortgages |USD| 207| 6| 201| -| 168| 168|
+--------------------------------+---+-----------+-----------+---------+-----------+-----------+-----------+
|Diamond interests (4) |EUR| 75| 2| 116| 59| 55| 114|
| +---+-----------+-----------+---------+-----------+-----------+-----------+
| |ZAR| 1 230| 40| 1 190| 846| 907| 1 753|
+--------------------------------+---+-----------+-----------+---------+-----------+-----------+-----------+
(1) Calculated using 30 June 2016 foreign exchange rate.
(2) Calculated using actual foreign exchange rates.
(3) The invested amount for Trilantic Capital Partners includes an initial payment of USD 10 million.
(4) The exposure to the South African rand has been partially hedged by a forward exchange contract and borrowings in this currency.
PERFORMANCE
NET ASSET VALUE
The increase in the NAV of EUR 294 million during the period reflects the increase in value of, and receipt of dividends from British American Tobacco p.l.c. ('BAT'), and decreases in the estimated fair value of loans payable, offset by decreases in the estimated fair value of certain investments.
The Company records its assets and liabilities in euros; the depreciation of sterling against the euro following the UK's recent referendum, has resulted in a decrease in the value of certain assets and liabilities in euro terms. This decrease was offset to a small extent by the appreciation of other currencies against the euro. Applying 31 March 2016 exchange rates to the current period's assets and liabilities would have resulted in an increase in value of some EUR 228 million.
The short-term impact of the UK's referendum to leave the European Union resulted in volatility in equity markets and a weakening in the value of sterling, however the long-term impacts are as yet unknown.
Major items impacting the NAV during the period under review are described below:
LISTED INVESTMENTS
BRITISH AMERICAN TOBACCO P.L.C.
The investment in BAT remains Reinet's single largest investment position and is kept under constant review, considering the company's performance, the industry outlook, cash flows from dividends, stock market performance, volatility and liquidity.
Reinet received dividends from BAT during the quarter amounting to EUR 89 million (GBP 70 million), being BAT's final 2015 dividend.
Reinet holds 68.1 million shares in BAT, representing some 3.7 per cent of BAT's issued share capital. The value of Reinet's investment in BAT amounted to EUR 3 951 million at 30 June 2016, being some 72 per cent of Reinet's NAV. The BAT share price on the London Stock Exchange increased from GBP 40.900 at 31 March 2016 to GBP 48.425 at 30 June 2016, with a marked increase in the days following the UK's referendum in June 2016. This increase in value is offset by the weakening of sterling against the euro during the period, the effect of which amounts to some EUR 207 million.
Further information on BAT is available at www.bat.com/annualreport.
UNLISTED INVESTMENTS
PENSION INSURANCE CORPORATION GROUP LIMITED
During the current period, Pension Insurance Corporation Group Limited ('Pension Corporation') raised GBP 250 million in additional capital; of this amount Reinet invested an additional EUR 179 million (GBP 139 million).
Reinet's investment in Pension Corporation is carried at an estimated fair value of EUR 983 million at 30 June 2016 (31 March 2016: EUR 920 million), this value takes into account Pension Corporation's unaudited embedded value at 31 March 2016, the capital increase in the current period, valuation multiples drawn from industry data and period end foreign exchange rate.
The increase in estimated fair value is due to an increase in Pension Corporation's embedded value which reflects new business written and the effect of changing economic variables, together with the capital increase in the period; this increase in estimated fair value is offset by decreases in comparable valuation multiples being applied by the market in valuing listed companies in the UK insurance sector. These comparable market multiples are 14 per cent lower than those applied at 31 March 2016, reflecting the market movements relative to embedded value of the sector during the period, which includes the effect of the market movement following the UK's referendum. The increase in estimated fair value is further reduced by the weakening of sterling against the euro in the period, the effect of which amounts to some EUR 59 million.
Further information on Pension Corporation is available at www.pensioncorporation.com.
PRIVATE EQUITY AND RELATED PARTNERSHIPS
TRILANTIC CAPITAL PARTNERS
Reinet's and its minority partners' investment is carried at the estimated fair value of EUR 158 million at 30 June 2016 (31 March 2016: EUR 143 million) of which EUR 10 million (31 March 2016: EUR 10 million) is attributable to minority partners. The estimated fair value is based on unaudited valuation data provided by Trilantic Management at 31 March 2016 adjusted for changes in the value of listed investments included in the portfolios. The increase in the valuation is mainly due to additional capital invested in the period.
Further information on Trilantic is available at www.trilantic.com.
RENSHAW BAY AND RELATED INVESTMENTS
Renshaw Bay Real Estate Finance Fund
The investment is carried at the estimated fair value of EUR 70 million at 30 June 2016 (31 March 2016: EUR 83 million) based on unaudited valuation data provided by the fund manager at 31 March 2016.
The decrease in estimated fair value is mainly due to distributions received from the fund as well as the weakening of sterling against the euro in the period.
SPECIALISED PRIVATE EQUITY FUNDS
Snow Phipps funds and co-investment opportunities
Snow Phipps is a private equity firm which targets investments in market-leading companies in the industrials, services and consumer sectors primarily headquartered in North America.
In 2011, Reinet committed to invest up to USD 10 million in Snow Phipps II, L.P.; in the year ended 31 March 2016, Reinet made a commitment of USD 100 million (EUR 88 million) to Snow Phipps III, L.P. the successor fund to Snow Phipps II, L.P. and in the current period Reinet committed USD 20 million (EUR 18 million) to two co-investment opportunities.
Reinet's investment in the two funds and associated co-investments is carried at an estimated fair value of EUR 43 million at 30 June 2016 (31 March 2016: EUR 8 million), the increase in value being mainly due to additional capital invested in the period.
Further information on Snow Phipps is available at www.snowphipps.com.
UNITED STATES LAND DEVELOPMENT AND MORTGAGES
The investment is carried at the estimated fair value of EUR 151 million (31 March 2016: EUR 164 million), of which EUR 2 million is attributable to minority partners (31 March 2016: EUR 2 million).
The decrease in the valuation reflects expected decreases in land values and in the forecast rate of lot sales, and increases in running costs of the golf club communities, offset by the strengthening of the US dollar against the euro during the period.
Further information on Arendale may be found at www.arendale.com.
COMMITMENTS
Commitments made in the period amounted to EUR 205 million, including EUR 179 million in respect of Pension Corporation, EUR 18 million in respect of co-investments alongside Snow Phipps III, L.P., EUR 4 million in respect of United States land development and mortgages and EUR 4 million in Selecta Biosciences Inc.
CASH AND LIQUID FUNDS
Reinet holds cash on deposit principally in European banks.
During the quarter under review Reinet received dividends from BAT amounting to EUR 89 million and invested some EUR 235 million in underlying investments, including EUR 179 in Pension Corporation. Performance and management fees of EUR 27 million accrued as at 31 March 2016 were paid to Reinet Investment Advisors Limited (the 'Investment Advisor'). Other movements including distributions from investments, loan repayments and foreign exchange impacts amount to EUR 5 million.
Reinet has in place borrowing facilities which will permit it to drawdown the equivalent of up to GBP 300 million in a combination of currencies to fund further investment commitments. The borrowing facilities comprise a facility with Bank of America for GBP 150 million and a facility with Morgan Stanley of GBP 150 million. At 30 June 2016, these facilities had not been drawn upon.
BANK BORROWINGS AND RELATED DERIVATIVE CONTRACTS
BORROWINGS
In February 2012, Reinet entered into a GBP 300 million, medium-term collar financing arrangement. At 30 June 2016, the estimated fair value of the borrowing was EUR 361 million (31 March 2016: EUR 380 million). The decrease in estimated fair value reflects the weakening of sterling against the euro in the period. The collar financing arrangement involves the purchase by Reinet of put options and the sale by Reinet of call options over 13.7 million BAT shares. The remaining unpaid net option premium is payable over the period to 2017 and is carried as a liability at its estimated fair value of EUR 8 million as at 30 June 2016 (31 March 2016: EUR 11 million). Some 1 million BAT shares have also been pledged to guarantee the balance of the net option premium and a portion of the interest payments.
Reinet has also borrowed ZAR 443 million to fund its investments in South African projects. At 30 June 2016, the estimated fair value of the borrowing was EUR 27 million (31 March 2016: EUR 26 million); the increase in estimated fair value is due to the strengthening of the South African rand against the euro during the period.
DERIVATIVE ASSETS/(LIABILITIES) – PUT AND CALL OPTIONS AND FORWARD EXCHANGE CONTRACTS
Put and call options in respect of the GBP 300 million medium-term collar financing arrangement noted above are carried at their respective estimated fair values at the balance sheet date. The net derivative liability is carried at its estimated fair value of EUR 173 million at 30 June 2016 (31 March 2016: EUR 80 million). The increase in the value of the liability is due to the increase in the BAT share price of over GBP 7 per share in the period.
Reinet has entered into a forward exchange contract to sell ZAR 550 million (31 March 2016: ZAR 550 million). The derivative asset in respect of the forward exchange contract is carried at its estimated fair value of EUR nil at 30 June 2016 (31 March 2016: liability of EUR 2 million). The change in value reflects the strengthening of the South African rand against the euro in the period.
OTHER LIABILITIES
MINORITY INTEREST, FEES PAYABLE AND OTHER LIABILITIES, NET OF OTHER ASSETS
The minority interest liability amounts to EUR 14 million (31 March 2016: EUR 15 million) and is in respect of minority partners' share in the gains and losses not yet distributed to them arising from the fair value movement of investments in which they have interests.
Fees payable and other liabilities comprise principally an accrual of EUR11 million in respect of the management fee payable as at 30 June 2016 (31 March 2016: EUR 22 million), a provision for deferred taxes of EUR 11 million (31 March 2016: EUR 10 million) relating to gains arising from the investments in Trilantic and withholding and corporate taxes of EUR 21 million (31 March 2016: EUR 18 million) relating to the investment in United States land development and mortgages. Accruals and other payables amount to some EUR 6 million (31 March 2016: EUR 10 million).
No provision has been made in respect of a performance fee as at 30 June 2016 (31 March 2016: EUR 5 million) as the conditions required to pay a fee had not been met at that date.
The performance and management fees are payable to the Investment Advisor.
SHARES IN ISSUE
The number of shares in issue remained unchanged during the period at 195 942 286. This figure includes 1 000 management shares held by the General Partner.
SHARE INFORMATION
Primary Listing
Reinet Investments S.C.A. shares are listed on the Luxembourg Stock Exchange with the ISIN number LU0383812293 (symbol 'ReinetInvest'). Thomson Reuters code REIT.LU. Reinet shares are included in the 'LuxX' index of the principal shares traded on the Luxembourg Stock Exchange.
The Company's share price increased by 11 per cent in the period from EUR 17.31 at 31 March 2016 to EUR 19.25 at 30 June 2016, with the highest trade being at EUR 20.40 during the period.
Secondary Listing
Reinet Investments S.C.A. South African Depository Receipts are traded on the Johannesburg Stock Exchange under the ISIN number CH0045793657 (symbol 'REI'). Thomson Reuters code REIJ.J. One depository receipt issued by Reinet Securities SA represents one-tenth of one ordinary share in Reinet Investments S.C.A.
The price of South African Depositary Receipts increased from ZAR 31.74 at 31 March 2016 to ZAR 34.67 at 30 June 2016, an increase of 9%.
Sponsor
RAND MERCHANT BANK (a division of FirstRand Bank Limited)
Reinet Investments Manager S.A.
General Partner
For and on behalf of Reinet Investments S.C.A.
26 July 2016
Website: www.reinet.com
Reinet Investments S.C.A. is a partnership limited by shares incorporated in the Grand Duchy of Luxembourg and having its registered office at 35, boulevard Prince Henri, L-1724 Luxembourg. It is governed by the Luxembourg law on securitisation and in this capacity allows its shareholders to participate indirectly in the portfolio of assets held by its wholly-owned subsidiary Reinet Fund S.C.A., F.I.S., a specialised investment fund also incorporated in Luxembourg. Reinet Investments S.C.A. shares are listed on the Luxembourg Stock Exchange, its primary listing, and Reinet Investments S.C.A. South African Depository Receipts are listed on the Johannesburg Stock Exchange, the secondary listing.
Date: 26/07/2016 07:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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