Reinet NAV drops on currency drag, but share price and liquidity remain strong

Key topics:NAV down 3.7% after €190m loss from currency weakness and PIC revaluation.Pension Corporation sale agreement and €303m dividends bolster liquidity.Share price up 8.7% and cash reserves of €2.1bn exceed funding commitments.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..BizNews Reporter.Reinet Investments S.C.A. (RNI), a Luxembourg-incorporated partnership limited by shares, reported consolidated unaudited financial results for the six-month period ended September 30, 2025, revealing a significant net loss and a decline in Net Asset Value (NAV), primarily driven by adverse currency effects and fair value adjustments. Despite these challenges, the company maintained a strong liquidity position and saw an increase in its listed share price.The Bad: Decline in NAV and net lossThe most immediate negative result for the period was the net loss of €190 million, starkly contrasting with the €471 million profit recorded in the comparable prior period (September 30, 2024).Consequently, Reinet's total NAV decreased by €257 million, or 3.7 per cent, falling from €6,915 million at March 31, 2025, to €6,658 million at September 30, 2025. This translated into a decrease in NAV per share, dropping from €38.04 to €36.62.The primary drivers for the decline in NAV were decreases in the estimated fair value of certain investments, including the Pension Insurance Corporation Group Limited (Pension Corporation), Trilantic Capital Partners, TruArc Partners, Asia Partners funds, and NanoDimension funds.A major factor affecting the decline was the performance of its largest asset, Pension Corporation, which decreased in value by €378 million. This valuation decrease reflected the impact of the weakening of sterling against the euro, amounting to €144 million. The weakening of the US dollar and sterling against the euro during the period generally contributed to the overall decrease in NAV. The weakening currency impacts were substantial; applying current period-end exchange rates to the March 2025 assets would have resulted in an overall decrease in the March 2025 NAV of some €332 million.Furthermore, the unrealised fair value adjustment in respect of "other investments" resulted in a negative adjustment of €106 million..The Good: Strategic transactions and shareholder returnsDespite the asset valuation decreases, Reinet delivered positive news regarding liquidity, shareholder returns, and key investment performance.Reinet paid an increased dividend of €0.37 per share in September 2025, equating to approximately €67 million, up from €0.35 per share paid in September 2024.The total shareholder return since inception (March 2009) improved slightly to 8.4 per cent per annum (up from 8.1 per cent at March 31, 2025). The company’s indicative share price on the Luxembourg Stock Exchange also showed strength, increasing by 8.7 per cent from €23.00 at March 31, 2025, to €25.00 at September 30, 2025. South African investors will note that the JSE-listed share price was ZAR 505.00 at period end, compared to ZAR 445.21 six months prior.Crucially, Reinet reached an agreement to sell its 100 per cent holding in Pension Corporation to Athora Holding Ltd. The transaction is expected to close in 2026, subject to regulatory approval. Even while awaiting closing, Reinet received €303 million in ordinary and special dividends from Pension Corporation during the period.Reinet’s liquidity position is robust: cash and liquid funds stood at €2,111 million. This reserve significantly exceeds the outstanding funding commitments of €679 million made to current investments, with new commitments during the period totalling €298 million.In terms of investment performance, several holdings performed positively:Listed investments increased overall from €125 million to €138 million.Grab Holdings Limited increased in value from €44 million to €54 million, reflecting an increase in its share price.Holdings in SPDR Gold Shares increased from €61 million to €70 million, reflecting the rise in the value of gold during the period.Investments in Coatue funds increased in fair value from €198 million to €232 million.Prescient China funds also saw an increase in fair value, rising from €141 million to €160 million.The net asset value, including dividends paid, reflects a compound growth rate of 8.6 per cent per annum in euro terms since March 2009..Read the results in full by downloading the PDF below

Reinet NAV drops on currency drag, but share price and liquidity remain strong

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