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Johannesburg - Investment fund Reinet Investments [JSE:REI] posted a net asset value per ordinary share of €14.21 for the year ended March 2011, up 10% from last year's €12.95.
Dividends received from principal asset British American Tobacco [JSE:BTI] were up to €103m from the previous period's €84m, but operating expenses and performance fees left profit standing at €249m, a drop from the previous period's €691m. No dividends were declared.
Reinet chairperson Johann Rupert credited the fund's investment in BAT for the growth in net asset value.
"For a defensive strategy BAT has served us well. The decision to remain invested in British American Tobacco has helped drive the increase in Reinet's net asset value since it was established and over the past year," Rupert noted.
Looking ahead, the fund would tread carefully due to concerns about the longer-term impact of the quantitative easing activities of the US Federal Reserve and other central banks. The potential consequences of the bail out of weaker members of the euro zone such as Greece, Ireland and Portugal by stronger European Union countries also remain a concern.
The fund will also seek to diversify its portfolio further for the benefit of its investors.
"We will continue to invest in what we consider are sound opportunities, drawing on the expertise of our current partners and looking to build new relationships with like-minded investors and managers."
"The investment in British American Tobacco has been a sound foundation on which to build Reinet's growth to date and we expect to continue to be a shareholder in BAT," Rupert concluded.
Dividends received from principal asset British American Tobacco [JSE:BTI] were up to €103m from the previous period's €84m, but operating expenses and performance fees left profit standing at €249m, a drop from the previous period's €691m. No dividends were declared.
Reinet chairperson Johann Rupert credited the fund's investment in BAT for the growth in net asset value.
"For a defensive strategy BAT has served us well. The decision to remain invested in British American Tobacco has helped drive the increase in Reinet's net asset value since it was established and over the past year," Rupert noted.
Looking ahead, the fund would tread carefully due to concerns about the longer-term impact of the quantitative easing activities of the US Federal Reserve and other central banks. The potential consequences of the bail out of weaker members of the euro zone such as Greece, Ireland and Portugal by stronger European Union countries also remain a concern.
The fund will also seek to diversify its portfolio further for the benefit of its investors.
"We will continue to invest in what we consider are sound opportunities, drawing on the expertise of our current partners and looking to build new relationships with like-minded investors and managers."
"The investment in British American Tobacco has been a sound foundation on which to build Reinet's growth to date and we expect to continue to be a shareholder in BAT," Rupert concluded.
