GAM Real Estate                 EUR 117         33          87          87          3           90 
Finance Fund                    GBP 100         28          72          75          2           77 
United States land 
development and                 EUR 181         5           160         43          33          76 
mortgages                       USD 215         6           209         48          39          87 
Diamond interests(5)            EUR -           -           116         95          15          110 
                                ZAR -           -           1 160       1 409       254         1 663 
 
 1. Calculated using quarter end foreign exchange rates. 
 2. Calculated using actual foreign exchange rates at transaction date. 
 3. Total of realised proceeds and current fair value. 
 4. The invested amount for Trilantic Capital Partners includes an initial payment of USD 10 million. 
 5. 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 NAV comprises total assets less total liabilities, and equates to total equity under International Financial Reporting Standards. The decrease in the NAV of EUR 229 million during the quarter reflects decreases in the estimated fair value of certain investments including Pension Insurance Corporation Group Limited and derivative assets, offset by increases in the value of British American Tobacco p.l.c. ('BAT'), other listed investments, Trilantic Capital Partners, Snow Phipps funds and co-investment opportunities and Prescient China funds.

Reinet records its assets and liabilities in euro; the weakening of sterling and the US dollar against the euro, offset by the strengthening of the South African rand against the euro has resulted in an overall decrease in the value of certain assets and liabilities in euro terms. Applying the current quarter end exchange rates to the March 2021 assets and liabilities would have resulted in a decrease in the March 2021 NAV of some EUR 41 million.

NET ASSET VALUE PER SHARE

The NAV per share of the Company is calculated by dividing the NAV by the number of shares outstanding (excluding treasury shares) of 184 290 891.

COVID-19

In March 2020, the World Health Organisation classified the COVID-19 outbreak as a pandemic.

Reinet recognises that the long-term financial impact of COVID-19 may still be unknown. However it continues to value its investments in line with International Private Equity and Venture Capital Valuation ('IPEV') guidelines and its approved valuation procedures and methodologies. All investment valuations have been prepared using latest available data and discussions have taken place with fund managers to determine any significant changes in value and any impacts related to COVID-19.

INVESTMENTS

Reinet seeks, through a range of investment structures, to build 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 has invested some EUR 3.1 billion and at 30 June 2021 has committed to provide further funding of EUR 613 million to its current investments. New commitments during the quarter under review amounted to EUR 253 million, and a total of EUR 20 million was funded during the quarter.

Major items impacting the NAV, significant changes in carrying value and new investments during the quarter under review are described below.

LISTED INVESTMENTS

BRITISH AMERICAN TOBACCO P.L.C.

The investment in BAT remains one of Reinet's largest investments 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 holds 56.1 million BAT shares representing some 2.44 per cent of BAT's issued share capital as at 30 June 2021. The value of Reinet's investment in BAT amounted to EUR 1 831 million at 30 June 2021 (31 March 2021: EUR 1 826 million), being some 35.5 per cent of Reinet's NAV. The increase in value reflects the increase in the BAT share price on the London Stock Exchange from GBP 27.74 at 31 March 2021 to GBP 28.00 at 30 June 2021 offset by the weakening of sterling against the euro during the quarter.

Further information on BAT is available at www.bat.com/annualreport.

OTHER LISTED INVESTMENTS

Other listed investments comprised: 


                              30 June 2021 31 March 2021 
                              EUR m          EUR m 
SPDR Gold shares              32           32 
Selecta Biosciences, Inc.     5            5 
Soho China Limited            21           12 
Twist Bioscience Corporation  50           47 
                              108          96

SOHO CHINA LIMITED

Soho China Limited ('Soho') is a Chinese office developer focused on developing and leasing properties in the central business districts of Beijing and Shanghai. Soho developments are known for their modern architecture, with designs from architects such as Zaha Hadid and Japanese architect Kengo Kuma. The company has developed over five million square metres of commercial properties in China.

In June 2021, the Blackstone Group announced its intention to make a general offer to acquire a controlling stake in Soho.

Reinet holds 47 million shares with a market value of EUR 21 million as at 30 June 2021 (31 March 2021: EUR 12 million). The increase in value reflects the increase in the share price following the announcement by the Blackstone Group, offset by the weakening of the US dollar against the euro during the quarter.

Further information on Soho is available at www.sohochina.com.

UNLISTED INVESTMENTS

Unlisted investments are carried at their estimated fair value. In determining fair value, Reinet Fund Manager S.A. (the 'Fund Manager') relies on audited and unaudited financial statements of investee companies, management reports and valuations provided by third-party experts. Valuation methodologies applied include the NAV of investment funds, discounted cash flow models and comparable valuation multiples, as appropriate.

PENSION INSURANCE CORPORATION GROUP LIMITED

Reinet's investment in Pension Corporation is carried at an estimated fair value of EUR 2 514 million at 30 June 2021 (31 March 2021: EUR 2 755 million). This value takes into account Pension Corporation's audited adjusted equity own funds value at 31 December 2020, valuation multiples over the corresponding period drawn from last disclosed industry data and a discount of 10 per cent which takes into account the illiquid nature of Reinet's investment.

The resultant decrease in Reinet's estimated fair value of Pension Corporation is 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 30 June 2021 and the weakening of sterling against the euro in the quarter.

The valuation multiples used in determining the fair value include any current market impacts on the trading prices of listed peers related to the COVID-19 pandemic.

The investment in Pension Corporation represents some 48.8 per cent of Reinet's net asset value at 30 June 2021, compared to 51.2 per cent at 31 March 2021.

Further information on Pension Corporation is available at www.pensioncorporation.com.

PRIVATE EQUITY AND RELATED PARTNERSHIPS TRILANTIC CAPITAL PARTNERS

Reinet's investment in Trilantic Management and related funds is carried at the estimated fair value of EUR 211 million at 30 June 2021 (31 March 2021: EUR 179 million) of which EUR 2 million (31 March 2021: EUR 2 million) is attributable to the minority partner. The estimated fair value is based on unaudited valuation data provided by Trilantic Management at 31 March 2021 adjusted for changes in the value of listed investments included in the portfolios and cash movements up to 30 June 2021. No adjustment has been made by Reinet in respect of the impact of COVID-19 on the valuation of underlying unlisted investments at 30 June 2021 following discussion with Trilantic Management, as Reinet does not expect this to be significant.

The increase in the estimated fair value is due to capital contributions of EUR 22 million and increases in estimated fair values of underlying investments, offset by the weakening of the US dollar against the euro.

Further information on Trilantic is available at www.trilantic.com.

SNOW PHIPPS FUNDS, CO-INVESTMENT OPPORTUNITIES AND MANAGEMENT COMPANY PARTICIPATION

In 2021, a new management company known as TruArc Partners, LP ('TruArc') was formed as a successor business to Snow Phipps Group, LLC ('Snow Phipps'), continuing the historical focus on middle-market controlled private equity investments. In addition to providing investment advice to TruArc Fund IV, TruArc will also serve as a sub-adviser to the existing Snow Phipps funds.

In the quarter ended June 2021, Reinet committed a total of EUR 253 million (USD 300 million) to TruArc Fund IV and a related co-investment vehicle. In addition, Reinet acquired a minority stake in TruArc.

Reinet has to date invested as a limited partner in Snow Phipps II, Snow Phipps III, TruArc Fund IV, TruArc and in five co-investment opportunities alongside Snow Phipps III.

Reinet's investment is carried at an estimated fair value of EUR 143 million at 30 June 2021 (31 March 2021: EUR 161 million), based on the unaudited valuation data provided by Snow Phipps at 31 March 2021. No adjustment has been made by Reinet in respect of the impact of COVID-19 on the valuation of underlying unlisted investments at 30 June 2021, as Reinet does not expect this to be significant.

The decrease in the estimated fair value reflects distributions of EUR 27 million together with the weakening of the US dollar against the euro, offset by capital contributions of EUR 1 million and increases in the value of underlying investments in the quarter.

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