Deutsche Beteiligungs – reduced earnings guidance for FY18
Lower market valuation multiples have materially affected H118 net income
Deutsche Beteiligungs (DBAG) has announced that it expects to report net income for the year to 30 September 2018 that is moderately (10% to 20%) lower than the €43.0m average of the last five financial years (the reference for previous guidance), equating to net income of between €34m and €39m for FY18. Previous guidance, first given at the time of the FY17 results and confirmed with Q118 results, was for a significant (more than 20%) increase in net income. The revised forecast is based on DBAG’s c €20m expected net income for H118, which reflects lower market valuation multiples being applied in the valuation of portfolio companies at 31 March 2018. DBAG’s guidance assumes constant market valuation multiples and so is subject to upward or downward revisions following significant market moves.
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Edison clients win at the Investment Week Investment Company of the Year Awards
Special recognition for Foreign & Colonial IT on 150th anniversary
Investment company research clients of Edison picked up several of the honours at the Investment Week Investment Company of the Year Awards last night in London.
HBM Healthcare Investments top holding AAA receives takeover bid from Novartis
Tender offer for 100% of radiotherapeutic oncology specialist Advanced Accelerator Applications at 25% premium to 30 September valuation
Switzerland-based global healthcare giant Novartis has announced a takeover bid for Advanced Accelerator Applications (AAA), the largest holding of specialist investment fund HBM Healthcare Investments (HBMN). The deal values AAA, whose Lutathera treatment for neuroendocrine tumours was granted EU approval in September 2017, at US$3.9bn.
Witan Investment Trust announces the appointment of two European equity managers
Appointment of CRUX Asset Management and S. W. Mitchell Capital
Witan Investment Trust (WTAN) has announced the appointment of two European equity managers: CRUX Asset Management and S. W. Mitchell Capital. CRUX is a specialist asset management company with an emphasis on European equities and S. W. Mitchell is an investment boutique focused exclusively on European equities. Each manager has been allocated c 5% of WTAN’s assets (c £100m), funded by the liquidation of the pan-European portfolio that had been managed by Marathon Asset Management, plus an additional £24m from WTAN’s cash resources. Both portfolios will be benchmarked against the FTSE Europe ex-UK index. Following the transition, WTAN will have 10 external managers, each running regional, high-conviction mandates. WTAN’s executive team will continue to manage up to 10% of the trust’s assets in collective funds.
Read more...Qatar Investment Fund proposes broader investment remit and change of name
Proposed greater flexibility to invest across the Gulf Cooperation Council (GCC) countries rather than largely in Qatar
Qatar Investment Fund (QIF) has announced a proposed change in its investment policy to remove the current 15% limit on investment in GCC countries outside of Qatar. It has also put forward other proposals including: a tender offer for up to 10% of issued share capital; cancellation of the 2018 continuation vote, to be replaced by a 2021 vote and every three years thereafter; a tender offer in 2020 for up to 100% of issued share capital, subject to shareholder approval; and changing the company name to Gulf Investment Fund. All these proposals, with the exception of the 2020 tender offer, will be put forward at an upcoming extraordinary general meeting (EGM).
Read more...Finsbury Growth & Income Trust announces new holding in Manchester United
First new purchase since 2015
Finsbury Growth & Income Trust (FGT) has announced that manager Nick Train has initiated a holding in Manchester United. He is well renowned for his low-turnover investment approach and this is the first new position in FGT’s portfolio since the purchase of Rémy Cointreau in 2015. Manchester United listed on the New York Stock Exchange in August 2012 at a price of $14 per share. Its share price subsequently rose above $19 and is currently trading at c $17. The football club has a market cap of $2.7bn and currently offers a dividend yield of 1.07%. Train believes that the value of Manchester United’s global franchise is not reflected in its current share price. He cites the recent announcement of the sale of NBA basketball team Houston Rockets for $2.2bn, suggesting that Manchester United could be worth in excess of $5bn.
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