OREANDA-NEWS. August 29, 2016. Edison issues research review on Deutsche Beteiligungs (DBAN)

Deutsche Beteiligungs (DBAG) reported a 9.1% dividend-adjusted NAV return for the first nine months of FY16, despite the sharp market drop following the Brexit vote, which reduced the valuation multiples applied to portfolio investments at the end of the third quarter. In July 2016, DBAG closed the fundraising for DBAG Fund VII with €1bn in commitments, which will significantly increase DBAG's fee income from FY17. DBAG's €200m commitment to this new fund provides scope for its investment portfolio to grow significantly over the medium term. These factors support the change in DBAG's dividend policy to the payment of a stable or rising single annual dividend from FY16.

DBAG shares are trading at a 28.6% premium to NAV compared with an average 17.5% premium over the past 12 months. In our view, this reflects a greater value being ascribed to DBAG's fund services business. DBAG has revised its dividend policy to provide greater visibility over future dividend payments, intending that the current year dividend will be at least in line with the total €1.00 dividend for FY15.