OREANDA-NEWS. Deutsche Beteiligungs (DBAG) reported a strong performance in the first quarter of FY16 with a 10.6% increase in NAV underpinned by robust earnings and budgets across the carried portfolio. The combined c €10m contribution from the Spheros divestment and a buyout fund realisation roughly balanced the effect of declining market valuations. Investment activity continued at an elevated pace with €21m committed to two new investments. DBAG management has confirmed its FY16 guidance suggesting at least €40m net income, while we note that realised capital gains may provide scope for an increase in the FY16 surplus dividend.

DBAG shares have traded at a premium to NAV since November 2014, which we see explained by the income stream from its fund services business. The recent narrowing of the premium reflects a combination of the shares weakening, along with the wider market and the strong uplift in reported NAV at end December 2015.