Edison Investment Research

Magic Leap – Backwards leap.

Massive setback means more money likely to be needed

Deutsche Beteiligungs – DBAG Fund VI final investment; DBAG Fund VII investment period starts

DBAG Fund VI will be 86% invested after Dieter Braun transaction

Deutsche Beteiligungs (DBAG) has announced that it will invest up to €5.9m for a 13.1% interest in Dieter Braun (Braun), a supplier of cable assemblies to the automotive industry (one of DBAG’s core sectors of expertise). DBAG is co-investing alongside DBAG Fund VI in the management buyout of Braun from financial investor Seafort Advisors. This represents the final investment by DBAG Fund VI, which will be 86% invested following the transaction, and therefore also marks the commencement of the investment period for newly launched €1.0bn DBAG Fund VII.

ARM vs. Intel – Silver bullet?

Last time it was software. This time its emulators

Market Commentary - Housing, Infrastructure, Construction and Services - 8th December 2016

Capita and MJ Gleeson tell us new information this morning. The former’s trading update outlines difficult trading circumstances in many areas and the intended sale of most of Capita Asset Services. Capita has not really surprised anyone today with its news. The need to bolster the balance sheet was clear so earnings were always likely to be diluted in some way either via the sale of a business or the creation of new equity

Witan revises performance benchmark weightings from 2017

The trust’s investment approach remains unchanged

Following a review, Witan Investment Trust (WTAN) has announced changes in the composition of its performance benchmark, which will take effect from 2017. The trust’s investment approach remains unchanged and the revisions to the benchmark reflect changes in the investment universe from which the majority of portfolio holdings are selected. Witan’s composite benchmark provides a reference for performance comparison rather than a guideline for portfolio allocations. The benchmark has evolved over time, with the current benchmark in place since October 2007.

Trump’s new security team

Gen Flynn and Gen Mattis make a fiery and intriguing cocktail

I have resisted commenting on Mr Trump’s election victory until now, because I wanted to let the dust settle and see whom he appointed as National Security Advisor and Defense Secretary. With General (Rtd) Michael Flynn and General (Rtd) James Mattis now confirmed respectively (pending Congressional approval for Mattis), today I take a look at what these appointments signal for foreign policy, and therefore the defence industry, during Mr Trump’s tenure as President of the United States.

Market Commentary - Housing, Infrastructure, Construction and Services - 7th December 2016

Carillion has the floor more or less all to itself this morning with a positive trading update and the announcement that it has achieved preferred bidder status on a £120m high voltage power transmission project in Canada. There is a Carillion conference call at 8.30 that will enlighten us further. The statement today has some aspects that the bears a can point towards and sustain their positions and many elements that are positive and show that the business has good trading prospects, despite the balance sheet issue and can continue to trade through its difficulties. We said almost to itself as Redhall a perennial struggler has issued its Finals for the year to end September 2016. It continues to struggle but might have reached a point where its restructure efforts are proving effective.

Jolla – Safe(-ish) anchorage

Sailfish finds a life line with the Russian government.

Acorn Income Fund announces rollover proposal for 2017 ZDPs

Extending life to 2022 with 3.85% pa gross redemption yield

Acorn Income Fund (AIF) has published proposals to extend the maturity of its 2017 zero-dividend preference shares (ZDPs) by five years. The ZDPs were issued at 100p in December 2011 with a maturity date of 31 January 2017 and a final capital entitlement of 138p, equating to a gross redemption yield of 6.5% pa. Following positive performance from AIF – which invests most of its assets in a portfolio of UK smaller company shares managed by Unicorn Asset Management, and a smaller proportion in a portfolio of high-yielding securities managed by Premier Asset Management – the 2017 ZDPs are set to meet their final capital entitlement in full.

Standard Life European Private Equity Trust - changes to investment policy, dividend policy & fees

Proposed change of trust name to Standard Life Private Equity Trust

The board of Standard Life European Private Equity Trust (SEP) is proposing changes to the trust’s investment policy to remove the current size and geographic restrictions on private equity investments. Notwithstanding, the majority of the portfolio will retain a European focus. In addition, to maximise the returns on cash held pending investment in private equity funds, the board is also proposing to broaden the investment policy in regard to cash management to incorporate listed direct private equity investments, to be utilised opportunistically in suitably liquid investment companies. To reflect the proposed changes, to be voted on by shareholders at SEP’s Annual General Meeting on 24 January 2017, the board is recommending to shareholders that they approve a change in the name of the company to Standard Life Private Equity Trust.