Broad support at the 2018 annual general meeting for Lloyd Fonds AG’s reorientation as an active asset manager

  • All 14 items of the agenda approved with a large majority
  • Lloyd Fonds AG to become a listed non-captive asset manager
  • Market launch with the company’s actively managed retail fund line, digital portfolio management and individual asset management from the 2nd quarter of 2019
  • Achim Plate elected Chairman of the Supervisory Board

All 14 items of the agenda approved with a large majority

With around 70% of the share capital represented, the shareholders of Lloyd Fonds AG (Deutsche Börse Scale, ISIN DE000A12UP29) approved all 14 items of the agenda with votes of between 75.22% and 99.96% at today’s annual general meeting.

Lloyd Fonds AG to become a listed non-captive asset manager

In its presentation to the shareholders, the Management Board reported on the results of the strategy process completed in the last few months. The new Lloyd Fonds Strategy 2019+ is to position the company as a listed non-captive asset manager. Accordingly, the company has decided to discontinue its activities in closed-end investment fund structures and will now be concentrating on other product classes, primarily open-end retail funds. In this connection, it is reviewing the scope for divestments in its current portfolio business.

Market launch with the company’s actively managed retail fund line, digital portfolio management and individual asset management from the 2nd quarter of 2019

Lloyd Fonds AG’s new business model is based on three pillars: LF Line, LF System and LF Assets. LF Line will be designing Lloyd Fonds retail funds featuring active asset management. LF System will be providing customers with optimized asset management based on a digital portfolio algorithm. The main focus of LF Assets is on individual, direct asset management for wealthy and institutional customers as well as family offices.

The aim of the reorientation is to establish Lloyd Fonds AG as a leading asset manager in Germany in the medium term.

A new capital management company is to be established in connection with the implementation of the new business model. An application for the necessary permit is to be submitted with the German Federal Financial Supervisory Authority this year. The Lloyd Fonds brand is to be relaunched at the beginning of 2019. Testing operations and the market launch with all three asset management pillars is scheduled for the 2nd quarter of 2019.

Growth is to be driven organically as well as externally by means of acquisitions. Extensive spending on infrastructure, technology and also personnel are planned in connection with the implementation of the new business model. All told, capital expenditure, some of which will be capitalized, as well as non-recurring expenses of around EUR 2.5 million are expected to arise in 2018 through the implementation of the strategy.

Looking forward, growth in assets under management will be a key driving force for Lloyd Fonds AG’s earnings. Management projects assets under management of more than one billion euros – combined in LF Line and LF System – in 2019, with this figure to rise to over five billion euros by 2023.

Achim Plate elected Chairman of the Supervisory Board

At the annual general meeting, the shareholders elected Achim Plate to the Supervisory Board. At the meeting of the Supervisory Board held immediately after the annual general meeting, the members of the Supervisory Board elected him as Chairman and Dr. Stefan Rindfleisch as Deputy Chairman of the Supervisory Board.

The shareholders also elected Henning Soltau, Prof. Wolfgang Henseler, Marco Scheidler and Dr. Klaus Dimigen as new members of the Supervisory Board. All members were elected for the periods of office which the Supervisory Board had proposed in the invitation to the annual general meeting. The resumes of all members of the Supervisory Board can be found on Lloyd Fonds AG’s website.