- 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 the company’s annual general meeting.
In addition to passing resolutions ratifying the actions of the Management Board and the Supervisory Board, electing the independent auditor and approving the amendments to the articles of incorporation required to implement the planned repositioning of the company, the shareholders granted authorization for the issue of fresh capital in order to increase Lloyd Fonds AG’s flexibility and provide additional scope for its planned growth. This included the creation of new authorized capital and authorization to issue convertible bonds and/or warrant-linked bonds, profit-participation rights and/or profit-participation bonds with the possibility of excluding preemptive shareholder subscription rights and to create new contingent capital.
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.
LF Line is to comprise a clearly structured range of open-end investment funds for a broad retail target group actively managed by experienced asset managers with clearly defined investment goals and transparent return and risk profiles. A total of up to fifteen different funds are to be established as equity, fixed-income, mixed and open-end real estate funds. Investments in exchange-trade funds (ETFs), i.e. index-oriented passive investment products, are not planned.
“We will be working closely with savings banks, cooperative banks, broker pools and asset managers in our selling activities for the LF Line funds. To this end, we will be making our digital range transparent for both our sales partners and for our customers,” says Jochen Sturtzkopf, Chief Sales Officer at Lloyd Fonds AG.
This will be based on the experience contributed by the active fund managers as well as the dedicated “Lloyd Fonds Digital Asset Platform 4.0”. This supports the fund managers’ activities by providing real-time digital data analyses and facilitating optimized risk management in order to achieve the defined risk/reward profile within a given fund strategy.
The second pillar of the new business model, LF System, entails the development of digital portfolio management. Using an innovative algorithm, digital portfolio management will define the optimum composition of a fund portfolio based on each individual risk profile. Developed by Lloyd Fonds, the algorithm will have access to a universe of more than 2,500 retail funds all of which are actively managed by third parties.
LF Asset, the third pillar of the new business model, entails classic product offerings for family offices, wealthy customers and institutional investors in the form of individual and direct asset management. This is to offer customers integrated solutions on a multi-generational basis in a personal dialog. Such solutions will also include alternative real assets, particularly real estate. Lloyd Fonds AG will be able to benefit from part of its long-standing expertise in this area. In addition, the LF Line and LF System products as well as direct investments in equities and fixed-income instruments together with other products will form part of this service. The acquisition of an already profitable asset management company is being considered for the LF Asset pillar.
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.
Lloyd Fonds AG’s growth is to be driven organically as well as externally by means of acquisitions. Extensive spending on infrastructure, technology and particularly also new employees will be necessary for 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 planned 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.
“We have defined a clear goal: Lloyd Fonds AG will be pursuing active and sustainable investment strategies to become a leading asset manager in Germany,” says Chief Financial Officer Klaus M. Pinter, describing the new Lloyd Fonds AG.
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.
“I thank all shareholders for the confidence that they have shown by voting in favor of repositioning Lloyd Fonds AG,” says Achim Plate, the new Chairman of Lloyd Fonds AG’s Supervisory Board. “My colleagues and I on the Supervisory Board will be supporting management with all our experience. I expressly thank Dr. Rindfleisch for his successful work as Chairman last year and look forward to continue working with him.”
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.
The voting results for each of the items of the agenda and the resumes of all members of the Supervisory Board can be found on Lloyd Fonds AG’s website. Similarly, the Management Board’s presentation and the speeches held by the members of the Management Board will be available for downloading shortly.