Press release

Lloyd Fonds AG: considerable increase in earnings expected for 2020

- Management Board lifts forecast following positive FONDS performance

- Positive EAT in excess of EUR 1.5 million in H2 2020 (H1: EUR -3.8 million)

- Positive EBITDA of more than EUR 3.2 million in H2 2020 (H1: EUR -2.4 million)

- AuM to rise to more than EUR 1.55 billion (previous year: EUR 1.06 billion)

Hamburg, 14 December 2020.

Management Board lifts forecast following positive FONDS performance
All funds in the LLOYD FONDS segment are participating in the very positive market development seen in November 2020, in particular also the Lloyd Fonds - WHC Global Discovery (WHC) multi-asset fund. The fund reached an all-time high on 4 December 2020 with performance of around 16 % (R tranche) since the beginning of 2020. Looking at the current market situation and the 11 remaining days of trading, the Management Board of Lloyd Fonds AG expects that the WHC fund will, in all likelihood, generate a considerable performance fee of more than EUR 7.5 million, albeit subject to any change resulting from fluctuations in the fund price in the period leading up to the invoicing cut-off date for performance fee of 30 December 2020.

Since its launch on 1 October 2010, the WHC fund has averaged an annual return of more than 9.75% in the last ten years. With an annual performance at this level and a current volume of around EUR 500 million, the fund can be expected to generate EUR 5 million in performance fee p.a. at a hurdle rate of 4 %.

As the earnings projections for Lloyd Fonds AG have not included any performance fees to date given the Covid-19 situation, Lloyd Fonds AG (ISIN: DE000A12UP29) now expects earnings to increase considerably in the 2020 financial year taking these fees into account.

Following the successful start-up and integration phase for the seven funds, the financial invoicing periods in the LLOYD FONDS segment are spread over all four quarters, ensuring the structured distribution of performance fee revenue streams for the Lloyd Fonds-Group throughout the financial year. The Lloyd Fonds - Global Multi Asset Selection multi-asset fund, which has already recognised additional performance fees in the current fund price, will be invoiced at the end of the first quarter of 2021.

Positive EAT in excess of EUR 1.5 million in H2 2020
The addition of the WHC performance fee means that the second half of 2020 is expected to bring a consolidated profit for the period, before non-controlling interests, in excess of EUR 1.5 million (H1 2020: EUR -3.8 million).

This would clearly outstrip the forecast published on 26 August of this year, which suggested that this figure would reach the break-even point in the second half of 2020.

Positive EBITDA in excess of EUR 3.2 million in H2 2020
The operating result (EBITDA) is likely to come in at more than EUR 3.2 million in the second half of 2020 (H1 2020: EUR -2.4 million).

This means that, in the very first year of the integration of Lange Assets & Consulting GmbH and SPSW Capital GmbH, and despite the start-up costs associated with the FinTech LAIC, the Management Board expects to see positive EBITDA of around EUR 1.0 million at group level for the entire business year 2020.

Dipl.-Ing. Achim Plate, Chief Executive Officer (CEO) of Lloyd Fonds AG, said:
"The fact that we are lifting our forecast goes to show that Lloyd Fonds AG is on the right track with its systematic strategic realignment as part of the strategy for 2023/25. One aspect that is particularly encouraging is that the positive results for our clients will result in a performance fee even in a crisis-ridden year that has been marred by the Covid-19 pandemic. The combination of entrepreneurial spirit, fund managers who are experienced in sustainable asset management, and the implementation of digital innovations will be the main factor driving our continued growth going forward."

AuM expected to rise to more than EUR 1.55 billion (previous year: EUR 1.06 billion)
The assets under management (AuM) of Lloyd Fonds AG in the three segments, LLOYD FONDS, LLOYD VERMÖGEN and the FinTech LAIC, are expected to rise considerably, with organic growth of more than 45 per cent, to more than EUR 1.55 billion (previous year: EUR 1.06 billion).

The Lloyd Fonds Group is expected to release its preliminary figures for the 2020 financial year in February 2021.

You can find the current investor presentation at: https://www.lloydfonds.de/investor-relations/veroeffentlichungen

Important information:
The information set out above, particularly the information regarding the earnings performance of Lloyd Fonds AG, performance fees and AuM development, explicitly reflects preliminary results. Depending on how the capital markets develop, it is still subject to change between now and year end.

About Lloyd Fonds AG:
Lloyd Fonds AG is an innovative listed financial institution that generates returns for its partners and clients through active, sustainable and digital investment solutions.

The company, which has no ties with any particular bank, has been listed on the stock market since 2005. Lloyd Fonds AG has been listed in the Scale segment (ISIN: DE000A12UP29) of Deutsche Börse in Frankfurt since March 2017.

In its LLOYD FONDS segment, the company positions itself as a specialist provider of benchmark-agnostic equity, bond and multi-asset funds with a clear focus on active alpha strategies. All of the funds, which are managed by experienced fund managers with proven track records, apply an integrated sustainability approach to the investment process.

The LLOYD VERMÖGEN segment offers private wealth management focusing on the proactive, holistic 360 implementation of the individual objectives of high-net-worth clients.

In the LAIC segment, the FinTech LAIC offers digital and risk-optimised investment solutions for digital portfolio optimisation, using a proprietary system based on artificial intelligence (LAIC-ADVISOR(R)) for private investors and institutional clients alike.

The aim of the strategy for 2023/25 is to position Lloyd Fonds AG as an innovative quality leader in fund and asset management in Germany.

Contact:
Hendrik Duncker
IR/PR
Lloyd Fonds AG
An der Alster 42
20099 Hamburg
Tel: +49-40-325678-132
Fax: +49-40-325678-99
Mail: [email protected]