Lloyd Fonds Aktiengesellschaft / Forecast/Miscellaneous
15.07.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Weak economic trends and uncertain financial markets placing a damper on
investment behavior
Reduction in forecasts for equity placements and net profit for the year
Hamburg, July 15, 2008. Amid a generally weak overall market, Lloyd Fonds
AG has scaled back its forecast for equity placements and net profit for
the year. It now projects a placement volume of roughly EUR 390 million,
with net profit for the year expected to come to EUR 12 million.
The reasons for this revised forecast are the trends prevailing in the
general market for financial investments, which are also leaving traces on
closed-end funds, and the expected performance in the first half of 2008.
Customers investment behavior is being affected a great deal more sharply
by the global financial crisis than had been assumed at the beginning of
the year. Uncertainties in the capital markets, a weak U.S. economy,
soaring energy prices in tandem with fears of inflation and recession have
made investors reluctant to subscribe to longer-term capital investments.
Instead, they are tending to park their money in fixed deposit accounts. As
recently as the beginning of the year, experts had assumed that the
closed-end fund segment would continue to grow in 2008.
The placement figures at Lloyds Fonds AG remained far below expectations in
the first half of the year. Despite the efforts implemented at an early
stage to restructure sales and marketing, in the course of which Dr. Simon
resigned from the position of COO Sales and Marketing, it has not been
possible to achieve the planned results. All told, the Company now projects
equity placements of EUR 390 million in 2008. Of this, closed-end ship
funds will account for around EUR 160 million, real estate funds for EUR 55
million, other products for EUR 140 million and open-end ship funds
targeted at institutional investors for around EUR 35 million. The main
reason for this substantial shortfall compared with the forecast is the
sustained weakness in the entire market for independently sold investment
products, the postponement of major funds to next year and restraint on the
part of institutional investors. Lloyd Fonds had wanted to place a sum of
around EUR 100 million with institutional investors.
The lower placement volumes will drag down consolidated sales and also
result in a reduction in net profit for the year to EUR 12 million. Despite
the revised guidance, the Company remains committed to its pro-shareholder
dividend policy and plans to pay out around 80-90 percent of its
distributable profit in 2009.
The Management Board has announced that it will be continuing the steps
already taken to reinforce sales and marketing activities and
simultaneously cut costs within the Company. In addition, the company
consistently continues to work on high-quality, innovative funds.
In the wake of the financial crisis, the Company expects the general
weakness afflicting business to continue throughout the rest of 2008.
Turning to 2009, however, it anticipates substantially improved performance
for the market as a whole and particularly also in its own business
especially as the definitive withholding tax, which takes effect in 2009,
does not apply to closed-end funds. This should generate stronger demand
for closed-end funds on the part of sales partners and subscribers.
Contact:
Dr. Goetz Schlegtendal
Lloyd Fonds AG
Amelungstraße 8-10
20354 Hamburg
Tel: +49-40-325678-0
Fax: +49-40-325678-99
Mail: ir@lloydfonds.de
DGAP 15.07.2008
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Language: English
Issuer: Lloyd Fonds Aktiengesellschaft
Amelungstr. 8-10
20354 Hamburg
Deutschland
Phone: +49 (0)40 32 56 78-0
Fax: +49 (0)40 32 56 78-99
E-mail: info@lloydfonds.de
Internet: www.lloydfonds.de
ISIN: DE0006174873
WKN: 617487
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart
End of News DGAP News-Service
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DGAP-News: Lloyd Fonds AG scaling back forecast for 2008
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