LAIQON AG — Earnings Release 2006

Nov 23, 2006

News Details

Corporate | 23 November 2006 08:15

LLOYD FONDS REPORTING HIGHER PROFIT DESPITE MUTED MARKET CONDITIONS

Corporate News transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— Delayed launch of new product exerting pressure on placement figures Hamburg, November 23, 2006. Listed company Lloyd Fonds AG, one of the leading initiators of high-yield investment products, is reporting consolidated profit of EUR 12.8 million for the first nine months of this year, an increase of more than 24 % over the same period one year earlier, despite the muted sector conditions. This was accompanied by a rise of just under 3 % in sales to EUR 51.2 million, while equity placements widened by 15 % to EUR 230 million. Equity of EUR 178 million (77%) was invested in ship funds (previous year EUR 172 million, 86%) and EUR 52 million (23 %) in traded endowment policy funds (previous year EUR 27 million, 14 %). Further progress made in diversification progress In the third quarter of 2006, Lloyd Fonds’ activities centered around preparations for and the arrangement of funds in asset classes in which it had previously not been active. With one real estate fund and its first private equity fund, Lloyd Fonds now covers five different asset classes. The ‘Immobilienportfolio Köln’ fund invests in a series of office buildings located in Cologne, the German media capital and a high-growth metropolitan region. The fund is characterized by a balanced tenant structure and long-term leases. In the private equity segment, Lloyd Fonds was able to recruit Lehman Brothers, one of the leading US investment banks, as a partner. This fund gives private investors access to a very successful series of funds of funds. Contrary to original planning, however, the commencement of retailing activities for these products has been postponed to the fourth quarter, with a corresponding effect on placement figures and sales. Further new products are in the pipeline: A fund comprising Dutch real estate will be available exclusively to our Austrian investors in December. Working in collaboration with Sal. Oppenheim bank, Lloyd Fonds has been developing the world’s first open-end ship fund since the beginning of the year. Targeted primarily at institutional investors, this fund is currently still in the regulatory approval phase. Looking forward, the new offering and the growing tendency for income to be distributed over the entire term of investment funds will result in a substantial increase in recurring income. Says Dr. Torsten Teichert, CEO of Lloyd Fonds AG, ‘This year, we have managed to develop closed-end funds in two new asset classes as well as the world’s first open-end ship fund. As a result, we are not only offering closed-end funds in five different asset classes but also targeting institutional investors for the first time with this structured investment product. We will be systematically continuing this diversification progress both in the closed-end fund area and with respect to new investment products. In this way, we will be able to increase long-term income from asset management and investor care activities.’ Damper on sector sentiment According to a recent analysis conducted by rating agency Scope, which specializes in closed-end funds, sentiment in the sector has cooled off markedly in the course of 2006. Although the product range has since been adjusted to take account of the abolition of tax privileges in 2005, independent retailers in particular have not yet come up with an optimum strategy for the placement of solely yield-oriented products. At the same time, there is evidence suggesting than banks are increasingly retailing closed-end funds. At around EUR 4 billion in the first half of 2006, equity placements were down roughly 28 % in the market as a whole compared with the same period one year earlier. Profit guidance of EUR 19 million confirmed Against this backdrop, Lloyd Fonds AG assumes that it will not be able to fully meet the full-year guidance for 2006 which it issued in January. This particularly applies to equity placements: after initially projecting a volume of EUR 370 – 390 million, Lloyd Fonds now expects to report a sum of only EUR 300 million (2005: EUR 286 million). As a result, the full-year sales forecast for 2006 has been scaled back from EUR 90 million to EUR 65 million (2005: EUR 71 million). Despite this, profit should grow again and, at around EUR 19 million, exceed the previous year by around 11 %. In January, Lloyd Fonds had issued profit guidance of EUR 19 – 20 million. As a result, distribution of a dividend of at least EUR 1.20, i.e. in excess of the previous year (EUR 1.10), will be possible. For further information please refer to: Dr. Goetz Schlegtendal Head of Corporate Communications Lloyd Fonds AG Neuer Wall 72 20354 Hamburg Tel : +49 (0)40 32 56 78 – 148 Fax : +49 (0)40 32 56 78 – 99 eMail: schlegtendal@lloydfonds.de Internet: www.lloydfonds.de (c)DGAP 23.11.2006 ————————————————————————— 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 WWW: www.lloydfonds.de ISIN: DE0006174873 WKN: 617487 Indices: Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service —————————————————————————