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27.02.2018 – 07:07

Bellevue Group AG

EQS-News: Bellevue Group generates an operating profit exceeding CHF 29 mn - assets under management reach a record high of CHF 12 bn


EQS Group-News: Bellevue Group AG / Key word(s): Final Results
Bellevue Group generates an operating profit exceeding CHF 29 mn - assets under
management reach a record high of CHF 12 bn

27.02.2018 / 07:00

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Press Release

Küsnacht, February 27, 2018

Bellevue Group generates an operating profit exceeding CHF 29 mn - assets under
management reach a record high of CHF 12 bn
 
Operating profit doubled to CHF 29.3 mn over the yearGroup profit after tax
amounts to CHF 21.5 mn Assets under management grow by 14% to CHF 12 bnAsset and
Wealth Management units report strong organic net new money inflow of CHF 1.3
bn Asset Management posts a record operating profit of CHF 35.2 mn  Bank am
Bellevue incurs an operating loss of CHF 2.5 mn following strategic
repositioning10% increase in cash payout to CHF 1.10 per share Thomas Pixner
appointed as CEO of Bank am Bellevue and a member of Bellevue Group's Executive
BoardBoard expertise to be broadened with the proposed election of Veit de
Maddalena   
Bellevue Group adjusted its strategic profile in 2017 by sharpening its focus on
innovative, value-accretive products and services within the Asset Management
and Wealth Management business. The good results it published for fiscal 2017
demonstrate that sound investment advice and solutions are in demand and much
appreciated both in and outside Switzerland. The asset management boutique's
positive business trends were also supported by favorable capital markets.

New strategy is starting to deliver: Net new money and assets under management
reach record highs

The process of rebalancing Bellevue Group's strategic profile as an
internationally active asset management boutique commenced more than three years
ago with the careful diversification of Asset Management via acquisitions and a
methodical expansion of its product range. This process is to be continued by
focusing Bank am Bellevue on wealth management and investment advisory services
for entrepreneurial private clients.

This more distinctive profile enhanced Bellevue Group's attractiveness in the
eyes of a discerning clientele already during the past year. Institutional and
private clients entrusted Bellevue Group with CHF 1.3 bn in new money, the
highest annual net inflow in the history of the Group. In percentage terms, net
new money grew by 11.5%, which is better than the sector's average growth rate
and management's targeted growth range of 5% to 10%. Asset Management reported
net new money of CHF 842 mn and Wealth Management CHF 421 mn. Wealth
Management's total new money inflow amounted to about CHF 551 mn. This organic
inflow was broad in scope and gained more momentum during the second half of the
year. In Asset Management, strong demand was observed at BB Healthcare Trust, at
the equity strategies within the Healthcare and Entrepreneur themes, at the BB
Global Macro Fund and at StarCapital's fixed income strategies.

André Rüegg, CEO of Bellevue Group, commenting on the 2017 results: "Our efforts
to position Bellevue Group as a distinctive international player with innovative
Asset and Wealth Management services have been met with success. The extensive
investment expertise we offer and the consistent benchmark-beating performance
of our investment solutions are appreciated by clients in and outside
Switzerland. Our results for 2017 demonstrate that the Group has moved to a
higher level of operational performance. We plan to generate more profitable
growth going forward. With Asset Management performing so well on a solid base,
we can astutely invest in the expansion of the Wealth Management business during
the coming years."

Consistent outperformance driven by extensive investment expertise

Bellevue Group's investment experts created sustainable value for clients over
the past year. Overall supportive market conditions were tactfully exploited to
generate excess return. Most of the Group's broad range of investment
instruments ended the year with double-digit gains in absolute terms and handily
beat their benchmarks. Top performers were the BB Adamant Healthcare Index (USD)
and the BB Adamant Asia Pacific Healthcare (USD) funds with a performance of 32%
and 29%, beating their benchmarks by 12% and 11%, respectively. Bellevue Group's
flagship product, BB Biotech AG, delivered another stellar performance, having
gained more than 23% and outpacing its benchmark by more than 7%. Other strong
outperformers were the BB Entrepreneur strategies with annual returns of up to
29% and an excess return of more than 8% versus their benchmarks. The
StarCapital family of funds continued to perform very well too. StarCapital's
two equity funds Priamos and Starpoint ended the year with gains of 16% and 12%.
A pleasing performance was also achieved by its multi-asset vehicles StarCapital
Allocator (11%), Huber Strategy (8%) and the Stars Offensiv (9%) and Stars
Flexibel (8%) funds.

Operating profit doubled to CHF 29.3 mn thanks to higher assets under management

The growth in assets under management had a substantial impact on the operating
results of Bellevue Group. Fee and commission income, the Group's primary source
of income, exceeded the prior-year figure by 37%. Total operating income climbed
37% year-on-year to CHF 98.5 mn thanks to the stronger course of business in the
second half of the year. In addition to this quantitative growth, the overall
quality of the income flows remained at a high level, with recurring revenue
accounting for a high 82% of total revenue. The main driver behind the sustained
income growth was Asset Management, and it will remain so for the near future.
Consolidated personnel expenses increased by 26%, which reflects the Group's
strong operating results and its performance-based compensation systems. Total
operating expenses rose by just under 20%. Thanks to the substantial income
growth and the relatively slower increase in expenses, Bellevue Group posted an
operating profit of CHF 29.3 mn. Its earnings power has thus more than doubled
within the space of a year, which also led to a significant improvement in the
cost/income ratio to 70% from 80% in the previous year. Group net profit after
taxes amounted to CHF 21.5 mn, compared to a minor loss in the previous fiscal
year, which was due in part to impairment charges. Bellevue Group employed 100
people at the end of 2017.

Record operating profit at Asset Management - Wealth Management progressing as
planned

Bellevue Asset Management addresses a broad spectrum of investor needs with its
diverse range of investment solutions. Its internationally recognized core
competencies are backed by a long and strong track record in managing distinct
healthcare strategies and specialized regional funds. The multi-asset strategies
and global equity and bond funds offered by StarCapital round out Asset
Management's diverse range of products, which is attracting increasing interest
from the broader investment community. The substantial increase in assets under
management propelled the 46% growth in the segment's operating income to CHF
84.0 mn. Operating expenses rose as well, primarily due to the increase in staff
numbers and variable pay, by 34% to CHF 49.0 mn. Asset Management's operating
profit rose by 65% to CHF 35.2 mn, setting a new record high for this unit.

At Bank am Bellevue, 2017 was marked by its strategic realignment and the
discontinuation of its Brokerage and Corporate Finance activities. The Bank was
able to turn its undivided attention to the ongoing establishment of its wealth
management activities for entrepreneurial private clients as of mid-year.
Bellevue Investment Partners has developed an active and innovative investment
strategy to achieve attractive risk-adjusted returns. The growing inflow of
assets under management is an indicator of market demand for innovative and
distinctive investment solutions. The narrower focus of the Bank's business
activities is evident on both the income and expense sides and resulted in a
slight decline in its operating loss to CHF 2.5 mn. Assets under management of
about CHF 2.0 bn reflect the positive reception of Bellevue Investment Partners
by entrepreneurial private clients.

As already communicated in the media release of July 26, 2017, Thomas Pixner
joined Bank am Bellevue AG on February 1, 2018. At the meetings of the directors
of Bank am Bellevue AG and Bellevue Group AG on February 26, 2018, Thomas Pixner
was appointed as CEO of Bank am Bellevue AG and a member of the Group Executive
Board of Bellevue Group, effective March 1, 2018. Thomas Pixner brings wealth
management expertise into the Group and will oversee the ongoing expansion of
the Wealth Management business. Veit de Maddalena shall broaden Bellevue Group's
wealth management expertise at the Board level upon his election to the Board of
Directors at the upcoming general meeting of shareholders.

10% increase in cash payout proposed

In light of the sustainable increase in earnings, the Board of Directors will
propose a cash payout of CHF 1.10 per share from capital contribution reserves
at the Annual General Meeting on March 20, 2018. This proposal underscores the
shareholder-friendly payout policy and the financial strength of Bellevue Group.

Outlook

A solid foundation for the next chapter of Bellevue Group's development was
built during the past year. It will be used to generate sustainable growth for
the company as an active asset and wealth manager. The primary focus in Asset
Management will be on further organic growth, while maintaining high levels of
performance and service quality. At the same time, the range of products and
services offered will be flexibly adapted in response to changing client needs
and market conditions. In Wealth Management, the priorities will be growing the
client base and assets under management, which we aim to achieve through organic
growth and appropriate acquisitions. The new Wealth Management business will be
expanded with patience and the attendant investments over the next two to three
years.

The 2017 annual report can be downloaded atwww.bellevue.ch.
 

Events calendar
March 20, 2018 Annual General Meeting
July 27, 2018: Half-year results 2018
 

Contact

Media / Investor Relations: Daniel Koller, CFO
Telephone +41 44 267 67 00, Fax +41 44 267 67 01, ir@bellevue.ch
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Additional features:

Document:http://n.eqs.com/c/fncls.ssp?u=TTUNWMVSER
Document title: Media release

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End of Corporate News
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Language: English

Company:  Bellevue Group AG

          Seestraße 16

          8700 Küsnacht

          Switzerland

Phone:    +41 44 267 67 00

Fax:      +41 44 267 67 01

E-mail:info@bellevue.ch

Internet: www.bellevue.ch

ISIN:     CH0028422100

Valor:    A0LG3Z

Listed:   SIX Swiss Exchange



 

End of News EQS Group News Service

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657771  27.02.2018