Swiss asset manager Bellevue Group managed to quadruple its first-half profit year on year despite a rise in costs.

The Bellevue Group quadrupled its profit to 22.5 million Swiss francs ($24.6 million)in the first half of 2021, and grew its assets under management by by 20 percent to a record high 14.4 billion francs, the company said in a press release Thursday.

«Bellevue took advantage of the volatile but positive market environment and the high level of investor interest in healthcare to achieve a record result. I am particularly pleased that we have been able to attract more new money from various groups of customers thanks to our long-standing track record» CEO André Rüegg said in the statement.

Net new inflows in the first half of the year were 682 million francs.

Strong Demand for Alternative Investments

The alternative investments segment (including private equity) also grew. The BB Entrepreneur Private Fund, which was launched in February, was able to acquire 40 million francs in customer funds by June 30.

The strategy enables Swiss investors to co-invest in private, high-growth domestic small and medium-sized enterprises alongside renowned entrepreneurial families. In the area of alternative investments, client assets under management amounted to 1.0 billion francs as of mid-2021, compared with 900 million at the end of 2020.

Higher costs

Costs rose 31 percent on the year to 40.7 million francs. While material costs rose moderately despite ongoing investments to optimize infrastructure, the entrepreneurial compensation model and the associated profit-sharing of the 102 employees led to a 33 percent increase in personnel expenses.

Nevertheless, the cost/income ratio shrank significantly compared with a year earlier to 55 from 64 percent.

«We are looking ahead to about the second half of 2021 with confidence, but we are aware that the coming months will be more challenging. Signs of rising interest rates, an imminent move away from ultra-expansionary monetary policy and inflation fears are gradually clouding the market environment,» Rüegg said.