Zurich-based Asset Manager Bellevue Group said market turmoil had a significant impact on last year's profits. Also, a board member is not standing for re-election.
After posting record results in 2021, last year looked very different for Zurich's Bellevue Group, with net profit expected to fall 42 percent to 25 million Swiss francs ($27.1 million), as «significant» market dislocations eroded assets under management, the company said Thursday.
The first half was particularly difficult for Bellevue as business development slowed due to market turbulence as central banks ended their expansionary monetary policies. Increasing inflation fears and ongoing geopolitical uncertainties added to the pressure.
Managed Assets
Assets under management fell to 9.4 billion francs, lowering the earnings base by around 25 percent, while unrealized investment losses on its products and financial investments for participatory programs impacted net profit by an additional 10 million francs.
Even though there was no discernable improvement in the operating environment, Bellevue said client assets under management and earnings stabilized in the second half and that its client base remained extremely stable even in this extraordinary environment. In its midyear report, Bellevue said that AuM declined 33 percent from the end of 2021 to 9.6 billion francs.
Board Member Stepping Down
Daniel Sigg will not stand for re-election at the 2023 Annual General Meeting after 16 years on the Board of Directors, Bellevue said. Information on his successor will be given in due course.
Dividend
The Board of Directors will propose an ordinary dividend of 2.00 francs to the annual general meeting (AGM), significantly above the ordinary dividend before the pandemic. Based on the December 31, 2022 closing price it corresponds to a 5.4 percent dividend yield.
The annual report for 2022 will be released on February 28, with the annual general meeting scheduled for March 21.
