Pure-play asset manager Bellevue said it expects «significantly lower» results for the first half of the year amid signs of recovery.
Pure play asset manager Bellevue Group, based on the shores of Lake Zurich, expects significantly lower earnings for the first half of the year. Poor performance of small- and mid-cap healthcare growth stocks eroded client assets under management and reduced its earnings base by about 20 percent year-on-year, according to an emailed statement Wednesday.
Profit in the first half of 2023 will be approximately 40 percent lower than in the prior-year period «due to significantly lower average client assets under management.» The forecast is based on currently available internal figures through May.
Challenging Markets
Bellevue cited the «continued very challenging market environment,» particularly evident in the biotech sector, one of its core areas.
However, the first signs of recovery are becoming visible and valuation levels are attractive in its key sector, and interest rates are stabilizing. There is also a noticeable revival of investor interest in the healthcare sector, according to Bellevue.
Broad Client Base
Still, the company expects business to remain subdued this year, but that a very stable and broad-based customer base forms a solid foundation for long-term business development. The medium to long-term growth prospects remains intact due to the clear positioning as a specialized asset manager.
Bellevue plans to invest in the further expansion of its investment expertise and infrastructure modernization. This is intended to strengthen the Group's foundation, but acknowledged it will also increase costs.
Publication of the full half-year results 2023 will take place on July 27.
