Last month Bellevue issued a profit warning. Now the specialized asset manager doesn't expect the market for its healthcare investments to improve till the end of next year. Assets under management fell sharply.
Bellevue Group saw net profit drop to 8 million Swiss francs ($9.3 million) in the first half of 2023, down from 14.3 million francs in the same period last year, as demand for its healthcare strategies remained soft, it said in a statement Thursday.
«Although global financial markets were more constructive than expected during the first six months of the current year, the market segments relevant to Bellevue have still not shown any signs of a recovery,» Bellevue CEO André Rueegg said in the statement.
SNB Rate Hike Hits AuM
The conditions were reflected in the firm's managed asset base which slipped below 10 billion Swiss francs to 9.6 billion, dropping 25 percent, corresponding to a decline of more than 2.8 billion, according to Bellevue.
It said that the June 16 rate hike by the Swiss National Bank lowered the value of its AuM by more than 400 million francs. Still, despite that and the negative market performance, clients withdrew only 326 million francs, which amounts to about three percent of AuM.
A strong recovery for small- and mid-cap growth stocks within the healthcare sector and a return to previous growth was unlikely to occur before 2024/25, the statement added.
«The first signs of an upward trend in healthcare markets are already visible, although a sustained recovery will depend on the future path of inflation and interest rates,» Rueegg said.
Reduced Executive Board
The board of directors said it has released Jan Kollros from his duties on the Group Executive Board, effective September 1. Kollros who is also CEO of Bellevue Private Markets will be fully focused on the operational management of a newly established business unit.
