Bellevue Group breaks even, bottom-line result of CHF 0.2 mn – significant upside potential in healthcare sector – further improvement in performance

Ad hoc announcement pursuant to Art. 53 of the SWX Listing Rules

Zurich, July 24, 2025 

Half-year results for 2025

Bellevue Group breaks even, bottom-line result of CHF 0.2 mn – significant upside potential in healthcare sector – further improvement in performance

• The historically low valuation of the healthcare sector, combined with significant Dollar weakness, is impacting investment performance and the asset base, which declined by 16% to CHF 4.8 bn in the first half
• Operating income declined 23% to CHF 27 mn due to lower asset base and unrealized market-driven losses on financial investments
• Operating expenses were reduced by 11% year-on-year thanks to lower personnel expenses – full effect of the initiated cost-cutting and optimization measures expected in 2026
• Further improvements in investment performance thanks to optimization of portfolio management operations – healthcare sector with promising rebound potential
• Management buy-out of adbodmer subsidiary under consideration as part of efforts to sharpen the business profile and adapt to new market realities

Veit de Maddalena, Executive Chairman of the Board of Directors of Bellevue Group, on the first-half 2025 results: “Bellevue Group was confronted with very challenging market conditions during the first half of the current year. Valuations in the healthcare sector, a vital sector for us, have fallen to historical lows and healthcare continues to lag far behind the global market in terms of performance. The ongoing geopolitical uncertainties and the resulting pronounced weakness of the US dollar further weighed on Bellevue’s performance. During the period under review we maintained our efforts to adapt Bellevue Group to changing market realities and to restore profitability, while ensuring that Bellevue is well-positioned for a sustained market recovery. We strongly believe that the healthcare sector today offers very enticing entry points and is poised for an upswing. Thanks to the ongoing optimization of our portfolio management operations, we again improved the performance of our investment products with most of our healthcare strategies beating relevant benchmarks. This makes us confident that Bellevue will return to a sustained growth trajectory going forward.”

Weak dollar intensifies market-driven reallocation of client assets

Assets under management fell by 16% or CHF 940 mn to CHF 4.8 bn at the end of the first half due to adverse market developments. The sub-par performance of the healthcare sector and the associated reallocation of client assets fueled the decline, compounded by the weakness of the US dollar, which lost more than 12% of its value against the Swiss franc during the period under review. Since more than 75% of Bellevue’s portfolio investments are denominated in USD, the dollar weakness lowered assets under management by about CHF 550 mn.

Average assets under management for the period were 24% lower than in the prior-year period (16% lower compared to the end of 2024), which resulted in a corresponding decline of 23% in income from asset management services to CHF 27.0 mn. Unrealized investment losses on financial assets due to market developments had an additional negative impact of CHF 2.0 mn on operating income. Total operating income therefore declined by 31% year-on-year to CHF 25.0 mn. Meanwhile, the measures we have taken to optimize operating costs will not fully take effect until 2026. Operating costs declined by 11% to CHF 22.7 mn, driven primarily by a reduction in personnel expenses. This led to a break-even bottom line of CHF 0.2 mn (prior-year period: net profit of CHF 7.4 mn).

Most of Bellevue’s healthcare strategies beat their benchmark

The relative performance of Bellevue’s investment products improved once again during the period under review thanks to the further optimization of its portfolio management operations. Most of Bellevue’s healthcare strategies delivered positive first-half returns in USD and also outperformed the MSCI World Healthcare Index. The Bellevue Emerging Markets and Bellevue Digital Health funds posted strong year-to-date returns of 11% and 6.6%, respectively, placing them in the first quartile of their Lipper peer group. Bellevue Healthcare Strategy (CH) (+5.8%), Bellevue Sustainable Healthcare (+ 5.1%) and Bellevue Healthcare Strategy (LUX) (+5.0%) also impressed with their attractive performance. These pleasing returns were undone by the weak dollar, as performance figures turned negative when translated into Swiss francs.

BB Biotech AG also performed well during the first half. The positive effects of operational and staff optimizations as well as the progress made by several mid-cap positions sustained the company’s forward momentum. Additionally, takeover activity had a supportive effect on its portfolio performance. Bellevue’s niche strategies likewise delivered strong returns. The Entrepreneur funds performed particularly well, delivering impressive returns in both absolute and relative terms. The Bellevue Entrepreneur Europe Small (in EUR) and Bellevue Entrepreneur Switzerland (in CHF) funds stood out with half-year returns of 18.7% and 12.9%.

Business model adjusted to new market realities

The market environment for Bellevue Group has been in a constant state of flux for several years now and Bellevue’s business model has been repeatedly adapted during this time to address the changing market realities. Proven investment expertise, dedicated employees and a strong, debt-free balance sheet serve as a stable foundation during this process.

Effective June 1, Veit de Maddalena, the Executive Chairman of the Board of Directors, assumed operational management responsibility for the Group and Prof. Dr. Urs Schenker, who has been on the Board of Directors since 2019, was appointed Lead Independent Director. Markus Peter, Head Investments at Bellevue Group since 2009 and a member of the Group Executive Board since 2024, assumed executive management responsibility for Bellevue Asset Management, Bellevue Group’s largest operational subsidiary. The previous CEO Gebhard Giselbrecht decided to accept a new career opportunity outside Bellevue Group.

After 16 years at Bellevue, Patrick Fischli, Head Distribution since 2009, member of the Executive Board of Bellevue Asset Management and member of the Group Executive Board since 2024, will be leaving the Group by the end of the year at the latest. Patrick has been instrumental in establishing and developing Bellevue's distribution structure and sales team. Florin Boetschi will take over responsibility for sales activities and become a member of the Executive Board of Bellevue Asset Management. Florin Boetschi has been with Bellevue Group for four years, most recently heading up sales activities in Asia and our Singapore office. We would like to thank Patrick for his many years of valuable service to Bellevue Group and are delighted to have found a competent internal successor for this key role in Florin. This new management structure ensures seamless execution with a high level of continuity, which is in the interest of all company stakeholders.

Bellevue further sharpened the focus of its business activities in the first half of 2025. The funds and mandates of Bellevue Asset Management Germany will be managed by the Multi Asset Team of Bellevue Asset Management in Zurich as of July 1. Bellevue Asset Management Germany will then be exclusively engaged in sales and distribution.

As a further step in refining the business model, a management buyout of the subsidiary adbodmer, which specializes in private equity, is being considered. Close cooperation is planned to continue. This transaction would further reduce the complexity of the Group’s business activities while enabling it to still benefit from adbodmer's private equity expertise for the Bellevue Entrepreneur Private KmGK.

A leaner and more efficient organization will provide more freedom to pursue targeted growth initiatives.

Healthcare remains a strategic pillar with a strong outlook and multiple trend reversal triggers

Despite all the challenges of recent years, the healthcare sector is still a structural growth market. Industry innovation, demographic change and stable cash flows make it an attractive long-term investment case – regardless of any temporary swings in investor sentiment.

Several indicators suggest now is an opportune time to go against the current and buy the sector:

• Healthcare’s weight in the S&P 500 has fallen below 10% – the lowest it has been in more than a decade. After reaching a similar low point in 2011, the sector bounced back and outperformed the broader market by more than 70% over the next four years.
• Healthcare is currently trading at a discount of about 20% to the global equity market. A similar valuation gap of this magnitude was last seen five years ago.
• Since the summer of 2024, healthcare has underperformed the MSCI Defensive Sectors Index by more than 10%.

Moreover, there are several potential triggers for a turnaround in the healthcare sector emerging later this year. The current cloud of uncertainty hovering over the healthcare industry in the US is likely to fade as official government policies are enacted, enabling companies to make decisions with more confidence. The final decisions on controversial issues such as Most Favored Nation drug pricing or import tariffs are likely to be less draconian in order to ensure Congressional passage. Meanwhile, the sector continues to be characterized by innovation-driven margins, stable sources of revenues, non-cyclical demand, and high levels of efficiency.

Foundation for renewed growth

Bellevue Group is entering the second half of the year with a clear plan: Continue to simplify organizational structures, strengthen relevant products and selectively intensify sales activities, supported by some tailwind from a better investment performance and continued high quality customer service. An operational turnaround has been initiated, but the full impact of the action taken will not be visible until 2026.

Visit www.bellevue.ch or report.bellevue.ch/H12025 to download the full report and investor presentation for the first half of 2025.

 

Contact
Investor Relations:  Stefano Montalbano, CFO Bellevue Group
Tel. +41 44 267 67 00, smn@bellevue.ch

Media Relations: Jürg Stähelin, IRF
Tel. +41 43 244 81 51, staehelin@irf-reputation.ch

Bellevue 
Bellevue is a specialized asset manager listed on the SIX Swiss Exchange with core competencies covering healthcare strategies, alternative investments (including private equity) and selected niche strategies. Established in 1993, Bellevue, a House of Investment Ideas staffed by 90 professionals, generates attractive investment returns and creates value added for clients and shareholders alike. Bellevue managed assets of CHF 4.8 bn at the end of June 2025.