Bellevue Group returns to profitability - impressive investment performance - Seite 2

"Bellevue Group delivered a satisfying operating performance amid an adverse environment. Thanks to stringent cost discipline and our efforts to improve profitability, we were successful in returning the company back to the profit zone. Proprietary equity research and investment expertise is the basis of our business model, which we will continue to optimize and strengthen. We view stocks as the most attractive asset class over a medium-term horizon and are positioned well to benefit from advancing stock markets," said CEO Urs Baumann with regard to the 2012 results.

Investment recommendations and products beat performance benchmark
With a host of sound investment recommendations and distinct investment vehicles, both the brokerage and asset management operations of Bellevue Group created value for its clients last year. Bank am Bellevue's top 5 recommendations delivered a return of more than 28.2% in 2012, beating the SMI performance by about 13.8%. Viewed as a whole, its recommendations generated a return of 19.0%, compared to a performance of 14.4% for the SMI. In a longer-term comparison going back to 2004, Bank am Bellevue's top 5 recommendations strongly outperformed the SMI, too, with an average return of 15.1% p.a. compared to 3.5% for the SMI. The composite performance, based on all recommendations issued by the bank during the same period, is 14.4% p.a., which is likewise well above the SMI performance of 3.5%.

All of Bellevue Asset Management's investment vehicles generated positive returns for investors. Two-thirds of its investment products and strategies beat their benchmarks. BB Biotech was the top performer with a performance of 42.7% (in CHF) for the year (outperforming its benchmark by 14.2%). This pleasing investment performance is attributable to a discerning and disciplined stock-picking approach and well constructed, diversified portfolios.

Despite international acknowledgment of the stellar investment performance, asset inflows did not increase as much as expected, mainly because of the difficult market environment. Total assets under management remain roughly unchanged year-on-year at CHF 3.6 billion. 

Bank am Bellevue: Increase in brokerage market share
Being a pure equity house offering research/brokerage and corporate finance services, business at Bank am Bellevue was clearly affected by the general market environment, which was marked by risk-averse institutional investors and low trading turnover. Despite the proven success of its stock recommendations, total operating income declined by 19% from the prior-year level to CHF 18.5 million. This decrease was partially offset by a 13% decline in operating expenses to CHF 18 million. Resulting after-tax profit amounted to CHF 1.6 million. Bank am Bellevue's position as a first-class local broker allowed it to selectively strengthen its international Sales Team during the year under review. Thanks to these anti-cyclical investments, the company increased its share of the brokerage market in Swiss equities by more than 13%. With a Tier 1 ratio of 49%, Bank am Bellevue has a solid balance sheet and capital structure. Bank am Bellevue shareholders' equity as of year-end 2012 amounted to CHF 41.8 million.