Media Release
Küsnacht, February 28, 2017
Bellevue Group’s operating profit at CHF 14.5 mn – increase in recurring
revenues – assets under management at record high
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Group operating profit declines 41% to CHF 14.5 mn
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Recurring revenues increase to 81% of total revenues

Assets under management up 48% at CHF 7.9 bn
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Net new money of CHF 2.8 bn, of which CHF 341 mn organic (+6%)
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Asset Management contributes CHF 21.4 mn in operating profit thanks to strong second half
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Operating loss of CHF 3.6 mn at Bank am Bellevue – restructuring planned
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Profit before tax just under CHF 1 mn, owing to the impairment and write-down announced in
December of 2016
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Tax-free cash dividend of CHF 1.00 per share proposed

Extension of the Board of Directors
2016 was a turbulent year for both investors and asset managers. The dark clouds that appeared right at
the beginning of the year when oil prices corrected and economic growth in China slowed down persisted
as the year progressed. Investor confidence was hampered by the surprising outcome of the Brexit vote
and the US presidential elections, even though financial markets took these events in stride following a
brief sell-off.
Diversification of expertise broadens Bellevue Group's strategic business
The successful acquisition and integration of the independent German asset manager StarCapital AG
marked another step forward in the selective diversification of Bellevue Group's product and service range.
Building on its strong position in the healthcare sector, this transaction significantly complemented the
Group's competencies and product offering with a variety of multi-asset strategies, global equity and bond
strategies, and ETF-based strategies. The transaction was financed with the first capital increase in the
history of Bellevue Group. Close to three million new registered shares were issued, raising CHF 32.9 mn
in gross proceeds. Furthermore, in the year under review the Group launched new wealth management
services for entrepreneurial private clients. In addition to investment solutions, Bellevue Investment Partners offers asset consolidation and family office services.
Sustained increase of recurring revenues – stronger second half
Like its peers across the financial services industry, Bellevue Group was faced with global market downturns right from the beginning of the year. Those downturns were particularly significant in the biotech and
entire healthcare space. Thanks to an improved operating performance during the second half of the year,
supported by the acquired StarCapital AG, net fee and commission income declined by only 2% to CHF
68.9 mn (2015: CHF 70.6 mn). While the Group’s asset management business was able to increase its
operating income slightly by 1% to CHF 57.9 mn (CHF 57.1 mn), Bank am Bellevue's operating income fell
by 29% to CHF 14.7 mn (CHF 20.6 mn) due to its persistently weak business activities. Recurring revenues
as a percent of total Group revenues rose further to 81% (end 2015: 71%). As expected, strategic initiatives
(the acquisition of StarCapital AG, launch of wealth management services for private clients) contributed to
approximately 9% higher costs at CHF 57.6 mn (CHF 52.7 mn). These developments resulted in a 41%
drop in consolidated operating profit to CHF 14.5 mn (CHF 24.6 mn). Taking into account the losses on
seed capital and all depreciation, amortization and impairment charges, the Group recorded a profit before
tax of CHF 0.9 mn (CHF 0.5 mn).
André Rüegg, CEO of Bellevue Group, on the 2016 results: “Bellevue Group continued to execute its strategy of diversifying its income flows and focusing on recurring revenues in a very demanding market environment in 2016, and it also broadened its operational footprint. Our expanded range of investment competencies allows us to address new client groups. We experience steady new money inflows driven by
growing demand from institutional and private clients. Our investment expertise, rising assets under management and the ensuing improvement in earnings quality build a solid foundation upon which Bellevue
Group can build its growth.”
Asset Management: Assets under management at new record high
Asset Management is increasingly benefiting from the acquisition of StarCapital AG and the resulting diversification of its investment competencies as well as the enlarged offering of products and services. Fee
and commission income rose by about 40% in the second half and assets under management grew by
47% to CHF 7.8 bn. The sharp increase in assets under management is solely attributed to new money
inflows in the amount of CHF 2.8 bn. Besides the acquisition of StarCapital, there was also an organic net
new money inflow of CHF 320 mn, which represents an annualized growth rate of about 6%. Over CHF
190 mn of the increase in new money was from the successful listing of BB Healthcare Trust on the London
Stock Exchange. BB Healthcare Trust is a UK investment company that allows Bellevue to address local
investor needs in the UK in a more targeted way. Moreover, Bellevue investment funds for non-healthcare
themes continue to draw attention, first and foremost the BB Global Macro Fund. Its good full-year performance attracted additional investors with the fund growing to well over CHF 300 mn in assets. BB Entrepreneur Switzerland (16%) and the BB Entrepreneur Europe Small (12%) funds, both performed exceptionally well beating their benchmarks by a wide margin. StarCapital delivered excellent investment results
across the asset classes, first and foremost its flagship fund Huber Strategy 1 (mixed, equity bias) with a
performance of 20%, Winbonds plus (mixed, bond bias) up 12%, Starpoint (international equities) up 19%
and Argos (international bonds) up 10%. The strong performance in the second half of the year could only
partially offset the weakness from the first quarter of the year and segment operating profit for the year
declined by 14% to CHF 21.4 mn (CHF 24.9 mn).
Bank am Bellevue: Further erosion of earnings in core business
Earnings in the Bank's core business continued to erode further. Brokerage activity had already subsided
to a low level in the preceding year and it continued to decline in 2016 due to demanding structural and
regulatory requirement. Corporate Finance earnings were substantially lower as well. The steep drop in
interest income, which mostly reflects the now normalized dividend payout from SIX Group, additionally
weakened the revenue base. Despite these developments, the launch of wealth management services for
entrepreneurial private clients will proceed as planned. The related investments added to the Bank's cost
base, resulting in an operating loss of CHF 3.6 mn (2015 profit: CHF 4.1 mn).
In response to fundamental change in the Bank's operating environment (ongoing margin pressure, growing
regulatory requirements, technology issues) and the resulting erosion of earnings in the Bank's core business activities, we intend to discontinue the Brokerage and Corporate Finance activities at the end of June
2017 (see press release dated February 21, 2017). The tentative restructuring costs of an estimated CHF
3-5 mn will be charged in full to the income statement for fiscal 2017. Bank am Bellevue will continue to
provide services for its custody, trading execution and market-making clients and none of the other operations at Bellevue Group will be affected this planned restructuring.
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Continuation of shareholder-friendly dividend policy
The Board of Directors reiterates its shareholder-friendly dividend policy and will propose a tax-free cash
dividend of CHF 1.00 per share from capital contribution reserves at the Annual General Meeting on March
21, 2017. This underscores the financial strength of Bellevue Group.
Extension of the Board of Directors
The Board of Directors will be extended by one additional member. Dr. Rupert Hengster will be proposed
for election at the upcoming Annual General Meeting. Dr. Hengster is the managing partner of the firm Dr.
Hengster, Loesch & Kollegen and holds a degree in law and economics. He has longtime experience in
various leading positions in the asset management industry in Germany. His professional career includes
positions with Commerzbank in Frankfurt, Westdeutsche Landesbank in Düsseldorf, Sal. Oppenheim in
Cologne, and Edmond de Rothschild Asset Management in Frankfurt.
A full copy of the 2016 annual report can be viewed at www.bellevue.ch
Contact
Media / Investor Relations: Daniel Koller, CFO
Telephone +41 44 267 67 00, Fax +41 44 267 67 01, [email protected]
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