A summary of fiscal 2022

Contraction in asset base due to market dynamics and positioning

Change in AuM 2016 – 2022

Temporary consolidation after AuM hit all-time highs in 2020/2021

• AuM shows significant decline of nearly CHF 3.4 bn or –26% to CHF 9.4 bn
• Sustained positive growth from 2018–2021 temporarily interrupted by market headwinds and strategic positioning
• The relatively few defensive investment strategies were likewise affected by interest rate developments and were unable to prevent the sharp contraction
• Still solid fundamentals and currently attractive valuations will boost asset growth when markets recover
• Alternative investment strategies (esp. private market investments) and product innovation will remain a priority in 2023

AuM contraction largely attributable to negative market performance

AuM in 2022

Negative investment performance has wider repercussions – very stable client base an important foundation for future results

• 83% of the decline in AuM attributed to negative market performance
• Despite the significant market volatility, client base remained very stable – outflows represent less than 5% of AuM
• Outflows from alternative investment strategies limited to Global Macro strategy
• Promising developments in the new Private Markets business are not reflected in AuM base (direct investments)

Earnings recede to pre-pandemic levels after «COVID-19 bull-market»

Operating income from asset management activities, 2016 – 2022

Income from asset management activities declines by 26%, mirroring the decline in AuM

• Earnings have «normalized» around the 2019/20 level after the exceptionally strong performance in 2021
• High percentage of recurring income amounting to more than CHF 100 mn reflects the high-quality AuM base with a stable margin
• Contribution from transaction and performance fees still a low CHF 0.6 mn, which creates upside potential
• A mature portfolio of private market investments has been established as an attractive new source of income («carry income»)

Operating expenses

Cost-income ratio (CIR)

(based on operating profit)

• Temporarily higher CIR of 64%, within the short-term target range of 60–65%
• Positive long-term CIR trend temporarily stalled due to losses on investments in own products and in financial assets
• High scalability of business model intact

Strong equity base

Capital structure and management

As at December 31, 2022 (consolidated)

Robust and low-risk financial profile affords flexibility

• Equity capital remains solid thanks to sustained earnings power
• Reduction in goodwill & intangibles (prior year: CHF 48 mn), which reflects ordinary depreciation
• Required level of regulatory minimum capital as a pure asset manager is lower, enabling a very attractive return on equity
• Surplus equity of CHF 39 mn provides leeway for attractive payouts
• Simple and debt-free balance sheet