Shareholder letter

Dear Shareholders,

Bellevue Group looks back on a difficult year for the healthcare sector, and a year in which we took decisive action to sharpen our focus on the company’s proven strengths. Positive developments already seen during the second half of 2025 have reinforced our confidence in our strategic and operations roadmap.

Global stock markets sustained their upward trajectories last year and set new record highs in many cases, driven by tech stocks. Meanwhile the general market environment continued to be shaped by geopolitical friction, political uncertainty and pivotal central bank action. Robust corporate earnings growth and central bank policy shifts were stabilizing factors, while the ongoing war in Ukraine, a fragile Middle East and trade policy announcements, especially from Washington, triggered bouts of volatility. The persisting weakness of the US dollar drew attention to the growing influence political factors are having on capital markets.

Growth in the healthcare sector continues to lag behind the total market – initial signs of a trend reversal are emerging

2025 was another year of underperformance for the global healthcare sector relative to the total market. Heightened levels of policy and regulatory uncertainty with respect to drug pricing policies in the US exacerbated by all the talk about tariffs, along with unrelenting pressure on profit margins and market valuations in the face of patent expiries, and the post-pandemic normalization of vaccine and diagnostic testing market volumes were mainly to blame for healthcare’s underperformance in 2025. In view of these circumstances, the healthcare sector with its defensive tilt was underweighted and allocations to growth sectors, big tech and AI in particular, were increased.

That said, there were some signs of a stabilization during the final months of the year. Pricing and reimbursement agreements reached by the White House and pharmaceutical majors increased regulatory predictability and drew institutional investors back into the sector. Moreover, the actual US tariffs on imports turned out to be lower than initially threatened – or were never even imposed. The fundamental momentum remained strong: High levels of M&A activity, positive clinical news flow and a selective revival of the IPO market bolstered investor confidence. This brightening environment also had a positive impact on our business, albeit very late in the period under review.

Even after its rebound in the fourth quarter of 2025, the healthcare sector is still trading at around 10% discount versus global equities, and it remains a solid structural growth play on top of that. Innovative breakthroughs in oncology, progress in the treatment of chronic diseases, big cash piles at large biopharmaceutical companies and growing medical technology markets represent reliable, powerful growth drivers. On top of that, emerging markets are steadily becoming healthcare innovation powerhouses in their own right. This general environment remains very attractive for Bellevue as an active asset manager.

BB Biotech AG and Entrepreneur funds outperform benchmarks

Every healthcare investment strategy of Bellevue Group showed a positive return in USD for 2025. Our flagship product BB Biotech AG advanced by over +53% over the year, beating its benchmark by about 20%. This reflects the biotechnology sector's underlying momentum as well as R&D progress, regulatory tailwinds and several takeover bids that targeted its portfolio companies. The Bellevue Biotech (CH) Fund benefited from these developments as well and delivered a positive return of 33%. Bellevue Emerging Market Healthcare showed a return of +14.8% and outperformed its benchmark, while Bellevue AI Health and Bellevue Obesity Solutions returned +14.7% and +14.1%, respectively. Performance data in Swiss francs was significantly weaker, however, due to the depreciation of the US dollar. The launch of the Bellevue Healthcare ETF in September marked the latest addition to our investment product portfolio. The new fund achieved a post-launch performance of +11.7%.

Our European small- and mid-cap products also showed positive developments. The Bellevue Entrepreneur Europe Small Fund returned +27.5% in EUR year-on-year and beat its benchmark by more than 8%. This award-winning fund ranked among the top 3 funds within its peer group of approximately 80 funds. Bellevue Entrepreneur Switzerland and Bellevue Entrepreneur Swiss Small & Mid Lux also benefited from the general recovery in the small- and mid-cap space and closed the year with a return of +18.3% and +17.3% in CHF, respectively. Bellevue Global Macro achieved a positive return of 5.6%, Bellevue Global Income +1.3% in EUR. These performance figures underscore the advantages of our active stock selection approach across different market segments.

Focused business model and reduced cost base

In view of the unrelenting, challenging market environment, we diligently focused Bellevue Group's business model more sharply on its core competencies in healthcare, the small- and mid-cap entrepreneur space, and multi-asset strategies during the past year. We also achieved durable improvements in efficiency and effectiveness and streamlined, harmonized and centralized operating processes in product management as well as in development and administration.

Non-strategic business activities were downsized or divested. adbodmer AG, the private equity subsidiary, was sold by way of a management buy-out and we intend to resize our footprint in the UK during the course of 2026. The investment funds and mandates of Bellevue Asset Management Deutschland have been managed by the multi-asset team of Bellevue Asset Management Zurich since July 1, 2025; Bellevue Asset Management Deutschland now functions as a sales and distribution unit only. At the same time, we selectively invested in our asset management and sales expertise.

The upturn in the healthcare sector during the final quarter led to an approximately 10% increase in assets under management in the second half of the year. However, in the year-on-year comparison, this growth was more than offset by the weak performance of the healthcare sector, money outflows and the 12.6% depreciation of the US dollar against the Swiss franc.

Assets under management amounted to CHF 5.3 bn at the end of 2025, which represents a decline of about CHF 500 mn or 9% compared to the end of 2024. As more than 75% of Bellevue’s assets are denominated in USD, this resulted in a currency-related reduction of assets under management of approximately CHF 550 mn.

Average assets under management showed a decline of 23% compared to the previous year. This is reflected in the 25% decline in total operating income to CHF 52.6 mn. Operating expenses were reduced by 16% to CHF 49.1 mn thanks to our efficiency-enhancing efforts.  Personnel expenses declined by 15.7%, while operating expenses decreased by 13.1%. After closing the first half with a break-even result of CHF 0.2 mn, Bellevue Group’s net profit for the second half of the year amounted to CHF 1.7 mn, bringing full-year net profit to CHF 1.9 mn.

This result falls short of our long-term value creation ambitions. That said, the stabilization of our operating performance during the second half of the year is a promising development. The organizational adjustments we have made have lowered the cost base and enhanced our organizational focus and resilience. Steady, positive tailwinds in Bellevue’s core investment universe will nevertheless be needed to sustain the upturn in the Group’s business performance.

Strong balance sheet driving financial resilience

Leaner and fitter for future growth

We also streamlined our executive management and personnel structures in 2025. Veit de Maddalena assumed responsibility for the operational management of Bellevue Group as Executive Chairman in June 2025. He is joined on the Group Executive Board by Markus Peter as CEO of Bellevue Asset Management and CFO Stefano Montalbano. COO Fabian Stäbler left the company in January to pursue a new career opportunity. The Board of Directors and the Group Executive Board thank him for his services.

The healthcare sector is at a structural inflection point: improved regulatory frameworks, a broad innovation pipeline, and a continued valuation discount compared to the global equity market continue to offer significant potential. Monetary easing and fiscal stimulus measures are creating additional cyclical catch-up opportunities in Europe, particularly for small- and mid-cap companies. Geopolitical tensions represent a further macroeconomic uncertainty factor, the intensity of which remains difficult to assess.

Bellevue is well positioned to benefit from this environment as an active, specialized asset manager. We are seeing increased client activity and are confident that we can continue to grow assets under management over the medium term.

For Bellevue, however, 2026 will be an important transitional year. Investments in the technological modernization of our investment platforms are necessary to secure long-term competitiveness. Bellevue has a solid balance sheet structure to finance this transformation phase independently and is convinced that the measures initiated will lay the foundation for profitable growth in the years to come.

We thank our employees for their hard work and dedication during a very challenging period for the company. We thank our clients for their loyalty and you, our valued shareholders, for your enduring trust. As we look to the future, we are confident of Bellevue’s ability to generate greater value for its clients and shareholders.

Veit de Maddalena

Executive Chairman

Markus Peter

CEO Bellevue Asset Management