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As a global market leader in generics and biosimilars, Sandoz benefits more than average from rising patent expiries. The first annual financial statements as an independent company released in mid-March showed that the high-margin biosimilars business in particular is growing strongly (+15%). The company is looking to expand this division. Total revenue was up 7% in 2023, but the margin fell to 18% due to one-off costs from the spin-off, amongst other things. Financial analysts were originally looking for a target of CHF 40, but the stock price has moved sideways around the CHF 25 level since the IPO on 4 October 2023. Given the forecast revenue growth of 5% and margins that should hit 20%, a price/earnings ratio of 11 is far too low.

The first quarter is already behind us and performance was positive. Artificial intelligence remained a focus of attention and was one of the main drivers of the positive return from financial markets. According to a study published recently, the number of companies mentioning AI in their financial reports has reached a new record: 36%.

At a time when stock market indices all over the world are hitting new highs, the Swiss market is standing out for its remarkable restraint. The DAX, CAC 40, DJII and S&P500 have all been putting in impressive performances and setting new records, but the Swiss equity market is stuck some 10% below its all-time high at the end of 2021. This raises questions, especially as the Swiss franc has appreciated strongly against the dollar and the euro, and as major stocks like Roche and Nestlé show signs of weakness. In our interview with Chief Investment Officer Luca Carrozzo we investigate the reasons behind the poor performance of the Swiss market, discuss the role of the strong franc and consider whether the Swiss National Bank (SNB) needs to cut interest rates to get the equity markets going again. Find out why Swiss securities are out of favour at the moment and what this means for investors.

The Swatch share is at the same price level as in the year 2000, even though the company has more than doubled its turnover and profit during this time. The weak share price can be attributed to the vague corporate strategy, a lack of vision and poor communication with shareholders and financial analysts.

2023 was a challenging year for stock markets. Ultimately it drew to a positive end, but along the way it showed us the increasing importance of good risk management. 2024 too has risks investors should not underestimate. There is no end in sight to the wars in Ukraine and the Middle East, and the tensions in the Far East are also unlikely to ease. On top of that, some countries are facing elections which could have consequences beyond national borders or even for the whole world.

ESG is becoming an increasingly prominent issue for private clients, and for younger ones in particular sustainable investing is essential. Even more attention will be focused on the issue from 1 January 2024, when the mandatory minimum investment standards of the Swiss Bankers Association come into effect.

from the collapse in demand for COVID tests. Even so, it grew 7% in the third quarter and reported double-digit growth rates in the high-margin pharma division for the first time in years. Patent expires on the three big cancer drugs (Avastin, Herceptin and Rituxan) are becoming less significant, as are the COVID tests, and from 2024 onwards Roche will be back on track for double-digit growth.

The Swiss economy stagnated in the second quarter. However, the labour market remained strong, which had a positive impact on private consumption. The data published suggest that the Swiss economy is becoming less resilient. The problems encountered by Germany, Switzerland’s largest trading partner, are becoming increasingly evident. Meanwhile, the weakness of China is weighing on industrial exports. This suggests that the slowdown in global growth appears to have reached Switzerland.

«Let food be thy medicine and medicine be thy food,» proclaimed Hippocrates, founder of western medicine, as long ago as 460 BC. This means just as much now as it did then. The pressing health and social challenges of today include not only obesity and sugar, but also the growing impact of food production on the planet. But it is precisely here that we are experiencing more than just a trend reversal – it is an outright food revolution. This presents attractive investment opportunities.

Conventional wisdom has it that those who rely on yields and wish to sleep soundly buy bonds. This is only partially true, as was demonstrated clearly last year.

On 1 January 2023, Luca Carrozzo became the new Chief Investment Officer of Bank CIC, making him responsible for investment strategy. It’s time to take a look at the markets with him.

The Swiss economy got off to a surprisingly good start to the year, growing by 0.5% quarter on quarter in the first quarter. This was largely driven by domestic demand and capital investment. Annual inflation has been falling steadily in the past few months as a result of energy prices returning to normal, and the situation in the labour market still looks extremely positive.