Bellevue Emerging Markets Healthcare

Emerging markets gained 14.7% in April, driven by a 34.1% surge in South Korea’s Kospi Index, a 9.2% gain in the CSI 300, a 6.9% rise in India’s Nifty 50, a 4.3% increase in Brazil’s Ibovespa and a 4.1% advance in the Hang Seng.

Emerging-market healthcare stocks gained 4.0% during the month, underperforming the broader equity market as investors rotated into higher-risk sectors. Although the situation between the US and Iran remains uncertain, positive signals – including a ceasefire and openness to negotiations – helped improve market sentiment. The Bellevue Emerging Markets Healthcare Fund gained 3.1%, but underperformed its benchmark during the repoting month.

Wuxi AppTec (+15.8%), Alteogen (+12.1%), Divi’s Laboratories (+8.7%), Innovent (+6.1%) and Celltrion (+4.4%) ranked among the fund’s top contributors. Wuxi AppTec reported a strong set of Q1 2026 results, driven by high-quality growth and margin expansion. A potential full-year guidance upgrade is also expected next quarter. Alteogen’s shares recovered alongside the broader Korean market, after having been heavily punished in January due to a royalty rate that was below expectations. Divi’s Laboratories, an Indian CDMO, continued to show strong momentum, benefiting from GLP-1 drug manufacturing. Strong results from Chinese CDMOs also supported sentiment. Innovent delivered a strong first-quarter beat, with product sales growing by more than 50% year-on-year, leaving the company on track to meet its 2027 target. Celltrion continued to trend higher, as management became more conservative on guidance and the potential for upside in upcoming results strengthened.

Sino Biopharm (-7.9%), CSPC (-7.5%), Mouwasat Hospital (-6.4%), Dr Sulaiman Hospital (-6.1%) and Bangkok Dusit Hospital (-2.4%) were the largest detractors from absolute performance. Sino Biopharm declined after second-half earnings missed expectations, while the absence of updates on business development deals provided no support to the share price. CSPC also came under pressure: despite higher licensing income, its underlying business operations remained weak, weighing on the share price. Mouwasat Hospital reported mixed first-quarter results, with revenue in line with expectations but margins falling short due to the opening of a new hospital. Dr Sulaiman Hospital’s shares dropped back to pre-US-Iran conflict levels ahead of its results release, largely reflecting profit-taking and investor caution going into the announcement. Bangkok Dusit Hospital was affected by the situation in the Middle East, as a meaningful share of its patients come from the region.

All performance data in USD/B shares.

Emerging markets are home to some of the world’s most dynamic growth economies and account for more than half of the global population. By 2050, Asian emerging economies are expected to generate over 50% of global economic output. As incomes rise, many of these economies are shifting from industry-led growth toward service-driven models. A growing middle class is fueling demand for modern medicine, as health becomes an increasingly important priority. Significant investments in infrastructure, technology, and research are accelerating the modernization of healthcare systems, broadening access to higher-quality care. At the same time, demographic shifts are adding to demand. In 25 years’ time, China alone is expected to have nearly 400 million people over the age of 65, creating a significant need for advanced healthcare services and medicines.

Beyond Asia, attractive investment opportunities are also emerging in Brazil’s rapidly expanding private healthcare market. As the public healthcare system continues to struggle with quality and long waiting times, many affluent Brazilians are increasingly turning to private providers for better services. One notable example of beneficiaries of this trend can be found in hospital chains, which are building vertically integrated ecosystems to capture sustainable long-term growth.