Bellevue Asia Pacific Healthcare

Asia-Pacific equities rose 13.2% during the month, led by South Korea’s KOSPI, which gained 34.1%, followed by Japan’s Nikkei 225, which advanced 17.9%. Other markets also improved: China’s CSI 300 rose 9.2%, Australia’s S&P/ASX 200 gained 6.6% and Hong Kong’s Hang Seng Index added 4.1%.

The Asia-Pacific healthcare sector was broadly flat in April, underperforming the broader market as investors shifted toward higher-risk sectors. While the situation between the US and Iran remains uncertain, positive signals – including a cease-fire and openness to negotiations – helped lift market sentiment. The Bellevue Asia Pacific Healthcare Fund declined 0.4%, slightly underperforming its benchmark.

Wuxi Apptec (+15.8%), Hoya (+11.3%), Innovent (+6.1%), Otsuka (+5.1%) and Celltrion (+4.4%) were among the top contributors to the fund’s absolute performance. Wuxi Apptec delivered a strong beat in its Q1 2026 results, supported by high-quality growth and margin expansion. A potential full-year guidance upgrade is expected next quarter. Hoya maintained strong momentum, underpinned by healthy fundamentals and a beat in its Q4 2025 results. Innovent also posted a strong Q1 results 2025, with product sales growing by more than 50% yoy, keeping the company on track to meet its 2027 target. Otsuka reported successful Q1 results, with Voyxact, a key kidney drug, generating more than twice the expected sales. Important clinical data for the drug is also expected to be presented at upcoming conferences, further boosting investor confidence. Celltrion moved higher as management became more conservative on guidance, increasing the potential for upside in upcoming results.

Cochlear (-42.0%), Astellas (-10.1%), CSL (-7.8%), Takeda (-5.5%) and Chugai (-4.3%) were the largest detractors from the fund’s absolute performance. Cochlear declined sharply as growth in its US business slowed, despite the launch of Nexa, the company’s first new cochlear hearing implant in 15 years. In response, management substantially lowered its 2026 guidance. Astellas, which performed well last year, came under pressure as investors took profits. In addition, while Q4 2025 results exceeded estimates, the beat was driven primarily by royalty income rather than strategic brands. CSL fell after the US military scrapped its annual flu-shot mandate. Takeda was weaker despite the absence of a specific company event, as investors locked in gains after the stock’s previous advance. Chugai dropped sharply in a single day after the early launch data for orforglipron, an oral obesity drug, failed to clear the high bar set by competitors. However, given the early stage of development, more time is needed to assess the implications.

All performance data in USD/B shares.

Asia is the world’s most dynamic growth region, home to more than half of the global population. By 2050, Asian emerging markets are projected to account for over 50% of global GDP. As household incomes rise, economic growth in many Asian countries is expected to shift from manufacturing toward services. A growing middle class is driving stronger demand for modern medicine, with healthcare increasingly ranking as a top priority. Billions are being invested in infrastructure, technology, and research to modernize healthcare systems across emerging markets, expanding access to quality care. At the same time, rapid population aging is further boosting 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.

Japan, often referred to as «the world’s demographic laboratory,» has been a champion of cutting-edge innovation for decades. The country holds technology leadership in fields ranging from therapeutic antibody development and immunotherapy to robotics, digitalization, diagnostics, and medical imaging systems.

The fund provides defensive exposure to Asian emerging markets while offering attractive opportunities in the region’s technology leaders. Its investments span the entire healthcare value chain, from generic drug manufacturers and biotechnology firms to medical device makers and digital health specialists.