Bellevue Asia Pacific Healthcare

Asia-Pacific equities fell 1.4% in July, as steep losses in North Asia’s technology-heavy markets, including South Korea’s KOSPI (-16.2%), China’s CSI 300 (-6.9%) and Japan’s Nikkei 225 (-6.2%), outweighed gains elsewhere in the region. Hong Kong’s Hang Seng Index rose 13.5%, Australia’s S&P/ASX 200 gained 4.0% and India’s Nifty 50 advanced 1.5%.

The Asia-Pacific healthcare sector gained 4.2% in July, outperforming the broader market as the rally in information technology stocks lost momentum. Investors grew increasingly concerned about stretched AI-related valuations and the sustainability of capital spending. The Bellevue Asia Pacific Healthcare fund gained 4.0% during the month, slightly underperforming its benchmark.

Celltrion (+15.5%), BeOne Medicines (+13.9%), Samsung Biologics (+13.7%), WuXi Biologics (+12.0%) and Takeda (+9.1%) were the fund’s top contributors to absolute performance during the month. Celltrion delivered a solid second quarter, supported by strong growth in its newer product portfolio, a key driver of the company’s outlook and margin expansion. BeOne Medicines rebounded from its earlier sell-off, helped by positive Phase III trial data and several analyst upgrades that reinforced confidence in its fundamentals. Samsung Biologics’ second-quarter results met expectations, with management guiding for sequential revenue growth and a pickup in orders in the second half. WuXi Biologics rebounded alongside the broader Chinese healthcare sector as investors returned to Chinese biotech stocks. Takeda beat expectations, strengthening confidence in upcoming product launches that are expected to support future growth.

Legend Biotech (-35.8%), PharmaEssentia (-13.4%), Alteogen (-7.6%), Chugai (-6.1%) and Hoya (-3.0%) were the fund’s largest detractors from absolute performance during the month. Legend Biotech shares fell after the company announced its CEO’s resignation, raising near-term uncertainty around strategy and pipeline execution. PharmaEssentia shares were volatile amid broader swings in Taiwan equities caused by the global semiconductor sell-off, despite continued strong revenue growth. Alteogen was similarly caught in the sharp, semiconductor-led sell-off in the Korean market. Chugai gave back its post-earnings gains later in the month. While core operating profit rose sharply and beat expectations, investors remained uncertain about the near-term pace of royalty income from its newly launched oral GLP-1 drug, which is licensed to Eli Lilly. Hoya declined alongside the broader pullback in technology-linked stocks, reflecting its exposure to semiconductor materials in addition to its healthcare business.

All performance data shown in USD, based on B-share class.

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.