Bellevue Asia Pacific Healthcare

Asia-Pacific equities were broadly flat in September, edging down 0.2%. Japan's Nikkei 225 (+1.2%) and South Korea's KOSPI (+0.3%) posted modest gains, while China's CSI 300 (-5.6%), India's Nifty 50 (-6.0%), Hong Kong's Hang Seng Index (-3.3%) and Australia's S&P/ASX 200 (-2.1%) declined. The broader backdrop was shaped by a sharp rise in US Treasury yields, with the 10-year yield climbing 54 bps to 5.29%, and a stronger US dollar.

The Asia-Pacific healthcare sector declined 0.6% in September, slightly underperforming the broader market. The Bellevue Asia Pacific Healthcare Fund also declined 0.6% during the month, performing in line with its benchmark.

WuXi Biologics (+14.6%), CSL (+5.5%), GenScript (+32.3%), WuXi AppTec (+13.6%) and Takeda (+3.6%) were the fund's top contributors to absolute performance during the month. Chinese CDMO and life science tools names were a notable source of strength, consistent with a strong month for life sciences tools globally. WuXi Biologics and WuXi AppTec rallied with the wider Chinese CDMO sector based on their strong growth and order book in the remaining of the year. CSL continued the gain following their results and share buy-back also helped. GenScript benefited from the broader wave of enthusiasm around AI-driven drug design. The follow-on placement further supported momentum. Takeda will have three new product launches towards year end, and this could signal a recovery from their current portfolio.

Chugai (-8.6%), PharmaEssentia (-13.4%), Alteogen (-16.1%), Sun Pharma (-9.3%) and Terumo (-6.6%) were the fund's largest detractors from absolute performance during the month. Chugai drifted lower through the month. Sentiment was hit further late in September when Roche ended development of emugrobart in obesity. PharmaEssentia gave back part of its strong August gain. This came despite another record month of sales: August revenue of TWD 2.62 billion, up 105% year-on-year. Alteogen remained under pressure, falling broadly in line with a weak Korean biotech sector. Sun Pharma declined amid broad weakness in Indian equities. Terumo continued under pressure because CSL returned their Rika device and investors are unclear of path forward.

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.