Bellevue Asia Pacific Healthcare

Asia-Pacific equities fell 1.1% during the month, weighed down by Hong Kong's Hang Seng Index, which tumbled 8.6%, and South Korea's KOSPI, which lost 2.9%. Elsewhere, markets proved more resilient. Japan's Nikkei 225 gained 3.5%, India's Nifty 50 advanced 2.1%, China's CSI 300 rose 2.0%, while Australia's S&P/ASX 200 slipped 3.2%.

The Asia-Pacific healthcare sector declined 1.2% in June, broadly in line with the broader market, as the rally in information technology stocks lost steam amid growing investor concerns over stretched valuations in artificial intelligence (AI)-related companies. The Bellevue Asia Pacific Healthcare Fund fell 2.1%, underperforming its benchmark.

Pro Medicus (+47.9%), PharmaEssentia (+41.9%), WuXi AppTec (+17.9%), Max Healthcare (+17.4%), and CSL (+14.2%) were the fund's leading contributors during the month. Pro Medicus rallied alongside the broader recovery in software stocks and renewed strength in Australia's healthcare sector. The company also strengthened its growth outlook by securing a seven-year, A$16 million contract with TidalHealth and renewing its agreement with Allegheny Health Network for five years at A$28 million. PharmaEssentia gained after receiving approval for a new indication in Taiwan, while investor sentiment remained constructive on the company's longer-term prospects ahead of a potential US approval. WuXi AppTec rebounded as investors became more comfortable with the geopolitical risks surrounding US-China relations following an extended period of uncertainty. Max Healthcare recovered after a broker conference in India reinforced confidence in the long-term outlook for the country's private hospital sector, prompting investors to view the recent share-price weakness as a buying opportunity. CSL also benefited from the broader recovery in Australian healthcare stocks, while its historically low valuation attracted value-oriented investors.

Akeso (-25.5%), Otsuka (-9.1%), Terumo (-8.9%), Celltrion (-8.4%), and Hoya (-6.2%) were the largest detractors from the fund's absolute performance during the month. Akeso extended its recent decline after clinical data presented at a medical conference fell short of investors' expectations. Otsuka, Terumo, and Hoya underperformed amid broad-based weakness in Japanese healthcare stocks. Otsuka came under additional pressure after reporting clinical data for its kidney disease treatment that disappointed investors. Terumo declined after recalling certain models of its stent-graft system following reports of device malfunctions and patient deaths. Celltrion retreated as investors took profits following the stock's strong gains earlier in the year.

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.