Bellevue Asia Pacific Healthcare

Asia-Pacific equities rose 3.2% in August, supported by strong gains in South Korea's KOSPI (+8.9%), Australia's S&P/ASX 200 (+3.7%), Japan's Nikkei 225 (+2.9%) and China's CSI 300 (+1.5%). Hong Kong's Hang Seng Index declined 1.0% and India's Nifty 50 declined 0.8%, though both losses were modest relative to the broader regional gain.

The Asia-Pacific healthcare sector gained 9.0% in August, 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 9.7% during the month, outperforming its benchmark.

GenScript (+87.7%), CSL (+42.2%), PharmaEssentia (+34.2%), WuXi Biologics (+26.1%) and Innovent (+19.8%) were the fund's top contributors to absolute performance during the month. GenScript benefited from the broader wave of enthusiasm around AI-driven drug design following its results, with a strong order backlog further reinforcing earnings upside. CSL posted solid results and guided for immunoglobulin growth to recover to a high-single-digit rate, easing investor concerns about the franchise. PharmaEssentia maintained strong momentum, driven by the continued sales ramp-up of its key product alongside an upcoming indication expansion that is expected to broaden its addressable market. WuXi Biologics delivered strong results on the back of better-than-expected revenue and margin expansion, prompting the company to raise its full-year guidance. Innovent also reported strong results, and more importantly, management reaffirmed its confidence in achieving its 2027 targets while announcing a longer-term 2030 goal that investors viewed positively.

Hengrui (-14.4%), Max Healthcare (-4.8%), Akeso (-4.3%), Cipla (-4.1%) and Lupin (-1.7%) were the fund's largest detractors from absolute performance during the month. Hengrui's results came in weaker than expected, weighed down by slowing momentum in innovative drugs, although the company maintained its full-year guidance. Max Healthcare's results were strong overall, but oncology remained a challenge, as the government's price cap on oncology drugs weighed on margins. Akeso's results were weaker than expected due to softer sales of its two key innovative drugs, though both remain at an early stage of their launch trajectories.. Cipla saw some profit-taking following its results, with the upcoming respiratory launch representing the next potential catalyst. Lupin posted strong results, but management was cautious in its guidance, indicating that growth could moderate amid strong competition.

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.