Bellevue Asia Pacific Healthcare

Asian stock markets posted broad gains in September, with the Nikkei 225 climbing 5.2%, the Hang Seng Index up 7.8%, and the CSI 300 advancing 3.5%. Australia’s benchmark S&P/ASX 200 also rose slightly by 0.5%. Overall, Asia-Pacific equities ended the month higher, gaining 4.7%.

The Asia-Pacific healthcare sector (+0.5%) underperformed the broader Asia-Pacific equity market. Sentiment was weighed down by growing concerns over the most-favored-nation (MFN) pricing model in the US and reports of a draft executive order from the Trump Administration that would impose significant restrictions and new oversight on drug licensing and development deals involving Chinese biopharma companies. The Bellevue Asia Pacific Healthcare Fund (+0.4%) performed in line with its benchmark.

WuXi XDC (+38.6%), WuXi Biologics (+23.6%), BeOne Medicines (+11.6%), Hengrui (+8.2%), and Hoya (+5.8%) were among the top contributors to the fund’s absolute performance. WuXi XDC and WuXi Biologics drew investor interest on the back of a positive H2 growth outlook. In addition, amid concerns over MFN rules and Chinese out-licensing, contract development and manufacturing organizations such as the WuXi companies were seen as safe havens. BeOne, a high-quality Chinese biotech firm that generates most of its revenue in the US, regained investor favor under the current geopolitical backdrop. Hengrui advanced after out-licensing ex-China rights for an innovative asset to Braveheart Bio in a deal valued at more than USD 1 bn. Hoya rebounded in step with the broader Japanese market.

Akeso (-9.2%), Terumo (-8.2%), CSPC Pharmaceutical (-6.8%), Daiichi Sankyo (-5.5%), and CSL (-4.8%) were the largest detractors from the fund’s absolute performance. Akeso fell after releasing mixed data on its flagship lung cancer therapy AK112, fueling concerns over whether its US partner, Summit, has the resources to run global clinical trials. Terumo extended its decline following the unexpected acquisition of UK-based transplant company OrganOx, as investors worried about profitability dilution and opportunity costs. CSPC slid amid draft rules on out-licensing, which could complicate pending deals. Daiichi Sankyo weakened on the back of rotation into lower-risk names, though investor focus remains on the upcoming AVANZAR readout, a key trial in first-line advanced or metastatic non–small cell lung cancer (NSCLC). CSL continued to lose ground as MFN pricing looms.

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.