Bellevue Asia Pacific Healthcare

Asia-Pacific equities rose 8.5% during the month, led by South Korea’s KOSPI, which gained 26.2%, followed by Japan’s Nikkei 225, which advanced 10.0%. Other markets also improved: China’s CSI 300 rose 2.9% and Australia’s S&P/ASX 200 gained 1.4%. Hong Kong’s Hang Seng Index declined 1.8%.

The Asia-Pacific healthcare sector fell 3.2% in May, lagging the broader market as investors rotated into information technology stocks, particularly hardware and semiconductors benefiting from the artificial intelligence (AI) boom. Sentiment was also weighed down by concerns that US-China biotechnology collaboration and business development could face tighter restrictions. Against this backdrop, the Bellevue Asia Pacific Healthcare Fund declined 3.6%, slightly underperforming its benchmark.

Terumo (+18.3%), Legend (+15.5%), Olympus (+13.6%), Daiichi Sankyo (+2.6%), and BeOne (+1.8%) were among the top contributors to the fund’s absolute performance. Terumo gained after fourth-quarter results and guidance exceeded expectations, supporting confidence in the company’s recovery path. Legend reported strong first-quarter results, driven by continued momentum for its blood cancer therapy Carvykti, while developments in vivo CAR-T therapies further boosted investor interest. Olympus benefited from strong performance in its US endoscopy business, improving confidence in the company’s recovery from earlier challenges. Daiichi Sankyo advanced after releasing its medium-term plan, which incorporated impairments related to contract manufacturing agreements, leading investors to believe key negative developments had been addressed. BeOne reported strong first-quarter results, driven by better-than-expected Brukinsa sales as the drug continued to gain global market share at the expense of competitors.

CSL (-22.2%), Hansoh (-15.3%), Akeso (-13.1%), Hoya (-8.5%), and Takeda (-4.5%) were the largest detractors from the fund’s absolute performance. CSL fell after lowering guidance, raising concerns that growth may take longer to materialize than previously expected. Hansoh led the decline among Chinese biotech companies as geopolitical concerns intensified, with investors increasingly focused on the risk of tighter restrictions on US-China biotechnology collaboration and business development. Akeso also declined on these concerns, while uncertainty surrounding upcoming clinical data presentations at ASCO further weighed on sentiment. Hoya underperformed as investors rotated toward more direct beneficiaries of the AI and semiconductor investment cycle. Takeda weakened after issuing guidance that largely met expectations, prompting some profit-taking following the stock’s recent strength.

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