Bellevue Asia Pacific Healthcare

Overall, Asia-Pacific equities advanced 7.6% for the month, led by Japan’s Nikkei 225, which rose 7.2%, followed by gains of 6.5% in Hong Kong’s Hang Seng Index and 6.4% in Australia’s S&P/ASX 200, while China’s CSI 300 lagged with a 2.3% increase.

The Asia-Pacific healthcare sector rose 2.3% in January, underperforming the broader equity market, as political risk linked to the proposed BioSecure Act between the US and China continued to weigh on sentiment while investors awaited an updated list of affected companies. The list was not released as expected, easing near-term pressure. The Bellevue Asia Pacific Healthcare Fund gained 1.8%, slightly underperforming its benchmark.

Celltrion (+14.6%), Hoya (+10.6%), CSL (+9.8%), Takeda (+9.7%) and Chugai (+8.1%) were among the top contributors to the fund’s absolute performance. Celltrion pre-released Q4 results, delivering a solid earnings beat driven by the continued growth of its portfolio of newer products. Hoya rallied after customers such as Seagate and ASML confirmed healthy demand, while CSL gained as sentiment in the Australian market improved and investors grew more confident about a recovery. Takeda advanced on an operating profit beat and an upward revision to its full-year guidance, and Chugai benefited from strong results in key products and optimism around the upcoming launch of an oral obesity drug.

Daiichi Sankyo (-14.3%), Terumo (-10.0%), Alteogen (-9.5%), M3 (-8.5%) and Eisai (-6.4%) were the largest detractors from the fund’s absolute performance. Daiichi Sankyo came under pressure after management flagged a profit decline in the first half of its next medium-term plan for 2026 to 2030, with detailed guidance due in April. At the J.P. Morgan Healthcare Conference, Terumo said sales growth at its newly acquired OrganOx unit is expected to be around 60% in 2025, slightly below the prior 70% forecast. Alteogen fell after a smaller-than-expected deal with GSK and lower-than-expected royalties from Merck. M3 declined on concerns that Anthropic’s enhanced Claude 3.5 Sonnet AI healthcare capabilities could disrupt Japan’s pharmaceutical marketing market, while Eisai fell after a neutral analyst initiation, citing that upside from Leqembi has already been priced in.

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.