Bellevue Asia Pacific Healthcare

Asian stock markets posted a mixed performance in October, with the Nikkei 225 climbing 11.8% and the CSI 300 slightly positive at +0.2%. The Hang Seng Index was down 3.4%, and Australia’s benchmark S&P/ASX 200 declined by 0.8%. Overall, Asia-Pacific equities ended the month higher, gaining 3.6%.

The Asia-Pacific healthcare sector (-1.7%) trailed the broader regional equity market. While the favorable Pfizer deal eased concerns over the most-favored-nation (MFN) pricing model in the US, Asian pharmaceutical companies benefited less than their US and European peers. Sentiment weakened further after the US Senate approved an amendment to the National Defense Authorization Act for FY 2026 on October 9 that included its version of the Biosecure Act, though no specific companies were named. The Bellevue Asia Pacific Healthcare Fund (-3.2%) underperformed its benchmark (-2.4%).

Samsung Biologics (+20.3%), Hoya (+17.5%), Daiichi (+6.1%), Chugai (+4.8%), and Otsuka (+2.2%) were among the top contributors to the fund’s absolute performance. Samsung Biologics had another strong month after confirming that its fourth plant has been operational since Q2 2025 and will begin contributing to revenue in Q3. Hoya delivered strong quarterly earnings driven by its innovative information technology business and secured Toshiba as a customer for its glass substrates for HDDs. At the European Society for Medical Oncology (ESMO) meeting, Daiichi announced positive topline results from its phase 3 TROPION-Breast02 trial evaluating Datroway in patients with metastatic triple-negative breast cancer who were ineligible for immunotherapy. Otsuka posted strong results that exceeded investor expectations.

Akeso (-19.6%), Sino Biopharm (-13.0%), WuXi Biologics (-11.6%), CSL (-11.0%), and Takeda (-7.7%) were the largest detractors from the fund’s absolute performance. Akeso’s phase 3 China HARMONi-6 data was positive, with ivonescimab (AK112) showing a strong progression-free survival (PFS) benefit at the high end of expectations, but the company amended the HARMONi-3 trial protocol. Shares of Sino Biopharm fell amid a slowdown in China’s biotech out-licensing activity, though the company remains in talks to out-license several key drugs. WuXi Biologics continues to show strong fundamentals, but political risk related to the Biosecure Act, which was passed by the US Senate as part of the defense bill on October 9 and has yet to be reconciled with the House, continues to drive short-term share price volatility. CSL lowered its FY 2026 revenue guidance to 2%–3% growth from 4%–5%, citing lower-than-expected flu vaccination rates since August. In addition, the planned spin-off of its vaccine unit, Seqirus, has been delayed. Takeda reported quarterly results below investor expectations and lowered its guidance for FY 2026.

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.