Bellevue Asia Pacific Healthcare

Asia-Pacific equities declined by 13.0% during the month, led by Korea KOSPI, which declined 22.9%, followed by Japan’s Nikkei 225, which declined 14.3%. Australia’s S&P/ASX 200 declined 9.9%, Hong Kongs’s Hang Seng declined 6.9% and China’s CSI 300 declined 6.0%.

The Asia-Pacific healthcare sector declined 9.0% in March, slightly better than the broader market as healthcare is a defensive sector. The continuous volatility from US-Iran conflict has most severe impact on Asia, namely Korea, Japan and China, where oil supply is highly dependent on the opening of the Strait of Hormuz. The Bellevue Asia Pacific Healthcare Fund declined 8.9% and slightly outperformed its benchmark.

Akeso (+21.5%), Kelun Biotech (+18.5%), 3SBio (+2.9%), Hansoh (+1.2%), and Otsuka (+0.9%) were among the top contributors to the fund’s absolute performance. Akeso’s share rallied because management confirmed sharing of key Overall Survival (OS) data from two trials (HARMONi-6 and HARMONi-2) with ivonescimab in lung cancer in the next few months at undisclosed academic conferences. Kelun Biotech has multiple stock-moving catalysts within this year. In particular the readout and potential filing of Sac-TMT, the lung cancer asset Kelun is working with Merck, has become increasingly important. 3SBio Q4 2025 results were below expectations, but focus was on pipeline progress and milestone payment, which management expectsfrom the collaboration with Pfizer. Hansoh reported a strong year-end performance, and management remains confident in the execution of high-quality business development activities throughout the year. Otsuka’s share increased as a competitor data was weakter than expected, further solidifying Otsuka ‘s leading position with Voyxact in immunoglobulin A nephropathy.

Celltrion (-21.0%), Chugai (-19.1%), Wuxi Biologics (-18.1%), Daiichi (-10.1%), and Hoya (-7.8%) were the largest detractors from the fund’s absolute performance. Celltrion was largely impacted by the US-Iran conflict because South Korea is highly dependent on oil imports from the Strait of Hormuz. While the company announced capacity expansion during the month, they also provided operating margin guidance below expectations. Chugai has a setback on a pipeline asset – GYM329 for neuromuscular diseases was discontinued for further development, although its development for obesity will continue. Wuxi Biologics delivered strong results, but cautious guide into next year was negative. Daiichi has postponed their presentation of the medium-term plan from April 8 to May 19, which created uncertainty among investors. Hoya was also negatively impacted by the US-Iran conflict, as Japan is another country that is highly dependent on oil from the Strait of Hormuz.

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.