A rally is building in emerging market equities that few global investors are positioned for.
For the first time since 2004, the MSCI Emerging Markets Index is on track for nine consecutive months of gains. That run alone would be notable. But what makes it more compelling is where the strength is coming from, a concentrated push in Asian technology names, particularly Chinese and Taiwanese heavyweights, which are pulling capital back into a part of the world that many had written off.
In a year dominated by U.S. large caps and rising interest rate anxiety, the relative silence around this move is part of the opportunity. Tencent, Alibaba, and Taiwan Semiconductor have quietly powered through global uncertainty, drawing in foreign flows while most investors remain preoccupied with developed market risk. As of the end of September, the EM index has risen nearly 7% this month alone.
Fidelity Emerging Markets Limited (LON:FEML) is an investment trust that aims to achieve long-term capital growth from an actively managed portfolio made up primarily of securities and financial instruments providing exposure to emerging markets companies, both listed and unlisted.
