Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for May 2025.
Portfolio Manager Commentary
Emerging markets (EMs) delivered positive returns but underperformed developed markets in May. The gains were primarily supported by easing trade tensions. However, by the end of the month trade-related uncertainty re-emerged as legal complexities surrounding tariff implementation surfaced. Meanwhile, renewed investor focus on artificial intelligence (AI) was a significant driver of market performance.
The portfolio outperformed the index over the month. The long book was a notable source of strength while yield enhancement also contributed to performance. Strong stock picking across the materials and consumer discretionary sectors supported performance. This was partially offset by the overweight position in these sectors. Stock picking in financials was a drag on relative returns. From a country perspective, China, Greece, and Taiwan were the top contributors while stock picking in Kazakhstan and the US was weak. Taiwanese copper-clad laminate producer Elite Material rallied after it beat expectations on revenue and margins, which led to robust revenue growth this year. Greek bank Piraeus Financial delivered earnings above expectations supported by higher fees and loan growth. Kazakhstan’s ecommerce and payments platform Kaspi declined due to local currency weakness and higher interest rates.
The Company’s NAV rose 11.3% during the 12-month period ended May 2025, outperforming its reference index which rose by 6.7%. The Company’s share price rose 9.9% over the same period.
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.
