Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for July 2026.
Portfolio Manager Commentary
Emerging market equities declined in July and underperformed developed markets. Technology stocks came under pressure as investors reassessed expectations for AIrelated investment and earnings, leading to increased market volatility.
The portfolio delivered negative returns and underperformed the index during the month. The long book was the main detractor, while the short book and short index positions contributed positively. At the country level, stock picking in mainland China and Taiwan weighed on performance, while stock picking in South Korea added value. At the sector level, exposure to information technology and industrials detracted, while exposure to materials was beneficial. At the stock level, SK Square and Samsung C&T, the holding companies of memory-chip producers SK Hynix and Samsung Electronics, declined as investors reduced exposure to AI and semiconductor-related stocks. Despite this weakness, we believe the long-term investment case remains intact, supported by strong balance sheets and ongoing value creation across their core assets. In contrast, AI server manufacturer Wiwynn contributed positively as analysts raised earnings forecasts. Subsequent results reinforced this view, with the company reporting strong earnings.
Over the 12 months to 31 July 2026, the Company’s NAV rose by 70.0%, outperforming its reference index, which returned 34.2% in sterling terms. The Company’s share price increased by 67.6% 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.
