Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for April 2024.
Portfolio Manager Commentary
Despite a volatile period for Emerging Markets, the region outperformed developed markets. Investors remained concerned over persistent US inflation following higher than-expected US Consumer Price Index data in March. This raised worries that the US Federal Reserve may keep interest rates elevated for a longer period. However, as the month progressed performance improved, bolstered by upbeat macroeconomic data and rising commodity prices. The portfolio outperformed the index over the month. At a sector level, performance was driven by strong stock picking in the materials and industrials sectors. Within materials, tin producer Alphamin Resources and copper name Grupo Mexico traded higher driven by an upswing in tin and copper prices. Among industrials, airport operator Tav (Turkey) added value supported by robust passenger traffic outlook.
Meanwhile, stock selection in information technology and financials detracted. In financials, Kazakhstan’s e-commerce and payments platform Kaspi was caught in profit taking after it delivered strong earnings while Brazil’s digital challenger bank Nu Holding traded lower with the wider Brazilian market. IT names lagged as the market rotated away from growth names as well as a moderating demand outlook.
The Company’s NAV rose 16.7% during the 12-month period ended April 2024, outperforming its reference index which rose by 10.3%. The Company’s share price rose 21.3% 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.
