Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for April2025.
Portfolio Manager Commentary
Emerging market equities gained in April and outperformed developed markets. After US tariffs were announced in early April, emerging markets pulled back along with global markets, although they experienced some relief after a pause was announced for most countries (other than China). The decline in the US dollar also supported sentiment towards the asset class.
The portfolio outperformed the index over the month. While the long book and the short index position contributed to performance, the short book detracted, as did yield enhancement. Among sectors, strong stock picking across financials, materials, and consumer discretionary was offset by that within industrials. From a country perspective, Brazil was the top contributor while stock picking in Hong Kong was weak. Naspers outperformed the broader market, and also Tencent, in which it holds a large stake. Georgian lender TBC Bank advanced following a restructure of its Uzbek joint venture. Kazakhstan’s ecommerce and payments platform Kaspi declined as the broader market pulled back as lower oil prices put downward pressure on the local currency. A short position in an Asian power and thermal solutions provider also pared gains.
The Company’s NAV rose 2.1% during the 12-month period ended April 2025, underperforming its reference index which rose by 2.2%. The Company’s share price rose 3.1% 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.
