Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for June 2025.
Portfolio Manager Commentary
The emerging markets (EM) delivered positive returns and outperformed developed markets over June. Following a period of risk aversion in mid-June due to geopolitical tensions in the Middle East, the emerging markets stabilised after a ceasefire was brokered. Meanwhile, the US and China reached an agreement on a tariff framework, although a formal deal has yet to be reached.
The portfolio outperformed the index over the month. The short book was a notable contributor to performance while both the long book and short index detracted. Stock picking within consumer discretionary, IT, and consumer services sectors contributed to performance. From a country perspective, security selection in Taiwan was the leading contributor, while the underweight stance in South Korea and stock picking in Canada was weak. Taiwan manufacturer of testing equipment Chroma ATE rallied amid optimism surrounding higher potential revenues. Copper clad laminate producer Elite Material beat expectations on revenue and margins earlier in May – contributed to robust revenue growth this year; also driven by resilient demand for the ASIC products. Conversely, online travel business Trip.com continued to fall given concerns around JD competition and the second half of the year 2025 outbound weakness.
The Company’s NAV was at 11.8% during the 12-month period ended June 2025, outperforming its reference index which was at 6.3%. The Company’s share price rose 14.0% 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.
