Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for September 2024.
Portfolio Manager Commentary
Emerging markets (EM) rallied in September and outperformed developed markets. Positive sentiment was fuelled by the Fed’s 50-bps rate cut, but more significantly by the stimulus measures announced by China at the end of the month. The PBoC cut rates to bolster the economy and indicated there would be more fiscal support, in addition to funding equity purchases.
The portfolio underperformed the index over the month. At a sector level, stock picking in financials was a drag on performance. Kazakhstan’s ecommerce and payments platform, Kaspi sold off following the publication of a short seller report. Kaspi has issued a rebuttal to these claims, and we are engaging with the company following the publication of the report, supplementing an ongoing process whereby we interact with the company quarterly to understand its business fundamentals, geopolitical and liquidity considerations.
Encouragingly, our Chinese consumer facing names contributed to performance as their share prices rose after the announcement of a meaningful package of stimulus measures. Leading sportwear businesses Anta Sports and Li Ning were among the top contributors to returns.
The Company’s NAV rose 14.7% during the 12-month period ended September 2024, which is in-line with its reference index. The Company’s share price rose 19.0% 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.
