Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for March 2024.
Portfolio Manager Commentary
Emerging markets rose in March but underperformed developed markets. The asset class was buoyed by indications that the US Federal Reserve (Fed) was on track to cut interest rates this year, although higher-than-expected US inflation and robust economic data suggested that the pace of cuts may be slower than initially expected. Emerging Asia was the best performer, followed by Latin America, while Emerging Europe, the Middle East and Africa (EMEA) finished the month in marginally negative territory.
The portfolio outperformed the index over the month. The performance of selected financials holdings including Kazakhstan’s e-commerce and payments platform Kaspi and Brazil’s digital challenger bank Nu Holdings positively impacted relative returns. On the contrary, Hong Kong listed insurer AIA Group declined, impacted by poor sentiment towards China. In materials, Grupo Mexico and Teck Resources added value on the back of rising copper prices due to tight supply. Two short positions in metals and mining detracted. A number of Chinese stocks detracted, with dairy business China Mengniu Dairy and online discount retailer Vipshop declining over the month. Although we are cognisant of the more muted backdrop for consumption in China, we continue to think that the fundamentals of these companies remain positive.
The Company’s NAV rose 12.5% during the 12-month period ended March 2024, outperforming its reference index by 6.6%. The Company’s share price rose 14.9% 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.
