Fidelity Emerging Markets (FEML) is using an active investment strategy to identify opportunities across emerging markets as technology, artificial intelligence and changing industry dynamics influence company prospects.
The investment trust focuses on identifying businesses with growth potential while assessing risks facing companies whose markets or business models may come under pressure. Its approach combines company research, sector analysis and the flexibility to take both long and short positions.
The managers are assessing opportunities across a range of industries, including technology, semiconductors, batteries and metals. They are also considering how developments in artificial intelligence could affect established sectors, with the potential for technological change to create opportunities for some businesses while challenging others.
Portfolio positioning reflects the managers’ views on individual companies and markets rather than relying solely on broad regional allocations. The trust has exposure to selected Asian technology businesses, alongside holdings in other areas linked to industrial and technological demand. At the same time, it maintains a cautious approach towards certain sectors where the managers see potential risks to future earnings.
The investment trust’s structure allows the managers to use derivatives, adjust market exposure and take short positions where they believe company fundamentals are deteriorating. This provides additional flexibility when responding to changing market conditions, although the strategy remains exposed to market volatility and the risks associated with emerging market investments.
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.
