Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for February 2024.
Portfolio Manager Commentary
Emerging markets advanced in February and slightly outperformed developed markets. Performance was driven by Asian economies, and in particular China, which rallied as investors reacted positively to better-than-expected consumption trends during the Lunar New Year. As a result, emerging Asia was the best performer, followed by emerging Europe, the Middle East and Africa, while Latin America marginally declined over the period.
The portfolio underperformed the index over the month. At a sector level, certain holdings in consumer discretionary, industrials and materials detracted from returns while security selection in information technology and financials enhanced gains.
In consumer discretionary, a Latin American e-commerce company Mercado Libre declined after the company announced muted earnings results over the month. Encouragingly, the position in Hong Kong listed luggage maker Samsonite International contributed to performance. Among materials companies, copper miner Grupo Mexico was a source of weakness, which declined with the broader Mexican market. Among the top contributors for the month were the portfolio’s financial holdings, including Brazil’s digital challenger bank Nu Holdings and Kazakhstan’s e-commerce and payments platform Kaspi, which both posted strong earnings results.
The Company’s NAV rose 5.4% during the 12-month period ended February 2024, outperforming its reference index which rose by 4.1%. The Company’s share price rose 8% 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.
