Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for March 2025.
Portfolio Manager Commentary
Emerging market equities delivered negative returns in sterling terms in March but outperformed developed markets, as US stocks pulled back amid growth concerns. However, the asset class retreated at the end of the month after automotive tariffs were announced, increasing uncertainty around reciprocal tariffs. Latin America, and emerging Europe, the Middle East and Africa ended the month in positive territory, while emerging Asia was broadly muted.
The portfolio outperformed the index over the month. Both the long and short book contributed, as did yield enhancement, while the short index position detracted marginally. Among sectors, strong stock picking within materials was offset by the underweight allocation to the utilities and energy sectors. From a country perspective, positioning across Taiwan (underweight) and South Africa (overweight) contributed while stock picking within India and Kazakhstan was weak. Top contributors were gold miners Pan African Resources, Endeavour Mining, Anglogold Ashanti and Buenaventura, benefiting from the rally in the gold price. Kazakhstan’s ecommerce and payments platform Kaspi declined on local currency weakness and concerns about the impact of higher interest rates. Vietnamese IT services firm FPT was weak amid concerns around higher tariffs.
The Company’s NAV rose 5.2% during the 12-month period ending March 2025, underperforming its reference index which rose by 5.8%. The Company’s share price rose 10.0% 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.
