Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for June 2024.
Portfolio Manager Commentary
Emerging markets delivered positive returns in June and outperformed their developed markets peers. Markets were supported by artificial intelligence (AI) momentum and postelection strength in India and South Africa. The US Federal Reserve continued to act as a key determinant of market direction, with markets currently pricing in one interest rate cut before the end of the year.
The portfolio outperformed the index over the month. At a sector level, stock picking in utilities and information technology (IT) contributed to performance. Within utilities, Alkhorayef Water & Power Technology added value due to strength in the Gulf Cooperation Council region. A short position in an Asian electric utility company also enhanced gains. Within IT, shares in Taiwan Semiconductor Manufacturing Co. gained amid strong artificial intelligence momentum.
Meanwhile, holdings in industrials and the Company’s overweight positioning in consumer discretionary held back gains. Among industrials, Mexican airport operator Grupo Aeroportuario Del Pacifico declined with the broader market following the election result. In consumer discretionary, South African internet company Naspers traded lower despite reporting in line quarterly earnings driven by profitability in the e-commerce segment.
The Company’s NAV rose by 18.6% during the 12-month period ended June 2024, outperforming its reference index which rose by 13.2%. The Company’s share price rose 22.6% 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.
