Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for September 2025.
Portfolio Manager Commentary
Emerging markets advanced in September, significantly outperforming developed markets. The Fed cut interest rates for the first time since 2024, buoying EMs, which also rallied on continued weakness in the US dollar year to date, and strength in China.
The portfolio delivered positive returns and outperformed the index. The short book and short index positions were a notable source of strength, while the long book held back gains. At a country level, stock picking in the UK, Canada and South Korea proved rewarding, while stock selection in China / Hong Kong (and the underweight exposure to Mainland China) detracted from returns, alongside stock picking in Kazakhstan. At a sector level, security selection as well as the overweight stance in materials and stock picking in industrials contributed to performance, while stock picking in consumer discretionary and the overweight exposure to financials were headwinds. At a stock level, gold mining conglomerates Pan African Resources, Endeavour Mining, Buenaventura, and Anglogold Ashanti benefitted from the continued strength in the gold prices. By contrast, the Company’s lack of exposure to Alibaba detracted, as the stock rallied following the announcement of plans to expand its artificial intelligence and cloud capabilities.
The Company’s NAV rose by 34.3% during the 12-month period ended September 2025, outperforming its reference index which rose by 16.9% in GBP terms. The Company’s share price rose 40.3% 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.
