Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for January 2026.
Portfolio Manager Commentary
Emerging market equities rose sharply in January, significantly outperforming developed markets. Market sentiment was supported by sustained confidence in AI-related demand, continued weakness in the US dollar, and overall strength in precious and industrial metals.
The portfolio delivered positive returns and outperformed the index in January. The long book was a notable source of strength, while the short book and yield enhancement positions marginally detracted. At a country level, stock selection, as well as the overweight exposure to Brazil proved rewarding, as did the company’s positioning in India and Peru. At a sector level, robust stock picking within the materials and financials sectors supported performance, while stock selection in the IT and consumer discretionary sectors was a drag on performance. At a stock level, mining conglomerates Aura Minerals and Buenaventura continued to benefit from rallying gold and copper prices during the month. The underweight exposure to internet company Tencent contributed to returns, as the stock fell on concerns around weaker-than-expected growth in China’s advertising market. Consequently, the position in South African holding company Naspers (which holds a large stake in China’s Tencent) detracted the most from returns.
The Company’s NAV rose by 59.6% during the 12-month period ended January 2026, outperforming its reference index which rose by 29.3%. The Company’s share price rose 71.2% 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.
