Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for October 2025.
Portfolio Manager Commentary
Emerging markets gained in October and significantly outperformed developed markets. This was mainly driven by enthusiasm around AI with tech-heavy markets Taiwan and Korea the best performers.
The portfolio delivered positive returns but underperformed the index in October. Both the long and short books were a source of weakness, while the short index positions and yield enhancement marginally contributed. At a country level, the company’s positioning as well as stock picking within South Korea and South Africa detracted the most from returns. By contrast, the underweight stance in mainland China as well as stock picking in Taiwan proved rewarding. At a sector level, stock picking in the materials and industrials sectors proved to be a headwind, while the underweight stance in communication services contributed to returns. At a stock level, the short position in a manufacturer of electronic and battery materials detracted the most from returns. The underweight exposure to Chinese internet company Tencent contributed to relative returns, as the stock pulled back with the broader market. Consequently, the position in holding company Naspers, which owns a large stake in China’s Tencent, was a notable detractor to performance.
The Company’s NAV rose by 35.0% during the 12-month period ended October 2025, outperforming its reference index which rose by 25.2% in GBP terms. The Company’s share price rose 44.3% 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.
