Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for February 2025.
Portfolio Manager Commentary
Emerging market equities delivered marginally positive returns, outperforming developed markets over February. Continued optimism around artificial intelligence (AI) following the release of China’s new AI model and a pullback in the US dollar supported market sentiment.
The portfolio underperformed the index over the month. Stock picking in consumer discretionary and the underweight allocation to communication services pared gains, offset by the underweight exposure to energy as well as selected holdings within healthcare. While Brazilian and Chinese holdings proved unrewarding, stock selection across India and South Africa added value. The Trust’s underweight exposure to Alibaba and Tencent hampered returns. Integration of AI technologies supported these stocks. Alibaba also benefitted from the release of a new AI model as well as expectation of an acceleration in its cloud business. The overweight exposure to South Africa’s Naspers (which holds a large stake in China’s Tencent) offset some of the losses. Georgian bank TBC advanced following strong fourth quarter results and reiterated guidance. Ecommerce and payments platform Kaspi performed well after the release of positive quarterly results. Conversely, digital challenger bank Nu Bank declined as net interest margins fell short of estimates.
The Company’s NAV rose 10.1% during the 12-month period ended February 2025, underperforming its reference index which rose by 10.6%. The Company’s share price rose 12.5% 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.
