Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for July 2025.
Portfolio Manager Commentary
Emerging markets delivered positive returns in July, marginally outperforming developed markets. While there was limited tariff noise for most of the month, this was followed by the imposition of reciprocal tariffs towards the end of the period.
The portfolio delivered positive returns but underperformed the index over the month. Both the long and short books were a source of weakness, while short index exposure contributed to returns. Stock picking and the overweight exposure to the financial sector, as well as stock picking within industrials held back gains, while security selection in information technology was positive. At a country level, stock picking and the underweight stance in China held back gains, although this was partly offset by security selection in Hong Kong. Also positive was the security selection in Taiwan and Nigeria. At a stock level, micro-SME lending company Five Star Business declined as quarterly earnings missed expectations, driven by a deterioration in asset quality. The underweight stance in social network company Tencent also held back gains, as the Chinese market rallied over the month. Conversely, copper clad laminate producer Elite Material contributed, as higher profit margins backed by a robust product mix and capacity expansion plans underpinned strong performance.
The Company’s NAV rose 17.6% during the 12-month period ended July 2025, outperforming its reference index which rose 13.7%. The Company’s share price increased 20.5% 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.
