Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for September 2026.
Portfolio Manager Commentary
Emerging market equities edged lower in September but outperformed developed markets. Investor sentiment was shaped by a challenging global backdrop, as the US Federal Reserve raised interest rates and expectations for US monetary policy shifted, pushing US bond yields and the dollar higher.
Over the month the portfolio delivered negative returns and underperformed the index. The long book was the main source of weakness, while the short book and yield enhancement positions contributed positively. At the country level, stock selection in Canada (via mining exposure), and mainland China detracted from performance, while stock selection in South Korea made the strongest contribution. At the sector level, stock selection in industrials and financials detracted, while the portfolio’s overweight exposure to technology added value. At the stock level, ABF substrate supplier AT&S rose on stronger expectations for AI-related substrate demand following its expanded partnership with Marvell. SK Square, the holding company of SK Hynix, rallied amid continued strong AI-driven demand for high-bandwidth memory. Conversely, battery maker CATL declined amid rising trade restrictions, slowing earnings momentum and concerns over weaker battery demand in 2027.
The Company’s NAV rose by 57.5% over the 12 months to September 2026, outperforming its reference index, which rose by 31.0% in GBP terms. The Company’s share price rose by 58.2% 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.
