Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for August 2026.
Portfolio Manager Commentary
Emerging market equities recovered in August and outperformed developed markets, supported by strong corporate earnings and growing investor confidence in opportunities linked to artificial intelligence. Oil prices remained volatile as geopolitical tensions in the Middle East and disruption to shipping through the Strait of Hormuz continued to influence markets.
The Company delivered a positive return and outperformed its reference index during the month. The long book was the main contributor to performance, while the short book and short index positions detracted. At the country level, strong stock picking drove returns, particularly in Canada through mining exposure and in Taiwan, while holdings in South Korea and South Africa were less supportive. By sector, materials and technology contributed positively, whereas industrial holdings detracted. At the stock level, gold mining conglomerates including Brazil-focused Aura Minerals and South America-focused Aris Mining benefited from higher gold prices. Gold was supported by weaker US economic data, ongoing central bank purchases and increased demand for gold-backed funds. In contrast, Naspers detracted from performance as concerns over the rising costs of Tencent’s artificial intelligence investments weighed on sentiment.
Over the 12 months to 31 August 2026, the Company’s NAV increased by 73.2%, compared with a 38.8% rise in the reference index in sterling terms. The share price rose by 79.5% 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.
