Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for August 2025.
Portfolio Manager Commentary
Emerging markets extended their gains in August but underperformed developed markets. US tariffs remained in focus, as new tariffs were imposed on multiple countries, while the pause on China tariffs was extended for another 90 days.
The portfolio delivered positive returns and outperformed the index, which ended in a negative territory. The long book was a notable source of strength, while the short book and short index positions held back gains. At a country level, stock picking in Brazil, Taiwan and China proved rewarding, while stock selection in Nigeria and Indonesia detracted from returns. At a sector level, robust security selection in the financials and industrials sectors, as well as the overweight exposure to materials proved rewarding, while the underweight stance in communication services and stock picking in consumer staples held back gains. At a stock level, gold mining conglomerates Pan African Resources, Anglogold Ashanti and Endeavour Mining advanced on higher gold prices. Shares in Nu Holdings rebounded as impressive loan growth and stronger net interest margins buoyed performance. In contrast, the Trust’s underweight exposure to Tencent detracted as it reported robust revenues driven by strong performance across all segments.
The Company’s NAV was at 21.9% during the 12-month period ended August 2025, outperforming its reference index which was at 13.6% in British Pound Sterling (GBP) terms. The Company’s share price rose 27.7% 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.