Fidelity Emerging Markets real estate and financials sectors aide outpeformance

Fidelity

Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for Januarty 2025.

Portfolio Manager Commentary 

Emerging market equities delivered positive absolute returns in January but underperformed developed markets. All regions ended in positive territory led by Latin America, followed by Emerging Europe, the Middle East and Africa, and emerging Asia.  

The portfolio outperformed the index over the month. Among sectors, stock picking within the financials and real estate sectors added value, offset by that within consumer discretionary. From a country perspective, the Trust’s Brazilian and Chinese holdings proved rewarding, while stock selection across India and South Africa pared gains. Brazilian financials, including Inter & Co (the holding company for super app Banco Inter), digital challenger bank Nu Bank and financial services firm BTG Pactual saw a sharp reversal from 2024, along with the upswing in the country’s capital market in January. Despite reporting upbeat quarterly results, India’s travel agency MakeMyTrip, and banks HDFC and ICICI were weak in-line with the broader market amid a depreciating rupee and domestic growth concerns. South Africa’s Naspers declined as its underlying asset Tencent’s share price came under pressure. Cement company PPC was another source of weakness over the month as the broader market pulled back. 

 The Company’s NAV rose 17.8% during the 12-month period ending January 2025, outperforming its reference index which rose by 17.6%. The Company’s share price rose 18.7% over the same period.

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