Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for June 2026.
Portfolio Manager Commentary
Emerging market equities declined in June, underperforming developed markets. Technology stocks remained a key driver of market sentiment, although concerns over elevated valuations contributed to market volatility and weighed on overall returns.
The portfolio delivered positive returns and outperformed the index in June. The long and short books were a notable source of strength while short index positions detracted. At the country level, robust stock selection in South Korea and mainland China contributed most to returns, while stock selection in Taiwan detracted. At the sector level, stock picking in the information technology and industrials sectors proved rewarding, while exposure to the materials sector detracted from performance. At the stock level, SK Square (the holding company for memory producer SK Hynix, in which we also hold a position) advanced following strong performance at SK Hynix on expectations of a sustained AI-driven memory upcycle. Semiconductor equipment manufacturer AMEC added value as the company revised upwards its order growth guidance amid an acceleration in the wafer fabrication equipment cycle. Conversely, electronic connector and CPU socket manufacturer Lotes fell as near-term margin pressures weighed on the stock.
The Company’s NAV rose by 92.3% during the 12-month period ended June 2026, outperforming its reference index which rose by 48.2% in GBP terms. The Company’s share price rose 99.3% 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.
