Fidelity Emerging Markets is targeting companies across developing economies that stand to benefit from rising consumption, technological adoption, infrastructure investment and shifts in global supply chains.
The trust’s approach is built around stock selection rather than broad exposure to emerging markets as a single theme. It looks for companies with strong balance sheets, capable management teams and defensible market positions, while also considering businesses facing structural or cyclical pressure.
Technology is a significant part of the opportunity. China, Korea and Taiwan have developed large technology industries, while emerging markets also play an important role in global semiconductor and artificial intelligence supply chains.
Other opportunities come from financial services, commodities and infrastructure. Greater credit penetration can support banks and other financial businesses, while demand linked to the energy transition can benefit producers of materials such as copper and uranium. Investment in electricity grids and related infrastructure also creates potential opportunities across a range of markets.
Rising incomes and greater digital adoption are changing spending patterns and allowing companies to reach customers more efficiently. In some markets, these trends are supporting businesses that can scale quickly as domestic demand expands.
Smaller and medium-sized businesses can receive less analyst coverage, which may create valuation gaps. Fidelity’s research process is intended to identify these opportunities through company meetings, sector analysis and comparisons with competitors and suppliers.
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.
