Fidelity Emerging Markets up 37% YTD as China and India drive gains

Fidelity

Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for May 2026.

Portfolio Manager Commentary

Emerging market equities extended their gains in May, outperforming developed markets. Investor confidence was supported by continued optimism around AI-related growth opportunities and sustained capital expenditure by large technology companies. 

The portfolio delivered positive returns and outperformed the index over the month. The short book and short index positions contributed positively, while the long book was a notable headwind. At the country level, exposure to mainland China and India contributed most to performance, while the overweight position in Brazil detracted. At the sector level, strong stock picking within industrials proved beneficial, whereas stock picking in information technology and financials detracted. At the stock level, gains were led by Korean equities, supported by positive earnings revisions driven by the AI-led memory cycle and continued investor optimism. In particular, positions in SK Square and Samsung C&T were key contributors, benefiting from their exposure to memory producers SK Hynix and Samsung Electronics respectively, alongside robust pricing power and persistent supply tightness across memory markets. Conversely, Hong Kong-based broker Futu Holdings declined, as quarterly earnings fell short of expectations due to lower commission income. 

The Company’s NAV increased by 95.9% over the 12-month period to May 2026, outperforming its reference index, which rose by 54.4% in GBP terms. The Company’s share price increased by 102.9% 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.

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