# Latin America commodities rally benefits Fidelity Emerging Markets investment trust

- Link: https://www.directorstalkinterviews.com/latin-america-commodities-rally-benefits-fidelity-emerging-markets-investment-trust/4121108783
- Published: 2023-03-06T12:13:00+00:00
- Author: Amilia Stone

**[Fidelity Emerging Markets Limited](https://www.directorstalkinterviews.com/company/fidelity-emerging-markets-limited/feml.l)**(
[LON:FEML](https://www.directorstalkinterviews.com/company/fidelity-emerging-markets-limited/feml.l))
monthly factsheet for the period ended 31 January 2023

**Portfolio Manager Commentary**

Emerging markets rallied in January and outperformed most developed markets, with
sentiment buoyed by the economic reopening in China and a weaker US dollar. Commodity-
rich Latin America was the best performer, boosted by a strong rally in industrial
metals, as the end to China’s zero-Covid policy raised expectations that commodity
demand would increase. Chinese markets also continued to perform well due to the
country’s economic reopening. Taiwanese stocks made significant gains, supported
by the strong performance of the technology sector.

A number of Latin American stocks contributed to relative returns. These included
Peru-based copper miner Southern Copper, which fared well in line with copper prices.
Taiwanese and South Korean technology names advanced amid hopes that Chinese consumer
demand would start to recover.

At the sector level, stock picking and our overweight positioning in financials 
proved unfavourable. Indian banks HDFC Bank and ICICI Bank declined despite reporting
robust earnings, hurt by a rotation away from India towards China, and the residual
impact of the Adani Group sell-off. Exposure of the banks held in the portfolio 
to Adani Group is limited and we do not expect a material rotation to China from
India, which we believe benefits from strong structural growth drivers over the 
longer term.

On a rolling 12-month basis, the Company recorded NAV and share price returns of-
15.8% and -16.9% respectively, compared to -4.2% for the index.

[FEML-Jan-Factsheet](https://www.directorstalkinterviews.com/wp-content/uploads/2023/03/FEML-Jan-Factsheet.pdf)
[Download](https://www.directorstalkinterviews.com/wp-content/uploads/2023/03/FEML-Jan-Factsheet.pdf)

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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