Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for March 2026.
Portfolio Manager Commentary
Emerging market equities declined in March, as the emergence of the conflict in Iran at the end of February, prompted significant market moves and some de-risking, with higher oil prices and geopolitical uncertainty weighing on sentiment.
The portfolio delivered negative returns and underperformed the index in March. The short book and the short index positions were a notable source of weakness, while the long book contributed. At the country level, the underweight exposure to mainland China, as well as stock picking in China and Canada held back gains, while strong stock picking in Taiwan contributed the most. At a sector level, stock picking as well as the Company’s positioning in the materials sector detracted, while robust stock picking in the information technology sector proved rewarding. At a stock level, Korean equities experienced a significant sell-off in March following the outbreak of the conflict in the Middle East and as investors took profits in recent strong performers. Consequently, the position in Samsung C&T (the holdco for Samsung Electronics) and SK Square (the holdco for memory producer SK Hynix) pared gains. Conversely, leading Chinese battery maker CATL rallied on the back of strong quarterly sales volumes, underpinned by robust demand and pricing power.
The Company’s NAV rose by 58.8% during the 12-month period ended March 2026, outperforming its reference index, which rose by 26.8% in GBP terms. The Company’s share price rose 61.0% 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.
