Emerging‑market equities have advanced each month from January through October, marking the first uninterrupted 10‑month run in over three decades. The scale of the move has been notable, with the MSCI Emerging Markets Index up around 30 % year‑to‑date.
The softening of the US dollar has played a role, reducing headwinds for emerging‑market assets and boosting relative returns for foreign investors. But the shift goes deeper than currency. The sector composition of the emerging‑market universe has changed significantly. Once dominated by banks, commodity producers and state‑linked entities, the index now includes a growing share of technology, healthcare and consumer firms with export‑driven models and intellectual property advantages. In particular, Asian semiconductor and AI‑adjacent names have begun to act as performance anchors, bringing in flows that might previously have been concentrated in US or developed‑Asia tech allocations.
While developed markets contend with inflation stickiness and restrictive central banks, several emerging economies have been able to ease. Selective stimulus out of China, improving earnings from Korea and Taiwan, and real yield advantages in Latin America have made regional positioning more compelling.
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.
