Fidelity Emerging Markets January Factsheet, Financial stocks gain

Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for January 2024.

Portfolio Manager Commentary

Emerging market equities delivered negative absolute returns and underperformed developed markets in January. Sentiment was driven primarily by the US Federal Reserve and China. Markets declined on indications that the US Fed may keep interest rates higher for longer, while easier monetary policies in China failed to support markets. All regions posted negative returns, led by emerging Asia, followed by Latin America and emerging Europe, the Middle East and Africa (EMEA).

The portfolio outperformed the index in a falling market over the month. Certain stocks held within the financial sector supported performance. The largest contributor within the sector was Russia’s TCS Group, a provider of online retail financial services, which was fully exited in January, as the managers took steps to reduce exposure when liquidity was offered up.

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