Fidelity Emerging Markets Limited (LON:FEML) published its monthly factsheet for August 2023.
Portfolio Manager Commentary
Emerging markets declined in August amid global risk-off sentiment as benign data from the US economy raised concerns that the US Fed will keep interest rates high for longer. Markets responded to weak economic data from China and weighed up ongoing challenges facing the country’s financial and property sectors, although authorities did act to bolster the economy and support market sentiment. Interest rates were reduced, as were minimum down payments and mortgage rates to support the residential property sector. In this environment, all regions posted negative returns. Latin America was worst performer, followed by Emerging Asia and Emerging Europe, Middle East and Africa (EMEA).
The portfolio outperformed the index over the month. Holdings in the financial sector were amongst the key contributors including UK listed TBC Bank which operates in Georgia. Within consumer discretionary, travel related names gained momentum. Indian online travel agency MakeMyTrip.com delivered robust earnings results earlier in the month. The company demonstrated strong performance over the last few quarters and has continued to gain market share despite low marketing spend, which exemplifies its strong brand positioning and low competitive intensity.
The Trust’s NAV declined -3.2% during the 12-month period ended 31 August 2023, outperforming its reference index which also declined by -7.0%.
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.
