Fidelity Emerging Markets Limited hits 4.9% annual returns as prospects brighten

Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for December 2023.

Portfolio Manager Commentary

Emerging market equities continued to rally in December but underperformed developed markets. Equities were supported by optimism surrounding potential interest rate cuts in 2024, following dovish signals from the US Federal Reserve and a downward trend in inflation, which supported the prospects of a soft landing. All regions posted positive returns, led by Latin America, followed by emerging Europe, the Middle East and Africa and emerging Asia.

The portfolio marginally underperformed the index over the month. Chinese stocks continued to detract, with dairy business China Mengniu Dairy and sportswear company Li Ning both declining over the month. Although we are cognisant of the more muted backdrop for consumption in China, we continue to think that the fundamentals of these companies remain positive.

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