Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for December 2024.
Portfolio Manager Commentary
Emerging markets equities were broadly flat in December but outperformed developed markets, as the US market pulled back following a period of rapid gains. Emerging Europe, the Middle East, Africa, and emerging Asia equities delivered positive returns, while Latin America equities declined significantly.
The portfolio outperformed the index over the month. At the sector level, stock picking within the information technology, real estate and materials sectors added value, offset by that within financials. From a country perspective, stock selection across India and Taiwan proved rewarding, while the Trust’s Brazilian and China / Hong Kong holdings held back gains. India’s Five Star Business Finance was the top contributor, while Taiwan technology business Elite Material continued to rise after reporting robust results earlier in the quarter supported by higher volumes in AI and consumer electronics. Taiwan’s ASIC design house Alchip also gained on the likelihood it had won a next generation chip contract. Weakness in Brazilian financials including Inter & Co (the holding company for super app Banco Inter), digital challenger bank Nu Bank and financial services firm BTG Pactual persisted, as the market came under pressure from a weakening fiscal backdrop.
