Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for May 2024.
Portfolio Manager Commentary
Emerging markets ended broadly flat in May and underperformed developed markets. The month was one of two halves, with markets rallying initially but pulling back over the latter part of the period. China’s stimulus measures, the strong performance of technology stocks and optimism that the US Federal Reserve (Fed) would cut interest rates this year supported emerging market equities. Sentiment, however, weakened in the second half of the month after US Treasury yields rose following a weak US bond sale and indications that the US Fed would hold rates steady until there are clearer signs that inflation is returning to target levels.
The portfolio underperformed the index over the month. At a sector level, stock picking across consumer staples and consumer discretionary sectors adversely impacted returns. Within consumer discretionary, Samsonite International detracted given headwinds from more cautious consumer spending in discretionary products, in both Europe and the US. The underweight position in Pinduoduo (PDD) also held back gains.