Fidelity Emerging Markets share price rises 21% over year, May Factsheet

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.  

Stock selection in financials and materials, as well as underweight allocation to health care supported performance. In financials, Kazakhstan’s Kaspi bolstered performance given its dominant market position and rapid growth.   

The Company’s NAV rose 15.6% during the 12-month period ended May 2024, outperforming its reference index which rose by 9.4%. The Company’s share price rose 21.1% over the same period. 

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