The sector was challenged by macro factors throughout 2022 but last year saw it rebound
There are thousands of listed companies in the global emerging markets region. Many of these actively incorporate ESG considerations into their operations. However, it is important to recognise the disparity among ESG data providers, leading to different ESG scores for the same company.
In terms of performance, responsible/sustainable strategies with a growth approach have faced challenges in recent times. They have struggled as the companies they are investing in have been part of the cohort of growth stocks that have been de-rated. Simultaneously, these strategies have avoided sectors such as oil due to ethical exclusions. As a result, this has impacted on their performance, as these areas of the market have generally held up well.
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.
