Sentiment can change quickly in the investment world and nowhere is this more apparent than in emerging markets. Hit hard during the pandemic recovery due to China’s zero-COIVD policy, the emerging market giant’s crackdown on its own tech firms and the strengthening US dollar, the MSCI Emerging Market index returned -22.6% versus 3.7% for the MSCI World index in the two years to the end of 2022.
Now however, many of the headwinds facing emerging markets have turned into tailwinds and investors have been quick to jump on the opportunities offered by China’s re-opening, its softening stance on its technology sector and the depreciating US dollar.
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.
