Upsides prevail in emerging markets as multiple headwinds show signs of abating. We believe the global valuation collapse has opened up tremendous opportunities in operationally strong companies.
The VanEck Emerging Markets Fund (the “Fund”) returned -8.84% during the third quarter of 2022, outperforming the Fund’s benchmark in a difficult environment for markets generally. This was principally driven by stock selection. Small improvements at the margin will really set the stage for better performance from emerging markets (“EM”), and in particular, the hard-hit growth stocks there. Bad news always feels existential in bear markets, but we are very encouraged by the operational performance of our investee companies.
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.