South Korean and Taiwan technology stocks boost Fidelity Emerging Markets trust

Portfolio Manager Commentary

Emerging markets rose in March and performed broadly in line with most developed markets. At the start of the period, the market struggled with risk-off sentiment as turmoil among developed market banks raised concerns over global financial instability. Sentiment then reversed from mid-March as these concerns began to fade. Emerging market equities were also supported by indications that China was increasing support for the internet sector and carrying out reforms aimed at state-owned enterprises.

The portfolio underperformed the index over the month as select Chinese consumer holdings declined. These include sportswear company Li Ning which released mixed financial results during the month. Whilst China’s reopening provides a tailwind for consumption, mixed results in the short-term do not come as a
surprise to the team. The underweight exposure to internet company Tencent was also a detractor although this was offset partially by our overweight position in Naspers, which owns 28% of Tencent.

A number of Taiwanese and South Korean technology holdings performed well over the month given the growing expectation of demand recovery in China. Investors were focused on the potential bottoming out of the semiconductor down-cycle and recovery later in 2023, which boosted the positions in Taiwan Semiconductor Manufacturing Company and SK Hynix.

On a rolling 12-month basis, the Company recorded NAV and share price returns of -8.6% and -11.5% respectively, compared to -4.9% for the index.

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.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Fidelity International

More articles like this

Fidelity Emerging Markets

Where are the bright spots in emerging markets?

Emerging markets equities declined in August, dragged down by disappointing Chinese economic data and strength in the US dollar. Since then, Beijing has introduced further policy support and data points have marginally improved. While China’s growth outlook remains

Fidelity Emerging Markets

Why EM capital markets are likely to rise

Developed market equities have long dominated global equity markets, but that’s set to change in the coming decades. Kevin Daly, co-head of CEEMEA Economics in Goldman Sachs Research, explains why EM capital markets are likely to rise significantly

Fidelity Emerging Markets

Biden bets on emerging markets

U.S. President Joe Biden arrives at this weekend’s Group of 20 (G20) meeting in India with an offer for the “Global South”: whatever happens to China’s economy, the United States can help fund your development. Armed with cash

Fidelity Emerging Markets

Emerging markets brighter outlook

The outlook for emerging markets is brighter than it is for developed markets when it comes to growth, inflation and public debt, Jean-Charles (JC) Sambor, Head of Emerging Market Debt, tells Daniel Morris, Chief Market Strategist, on our

Fidelity Emerging Markets

Is now the right time to invest in Emerging Markets?

Many investors are wondering if it’s the right time to add exposure to emerging markets. With ongoing market uncertainty and the possibility of a recession, investors may be wary to add exposure to riskier segments of the market.

Fidelity Emerging Markets

Emerging markets to withstand China’s economic woes

For the past three decades, China’s economy has been a dominant factor in emerging markets for economic and corporate growth. Goldman Sachs Group Inc. strategists say that’s now changing. Calling it an “ongoing long-term divorce,” the US bank

Fidelity Emerging Markets

Investors eye new opportunities in emerging markets

A relatively robust and favourable macro outlook for countries in Asia and Latin America bodes well for investment opportunities across emerging markets (EM) for the rest of 2023. In particular, EM bonds and currencies are appealing, according to

Fidelity Emerging Markets

Fed decoupling boosts emerging market stocks

Investors are eyeing gains in emerging markets stocks and a cooling of their currencies amid an unprecedented global decoupling in the direction of interest rates. While the U.S. Federal Reserve has delivered aggressive interest rate hikes since March 2022, major

Fidelity Emerging Markets

Billionaire Mark Mobius bullish on emerging markets

Billionaire investor Mark Mobius confirmed he has no US investments, saying he is bullish on emerging markets in Asia. “I’m all international and emerging markets in particular,” the Mobius Capital Partners founder said in an interview with CNBC on Thursday.

Fidelity Emerging Markets

India set to be the poster child of emerging market growth

In a world rife with macroeconomic uncertainty, emerging markets have come under pressure. Yet one country is bucking the trend. India’s prospects look particularly strong, with the country’s economy hovering close to its pre-pandemic path despite a challenging

Fidelity Emerging Markets

India more attractive than other emerging markets

Capital Group, an American financial services company, has said that India appears to be more attractive than other emerging market in the wake of the reforms initiated by the Modi government and a boost to domestic manufacturing, offering

Fidelity Emerging Markets

Emerging markets outlook 2023

The first half of 2023 has brought a bumpy road of positive performance to emerging market (EM) equities. The year began with a bang, as global allocators bought the headlines around China’s reopening but then slowed down as

Fidelity Emerging Markets

Emerging markets stocks set to snap six-day losing streak

Emerging market stocks looked set to snap a six-day losing streak on Tuesday, after China reassured investors of its growth prospects in the second quarter, while Russia’s rouble steadied following a volatile session due to geopolitical tensions. The

Fidelity Emerging Markets

Fintech’s surging growth in emerging markets

Fintech has emerged as a disruptive force in the global financial environment. While its impact is felt globally, it is most visible in emerging economies where traditional banking infrastructure is lacking. This article examines the astonishing rise of

Fidelity Emerging Markets

A resilient outlook for emerging markets

A number of emerging markets have exhibited accelerated growth and are representing an increasing share of the global economy. Building on the encouraging post-pandemic trends of last year, emerging market equity performance started 2023 strong. While growth has

Fidelity International

Emerging markets investment trusts: Indian banks enhance FEML gains

Fidelity Emerging Markets Limited (LON:FEML) published its monthly factsheet for the period ended 30th April 2023. Portfolio Manager CommentaryEmerging markets declined in April and underperformed most developed markets. Investor sentiment was mixed during the period. Positive US employment

No more posts to show