Emerging markets have never been homogenous, but in 2023 their fortunes diverged more than ever before. On the one hand was China, where stockmarkets slumped for a third consecutive year. On the other was India, Latin America and Taiwan, where punchy economic growth was reflected in buoyant stockmarkets.
China’s weakness had a significant impact on the aggregate performance of emerging markets. The overall MSCI Emerging Markets index dropped 2.9% in the year to 31 January, compared to a rise of 14.7% for the MSCI World. However, take out China and the result is very different. The MSCI EM ex China index rose 10.4% over the same period. India was the year’s top-performing major market, with the MSCI India rising 29.8%.
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.
