Fidelity Emerging Markets Limited (LON:FEML) is the topic of conversation when Amber Gordon, Senior Investment Specialist Equities sits down with Chris Tennant, Co-Portfolio Manager at Fidelity Emerging Markets.
The interview covers the strategy of investing in high-quality businesses within emerging markets, highlighting the ability to invest in smaller companies and to short underperforming stocks.
Fidelity’s advantages in the emerging market equities space, such as the experienced leadership of Nick Price, the extensive local analyst team, and the importance of research trips for direct engagement with investment opportunities, particularly in Saudi Arabia and Brazil.
It includes specific areas of interest, like the attractive economic growth and investment opportunities in Latin America, especially Brazil and Mexico, benefiting from near-shoring trends and controlled inflation. They also mention investments in Saudi Arabia, like the water utility company al-Qaeda, benefiting from the country’s growth and water scarcity.
The outlook for 2024 and beyond for emerging markets is viewed positively, with controlled inflation, declining interest rates, strong fiscal balances, and the completion of deleveraging in China’s property sector leading to attractive valuations and investment opportunities.
