Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for October 2024.
Emerging markets equities retreated in October and underperformed developed markets. Risk-off sentiment emerged, and the US dollar strengthened, while there were concerns over the effectiveness of China’s policy stimulus measures that were announced towards the end of September. The ongoing uncertainty around the US election also kept sentiment in check.
The portfolio outperformed the index over the month. At a sector level, holdings within the financial sector notably enhanced performance. The largest contributor was the position in Kaspi, Kazakhstan’s e-commerce and payments platform, after it announced its intention to acquire Turkish e-commerce player Hepsiburada, a move that would allow Kaspi to expand its addressable market. Brazilian challenger bank Nu Holdings also rallied, with the stock continuing to perform well amid a strong growth outlook for the digital bank. The Trust’s position in Hong Kong based insurer AIA Group, however, featured as the top detractor. Although the group announced a little beat in value of new business in its latest results, sentiment towards the Hong Kong market remained weak and acted as a drag on the stock.
The Company’s NAV rose 19.5% during the 12-month period ended October 2024, outperforming its reference index which rose by 18.3%. The Company’s share price rose 19.9% over the same period.
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.