Fidelity Emerging Markets Limited (LON:FEML) has announced its monthly factsheet for November 2024.
Portfolio Manager Commentary
Emerging market equities remained under pressure in November and underperformed developed markets. The outcome of the US election and rhetoric around tariffs, along with a stronger US dollar, weighed on investor sentiment.
The portfolio outperformed the index over the month. At a sector level, stock picking within the consumer discretionary sector added notable value, while stock selection within financials was a drag on performance. From a country perspective, stock selection across India and South Africa proved rewarding, while the Trust’s Brazilian holdings detracted. India’s online travel agency MakeMyTrip was the top contributor, as the share price rallied following news that the company was conducting an acquisition to cement its position in the corporate travel and expenses segment. Shares in Georgian bank TBC Bank also advanced on good quarterly results. Southern Africa supplier of cement PPC was another source of strength; driven and/or as it rallied with the broader market. Meanwhile, weakness in Brazilian financials including Inter & Co, digital challenger bank Nu Bank and wealth manager XP reflects the continued decline in the Brazilian market this year as fiscal pressures persist and the central bank hikes interest rates.
The Company’s NAV rose 15.7% during the 12-month period ending 30 November 2024, outperforming its reference index which rose by 11.4%. The Company’s share price rose 15.0% 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.