Fidelity Emerging Markets Limited
Last Deal Price (p)620.30
Net Change (%) ↑↓+1.44
Estimated NAV (p)708.02
Source: Morningstar PLC. Share price is delayed by 15 minutes. Net Asset Value (NAV) and discount/premium are estimated.* The data is sourced from Fidelity’s own records. Whilst every effort is made to ensure the accuracy of these records, there may be timing and other differences from the official accounting data compiled by JP Morgan.
We speak the language of opportunity - wherever it emerges
Home to 70% of the world’s population, half of its land mass and 40% of economic output, the case for investing in emerging markets (EM) is clear to see.
However, while the developing world is home to some of the world’s fastest growing and most innovative companies, successfully navigating this large and diverse universe requires a global research capability and local expertise.
Whether it’s in South African mining, Indian financial services or Chinese infrastructure, we know where to unearth these hidden opportunities, meaning you can make the most of our extensive expertise without learning a whole new language.
Managed by an experienced investment team, Fidelity Emerging Markets Limited (FEML) utilises the breadth and depth of Fidelity’s research resources to build a portfolio of quality growth EM companies that have the ability to deliver strong and sustainable investment returns.
FEML also actively takes advantage of its closed-end structure, with the portfolio management team utilising an extended toolkit to express both positive and negative investment views in an efficient manner. This is particularly attractive in EM, where equity markets are more volatile and valuations can move to extreme levels in both directions.
Important information: please keep in mind that the value of investments can go down as well as up, so you may get back less than you invest. Past performance is not a reliable indicator of future results. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.
Taking stock in a volatile market
Amid continued volatility across emerging markets, Fidelity Emerging Markets Limited portfolio manager Nick Price takes stock of recent developments and shares his latest views. With the prolonged war in Ukraine and China’s zero Covid policy weighing on investor sentiment, he provides an update on the portfolio and positioning amid continued uncertainty.Find out more
Emerging markets - from uncertainty to opportunity?
As investors grapple with economic uncertainty and mounting regulation, the outlook for emerging markets may seem less positive. Against this backdrop, Fidelity Emerging Markets Limited portfolio manager Nick Price outlines why he expects to find opportunities amidst the uncertainty. And while there are reasons to believe that volatility will persist, he explains why the worst may be behind us.Read now
Portfolio Managers Nick Price and Chris Tennant adopt a truly active approach; using the broad investment powers of the investment company they seek companies across the full market cap spectrum to best exploit what is a vast investable universe. Idea generation draws on Fidelity’s emerging markets investment platform, adopting a rigorous approach which allows for rapid information transmission through team and multiple layers of due diligence on each stock.
The portfolio is run in an unconstrained manner and reflects the very best ideas from across the emerging markets. Stock selection is bottom-up and driven by fundamentals and the team take a consistent approach focusing on quality, consistency of returns and a reasonable price. The portfolio is constructed in a benchmark agnostic manner, only owning stocks represented in the market index when they offer the characteristics outlined above. Stocks present in the market index will generally only be bought for the fund if they satisfy the selection criteria and offer an adequate level of total return. Sector and country allocation are therefore residual exposures resulting from the combination of the underlying individual long and short positions that are selected for the portfolio.
The managers utilise enhanced investment powers; seeking to exploit a broad range of opportunities by adopting an active ‘extension’ investment style. This results in long positions which are focused on dominant franchises positioned to take advantage of structural growth opportunities and short positions are targeted at the weakest stocks most exposed to competitive threats and financial distress. Using short positions, these weaker businesses form some of the additional investment opportunities that we can take advantage of, as an additional source of performance. While the portfolio is managed in a less constrained manner, the team is always fully aware of risk positioning, and the portfolio is subject to stringent risk management and oversight.
The team can also pursue unlisted (pre-IPO) and illiquid smaller companies’ opportunities in order to make the fullest use of the Company’s closed end structure.
Nick Price, Portfolio Manager
Nick Price led the development of Fidelity’s Emerging EMEA group, launching the team’s first portfolio in 2005. The investment process has been consistently used by the current team since it was first adopted in 2005 and remains the cornerstone of Fidelity’s emerging markets equity strategies. It was subsequently deployed by the group on a global basis in 2009. In 2011, Nick developed and led the launch of the FAST-Emerging Markets strategy, for which he remains Lead Portfolio Manager. Nick joined Fidelity in January 1998 as a research analyst covering several pan-European sectors before being selected as the assistant portfolio manager for Fidelity’s flagship European Growth Fund in September 2004.
Prior to joining Fidelity, Nick was an Accountant with SBC Warburg from 1996-1997, based in London; an FX Product Accountant with Daiwa Europe Bank between 1995-1996, based in London; a Project Accountant for JP Morgan from 1993-1995, based in London and Senior Auditor for Price Waterhouse from 1991-1993, based in Johannesburg. Nick holds a Bachelor of Commerce and Diploma in Accounting from the University of Natal and is a Member of the South African Institute of Chartered Accountants and is a CFA Charter holder.
Chris Tennant, Co-Portfolio Manager
Chris Tennant, Co-Portfolio Manager for the FAST-Emerging Markets strategy, joined Fidelity in January 2011 as an Equity Analyst, covering European Transportation. In October 2012, he rotated onto the London based EM team to cover EMEA and Latin America Metals & Mining stocks. In January 2015, Chris was chosen by Nick to undertake a newly created EM shorting analyst role. Since then, they have worked in close partnership to identify opportunities for the short book, initially focused on EMEA and Latin America. In July 2019, Chris was appointed to an as Assistant Portfolio Manager on the FAST-Emerging Markets strategy, before his subsequent promotion to Co-Portfolio Manager in 2021. In this role, Chris’ primarily focus remains on the short book. He continues to work in conjunction with the wider team of short analysts contributing to the strategy. In parallel with these responsibilities Chris is a member of the Emerging EMEA and Latin America Equities portfolio management teams. Chris has spent his entire career at Fidelity. He holds a master’s degree in Engineering from Imperial College London.
The Company’s investment objective is to achieve long-term capital growth from an actively managed portfolio made up primarily of securities and financial instruments providing exposure to Emerging Market companies, both listed and unlisted.
Summary of the key aspects of the Investment Policy
The Company aims to achieve long term growth by primarily investing in securities and financial instruments providing exposure to emerging markets companies.
The Investment Manager will invest at least 80% in companies whose head office, listing , assets, operations, income, or revenues are predominantly in or derived from emerging markets.
The Investment Manager will maintain a portfolio with at least 75 holdings in companies listed or operating in at least 15 countries.
The Company may also invest into other transferable securities, investment companies, money market instruments, unlisted shares, cash and deposits and is also able to use derivatives for efficient portfolio management, to gain additional market exposure (gearing), to seek a positive return from falling asset prices, and for other investment purposes.
Your Board of Directors
Hélène Ploix (French) is a Partner and former chairman of Paris-based private equity firm Pechel Industries. She has had an extensive career in finance and investment in the public and private sectors, both in France (primarily at the French state-owned Caisse des Dépôts et Consignations) and internationally (notably as an Executive Director at the IMF, World Bank and as a Member of the Investments Committee of the UN Joint Staff Pension Fund). She is currently a NonExecutive Director of Ferring (Switzerland) and SES-imagotag, Non-Executive Chairman of Sogama Crédit Associatif and was previously at a number of other companies, including Sofina, The Boots Company PLC, BNP Paribas and Publicis. Mrs Ploix was educated at the Institut d’Etudes Politiques, the University of California at Berkeley and INSEAD. She is based in France.
Member of the Audit and Risk Committee
Chairman of the Nomination Committee
Appointed 2 November 2012
Russell Edey (British) spent the majority of his career at NM Rothschild & Sons, where he held a number of positions over his 35 years at the bank, including Head of Corporate Finance and subsequently Non-Executive Deputy Chairman. He is a Non-Executive Director of Blackrock World Mining Trust plc. He previously spent 12 years as Chairman of AngloGold Ashanti in South Africa, and in recent years he has also served as a NonExecutive Director of Old Mutual plc, Associated British Ports plc, FKI plc, and Paris Orleans SA. He qualified as a Chartered Accountant and began his career in finance at Anglo American in South Africa. He is based in the UK.
Chairman of the Audit and Risk Committee
Senior Independent Director
Appointed 1 January 2015
Sujit Banerji (Indian) is an independent advisor on corporate strategy to a number of companies in the finance and finance-related technology sectors globally. In 2009 he completed a 33 year career at Citigroup where he had been a Managing Director since 1996, latterly serving as Head of Strategy and Institutional M&A for Europe, the Middle East and Africa (‘MENA’). His career at Citi covered a number of regional roles including strategy and corporate finance, and relationships with multinational clients across the MENA region. He has also served as the country and region head for Citi in India, and as the head of the corporate business in Thailand. Over the course of his career he has been based in India, Bangladesh and Thailand as well as in Europe, and is currently based in Singapore. He was educated at the University of Poona (Pune) and the University of Bombay (Mumbai)
Appointed 31 October 2013
Saffet Karpat (Swiss/Turkish) is a consultant on strategy to management teams of organisations based in Turkey. He is a Board member of Eczacıbaşı group, a Turkish conglomerate with businesses in construction materials, consumer goods, mining and medical services. Previously he worked for Procter & Gamble (‘P&G’) for 30 years in various financial and senior management roles across a number of emerging markets; prior to retiring from P&G in 2013 he was Vice President and General Manager of the Central and Eastern Europe and Middle East and Africa Division, responsible for Turkey, Central Asia, Israel and the Caucasian region. From 2013 to 2016 he was a member of the Board and the Executive Committee of Sütaş Dairy Company, and he has been an investor in agriculture in the Aegean region of Turkey since 2011. He studied Business Administration at Istanbul University and received an MBA from Lausanne University. He is based in Switzerland.
Member of the Audit and Risk Committee
Appointed 1 October 2011
Katherine Tsang (Canadian) spent 22 years with Standard Chartered Bank, latterly in the role of Chairperson of Greater China, before retiring in 2014. Following her retirement, Ms Tsang founded Max Giant that trades in different markets as well as making direct investments in Asia. Ms Tsang is currently an independent Non Executive Director on the Board of China CITIC Bank International Limited and Budweiser Brewing Company APAC Limited. She also serves as a member of the Advisory Council for China of the City of London, and is an honorary Board member of Shanghai Jiao Tong University. She has previously served as an independent Non-Executive Director of Gap Inc., and Baoshan Iron & Steel Co. Limited, a member of the World Economic Forum’s Global Agenda Council on China, and a member of Sotheby’s Advisory Board. She is based in Hong Kong.
Appointed 19 July 2017
Dr Simon Colson (British) has over 30 years’ experience in financial markets, working in investment banking, investment management and financial consulting. From 1995-2001 he was Managing Director, Deutsche Bank AG London, in charge of closed-end fund origination and distribution, and in previous roles was responsible for the launch, restructuring and repurposing of a significant number of investment companies. From 2002-2005 he was a non-executive director of The Association of Investment Companies. In 2002 he started his own FCA regulated consulting and distribution business which raised assets for emerging managers across a range of traditional and alternative asset classes (including closed-end funds). In 2017 he relinquished his FCA licence to concentrate on unregulated advisory and non-executive work. He is currently a non-executive director of the Children’s Liver Disease Foundation. He is a qualified medical doctor and holds an MBA in Finance & Investment from Cass Business School (University of London). Dr Colson is based in the UK.
Appointed 1 July 2019
Torsten Koster (Swiss) has over 30 years’ experience working for large multi-national companies. He spent two periods at Nestle SA (1991-1997 and 2003-2016). During his second spell he held the positions of Chief Financial Officer Nestle Russia & Eurasia (2007-2011) and Chief Financial Officer Nestle Nespresso SA (2011-2016). He also held the positions of Chief Financial Officer at Lukoil SA (1998-2000) and Elca Informatique SA (2000-2003). In 2016 Torsten started his own consultancy business, Baussan Concept SA providing due diligence and portfolio services to European and US based private equity firms. He was a board member of SodaStream International (2016-2018) (NASDAQ:SODA) and is currently a board member of Banque Heritage SA and Natra SA (both of which are unlisted entities). He holds a Masters degree from HEC Lausanne
Appointed 1 July 2020
Reports and Literature
Latest monthly factsheet
Contains the latest portfolio manager commentary, performance data and breakdown of the trust’s holdings.
The latest annual report includes an update on the trust’s strategy, governance and financial performance.
The half-yearly report includes the Portfolio Manager’s review, financial highlights and latest portfolio holdings.
Fidelity took over the management of the Company from Genesis Investment Management from 4th October 2021. Please note some literature will still reference Genesis Investment Management.
Investors should be aware that the content of the Key Information Document (KID), including methodologies for the calculation and presentation of risks, performance scenarios and costs are defined by technical standards under the EU’s PRIIPs Regulation. The forward-looking Performance Scenarios are based on degrees of variation from historic performance, and cannot be guaranteed. The figures in the KID may not reflect the expected returns for the Company and will be higher following periods of strong returns and lower following market falls. Please remember that past performance is not a guide to future performance.
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News & Insights - Fidelity Emerging Markets Ltd
*The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
The value of investments can go down as well as up and investors may not get back the amount invested. Overseas investments will be affected by movements in currency exchange rates. Investments in emerging markets can be more volatile than other more developed markets. The use of financial derivative instruments for investment purposes, may expose the fund to a higher degree of risk and can cause investments to experience larger than average price fluctuations. Increased and more complicated use of derivatives may result in leverage. In such situations performance may rise or fall more than it would have done otherwise. Investors may be exposed to the risk of financial loss if a counterparty used for derivative instruments subsequently defaults. Emerging Market portfolios are likely to have, high volatility owing to its portfolio composition or the portfolio management techniques. Currency hedging may be used to substantially reduce the risk of losses from unfavourable exchange rate movements on holdings in currencies that differ from the dealing currency. Hedging also has the effect of limiting the potential for currency gains to be made.
Heather Manners (British) is an award-winning market professional with some 34 years' experience of investment in Asia, mostly recently, and for the past 15 years as the co-founder, CEO and CIO of Prusik Investment Management. Heather is also a non-executive director of Montanaro Asset Management and Collidr Asset Management respectively and previously was a non-Executive Director of Aberdeen New Dawn. Heather began her career at Henderson Global Investors Limited where, latterly, she was Head of Asia and Emerging Markets.
Appointed on 5 May 2022