Fidelity Emerging Markets Limited (FEML) benefits from the experience of portfolio managers Nick Price and Chris Tennant, who have been investing in emerging markets for most of their respective careers. Through the FEML portfolio they take a go-anywhere approach within the emerging markets space, looking for on- and off-benchmark stocks across each sector, market cap and geography, including frontier markets - these are all fair game. They can also use derivatives to go long or short.

Nick and Chris point out that emerging-market businesses are currently sitting at attractive valuations versus history, as well as relative to their developed market counterparts. At present the managers argue there are opportunities across emerging markets, including Mexico, which is set to benefit from nearshoring, and in China, where many high-quality stocks have disproportionately derated (see Portfolio section). In 2023 the managers have been building higher conviction positions, given the valuations and the opportunity set they see, remaining disciplined in their process while doing so. They continue to identify, in their view, best-in-class emerging-market businesses, as well as make use of a broad set of tools, such as the ability to take out short positions, to help generate multiple sources of returns.

At the time of writing, FEML trades at a discount of 11.7% and the board has unveiled a package of measures aimed at narrowing it.