Fidelity Emerging Markets confident as net asset value return surges

Fidelity Emerging Markets Ltd on Tuesday reported a notable surge in net asset value in financial 2026, arguing that it is in a stronger position than most of its peers.

The investment company's NAV per participating preference share stood at USD21.94 on June 30, up from USD11.99 a year earlier.

FEM's NAV total return for the year ended in June surged to 92%, beating its benchmark, the MSCI Emerging Markets Total Return index, which returned 48% over the same period.

The company has declared a final dividend of 33 US cents per participating preference share, up from 26 cents the previous year.

Portfolio Managers Nick Price and Chris Tennant said: "Emerging markets are not without their risks, as illustrated by the recent geopolitical tensions in the Middle East. However, with a supportive macroeconomic backdrop and several key drivers supporting earnings growth, we think the case for investing in emerging markets today is particularly compelling."

According to FEM Chair Heather Manners, emerging markets "are on a far sounder economic footing than most large developed markets, which are beset by geopolitical tensions, groaning under the weight of enormous government debt and battling food and energy price inflation".

"One of the relative headwinds facing emerging markets in recent years has been investor appetite, which has been far more focused on developed markets, most particularly the US... Despite the net outflows from emerging markets, your board remains confident that emerging markets are at the foothills of what can be achieved over the coming years."

Manners added: "It is, however, an inescapable truth that markets can go down as well as up. This is one of the reasons why Nick, Chris and the team deploy such a broad set of tools, including the ability to take short positions, as well as ensuring that the company’s holdings are well diversified across countries, themes and sectors. The resulting portfolio looks genuinely different from the majority of peers and is arguably better positioned to offer a degree of downside protection should a period of market consolidation or retrenchment occur."

FEM shares rose 0.9% to 1,548.00 pence each on Tuesday morning in London. The stock is up 59% over the past year.

Copyright 2026 Alliance News Ltd. All Rights Reserved.