ret.en.xx.20221231.GG00B4L0PD47.pdf
FIDELITY INVESTMENT TRUSTS
Fidelity Emerging Markets Limited Participating Preference Shares
31.12.2022 Monthly Factsheet
Investment Objective
To achieve long term growth by primarily investing in companies whose head office, listing, assets, operations, income, or revenues are predominantly in or derived from emerging markets. The Company is also able to use derivatives for efficient portfolio management, to gain additional market exposure and to seek a positive return from falling asset prices.
Investment Trust Facts
Launch date: | 19.06.89 |
Portfolio manager: | Nick Price, Chris Tennant |
Appointed to trust: | 04.10.21, 04.10.21 |
Years at Fidelity: | 25, 12 |
Total Net Assets (TNA): | £653m |
Participating preference shares in Issue: 91,100,066 | |
Share price: | 602.00p |
NAV: | 683.99p |
Discount: | 11.99% |
Gross Market Gearing: | 48.7% |
Net Market Gearing: | 0.0% |
Performance Comparator
Market Index: | MSCI Emerging Markets Index (Net) |
The same index is used in the positioning tables on this factsheet. Past performance is not a reliable indicator of future results. The value of investments can go down as well as up and you may get back less than you invested.
Portfolio Manager Commentary
Emerging markets declined in December after a strong rebound in November. However, they outperformed developed markets. Sentiment turned negative after the Fed reinforced its hawkish stance on inflation-fighting monetary policy and delivered a 50- basis-point rate hike. At the regional level, emerging Asia was the best performer with Chinese equities rising on the back of the easing of COVID-19 restrictions in more cities. On the commodity front, oil prices fell during a volatile month, as recessionary fears were replaced by hopes of the positive effects of China reopening.
The portfolio's positioning in China dragged on performance, although there were many Chinese stocks among the key contributors to relative returns. These were dominated in areas such as ecommerce, travel, and a series of consumer stocks.
At the sector level, IT stocks weighed on performance, with both South Korean and Taiwanese stocks among the detractors. Market participants worried about the Fed's desire to tackle inflation, while the outlook for the tech sector was marred by concerns that the industry could be loss making. While these remain challenging times for the industry, we believe that those concerns are largely reflected in the price, and overall, this highly consolidated industry has robust prospects when taking a medium-term view.
On a rolling 12-month basis, the Company recorded NAV and share price returns of -24.1% and -25.0% respectively, compared to -10.0% for the index.
Cumulative performance in GBP (%) | Performance for 12 month periods in GBP (%) |
Share Price | NAV | Market Index |
Performance is shown for the last five years (or since launch for funds launched within that period).
Share Price
NAV
Market Index
Performance to 31.12.22 in GBP (%)
1m | 3m | YTD | 1yr | 3yr | 5yr | |
Share Price Cumulative Growth | 0.2 | 6.6 | -25.0 | -25.0 | -19.9 | -8.3 |
NAV Cumulative Growth | -4.5 | 1.4 | -24.1 | -24.1 | -17.3 | -8.8 |
Index Cumulative Growth | -2.4 | 1.8 | -10.0 | -10.0 | 2.1 | 6.3 |
Share Price Annualised Growth | - | - | - | - | -7.1 | -1.7 |
NAV Annualised Growth | - | - | - | - | -6.2 | -1.8 |
Index Annualised Growth | - | - | - | - | 0.7 | 1.2 |
Basis: bid-bid with income reinvested, in GBP, net of fees.
Market indices are sourced from RIMES and other data is sourced from third-party providers such as Morningstar.
Key Risks
The value of investments can go down as well as up and you may not get back the amount invested. Overseas investments may be more volatile than established markets. The shares in the investment trust are listed on the London Stock Exchange and their price is affected by supply and demand. The investment trust can gain additional exposure to the market, known as gearing, potentially increasing volatility.
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FIDELITY INVESTMENT TRUSTS
Fidelity Emerging Markets Limited Participating Preference Shares
31.12.2022 Monthly Factsheet
Equity Exposure % Total Net Assets (% TNA)
Exposure | |
(% TNA) | |
Gross Market Exposure | 148.7 |
Net Equity | 97.9 |
Other | 1.3 |
Uninvested Cash | 0.8 |
Notes on Portfolio Construction and a description of how data is calculated and presented are on page 3. Definitions of the terms used in the Equity Exposure table are in the Glossary.
Market Capitalisation Exposure (% TNA)
GBP | Net | Index | Relative |
>10bn | 82.5 | 66.8 | 15.7 |
5-10bn | 14.9 | 17.4 | -2.5 |
1-5bn | 5.1 | 13.8 | -8.7 |
0-1bn | 3.7 | 0.1 | 3.6 |
Total Market Cap Exposure | 106.2 | 98.1 | |
Other Index / Unclassified | -8.3 | 1.9 | |
Total Equity Exposure | 97.9 | 100.0 |
Sector/Industry Exposure (% TNA) | Country Exposure (% TNA) | |||||||
GICS Sector | Net | Index | Relative | Net | Index | Relative | ||
Financials | 33.1 | 22.1 | 11.0 | China | 20.4 | 32.3 | -11.9 | |
Information Technology | 21.0 | 18.6 | 2.4 | India | 19.2 | 14.4 | 4.8 | |
Consumer Discretionary | 17.7 | 14.1 | 3.6 | Hong Kong | 13.2 | 0.0 | 13.2 | |
Materials | 10.5 | 8.9 | 1.6 | South Africa | 11.2 | 3.7 | 7.5 | |
Consumer Staples | 10.2 | 6.4 | 3.8 | Taiwan | 8.9 | 13.8 | -4.9 | |
Energy | 8.7 | 4.9 | 3.8 | Brazil | 6.8 | 5.3 | 1.5 | |
Industrials | 8.5 | 6.1 | 2.4 | Kazakhstan | 5.1 | 0.0 | 5.1 | |
Communication Services | 0.6 | 9.9 | -9.3 | Peru | 4.8 | 0.3 | 4.5 | |
Health Care | -0.1 | 4.1 | -4.2 | Canada | 4.2 | 0.0 | 4.2 | |
Real Estate | -1.3 | 1.9 | -3.3 | France | 3.6 | 0.0 | 3.6 | |
Utilities | -1.6 | 3.0 | -4.7 | Others | 16.1 | 30.3 | -14.2 | |
Total Sector Exposure | 107.2 | 100.0 | Total Country Exposure | 113.3 | 100.0 | |||
Other Index / Unclassified | -9.3 | 0.0 | Other Index / Unclassified | -15.4 | 0.0 | |||
Total Equity Exposure | 97.9 | 100.0 | Total Equity Exposure | 97.9 | 100.0 | |||
Top Net Long Positions (% TNA) | ||||||||
GICS Sector | Country | Net | Index | Relative | ||||
TAIWAN SEMICONDUCTOR MFG CO | Information Technology | Taiwan | 8.2 | 5.7 | 2.5 | |||
HDFC BANK LTD | Financials | India | 7.6 | 0.0 | 7.6 | |||
KASPI/KZ JSC | Financials | Kazakhstan | 5.1 | 0.0 | 5.1 | |||
AIA GROUP LTD | Financials | Hong Kong | 4.7 | 0.0 | 4.7 | |||
NASPERS LTD | Consumer Discretionary | South Africa | 4.5 | 0.6 | 4.0 | |||
ALIBABA GROUP HOLDING LTD | Consumer Discretionary | China | 4.5 | 2.6 | 1.9 | |||
CHINA MENGNIU DAIRY CO | Consumer Staples | China | 3.7 | 0.2 | 3.4 | |||
TOTALENERGIES SE | Energy | France | 3.6 | 0.0 | 3.6 | |||
INFOSYS LTD | Information Technology | India | 3.6 | 1.0 | 2.6 | |||
ICICI BANK LTD | Financials | India | 3.5 | 0.9 | 2.7 |
Top Overweight Positions (% TNA) | Top Underweight Positions (% TNA) | |||||||
Net | Index | Relative | Net | Index | Relative | |||
HDFC BANK LTD | 7.6 | 0.0 | 7.6 | TENCENT HLDGS LTD | 0.3 | 4.2 | -3.9 | |
KASPI/KZ JSC | 5.1 | 0.0 | 5.1 | MEITUAN | 0.0 | 1.6 | -1.6 | |
AIA GROUP LTD | 4.7 | 0.0 | 4.7 | RELIANCE INDUSTRIES LTD | 0.0 | 1.5 | -1.5 | |
NASPERS LTD | 4.5 | 0.6 | 4.0 | SAMSUNG ELECTRONICS CO LTD | 2.4 | 3.8 | -1.5 | |
TOTALENERGIES SE | 3.6 | 0.0 | 3.6 | Short Position - name withheld | -1.1 | 0.0 | -1.1 | |
CHINA MENGNIU DAIRY CO | 3.7 | 0.2 | 3.4 | VALE SA | 0.0 | 1.0 | -1.0 | |
SOUTHERN COPPER CORP DEL | 2.8 | 0.1 | 2.7 | Short Position - name withheld | -1.0 | 0.0 | -1.0 | |
ICICI BANK LTD | 3.5 | 0.9 | 2.7 | Short Position - name withheld | -1.0 | 0.0 | -1.0 | |
INFOSYS LTD | 3.6 | 1.0 | 2.6 | Short Position - name withheld | -1.0 | 0.0 | -1.0 | |
TAIWAN SEMICONDUCTOR MFG CO | 8.2 | 5.7 | 2.5 | CHINA CONSTRUCTION BANK | 0.0 | 1.0 | -1.0 |
Net Long Positions Concentration (% TNA) | Full portfolio listings, with the appropriate time lag as agreed by the Board, | ||
are available on request from Fidelity Investment Trusts. | |||
Fund | Index | Figures may not always sum to totals due to rounding | |
The data presented in this document is sourced from Fidelity's own records. | |||
Top 10 | 49.0 | 23.3 | Whilst every effort is made to ensure the accuracy of these records, there |
may timing and other differences from the official accounting data compiled | |||
Top 20 | 72.8 | 30.0 | by JPMorgan. |
Top 50 | 112.1 | 41.8 |
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ret.en.xx.20221231.GG00B4L0PD47.pdf
FIDELITY INVESTMENT TRUSTS
Fidelity Emerging Markets Limited Participating Preference Shares
31.12.2022 Monthly Factsheet
Approach and Style
Administrative & Dealing Information
Fidelity Emerging Markets Limited adopts a truly active approach; using the broad investment powers of the investment company the Company seeks businesses across the full market cap spectrum to best exploit the large 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 Portfolio Manager takes 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 Company utilises enhanced investment powers; seeking to
Financial Year End: Reference currency: Company domicile:
Company legal structure: Capital guarantee:
ISIN:
SEDOL:
Bloomberg: Distribution frequency:
Charges made to income or capital: Other Ongoing Costs (including AMC/excluding Portfolio transaction costs): Portfolio Transaction Costs:
Annual Management Charge:
30th June
US Dollar (USD) Guernsey Investment Trust No GG00B4L0PD47 B4L0PD4
GSS LN
Bi Annual 25/75
1.05%
Not Available 0.60% (net assets)
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 the Company can take advantage of, as an additional source of performance.
Independent Assessment
Information in this section is the latest available at date of publication. Further details can be found in the Glossary section of this factsheet. As some ratings agencies may use past performance to produce their assessments, these are not a reliable indicator of future results.
Morningstar ratingTM | ** |
Portfolio Construction - Explained | How data is calculated and presented |
This factsheet contains information about the composition of the fund at a particular point in time. It aims to help you understand how the fund manager is positioned to achieve the fund's objectives.
The Equity Exposure table provides an overall view of the fund. Net Equity represents - in percentage terms - how much of the fund is invested in the market, netting off long and short positions. The higher the figure, the more the fund will take part in any market rises (or falls). It is important to note that Net Equity can be greater than 100% (for example if the manager is using derivative contracts) and when it is, the portfolio may be described as geared.
The exposure and positioning tables on page 2 break the fund down into a number of different views, each providing a different perspective on the fund's investments.
Portfolio composition data has been calculated and presented according to several general principles, which are listed below.
- Aggregation: all investments, including derivatives, linked to a particular issuing company have been combined to form a total percentage holding for each company. The aggregate holding is referred to in this factsheet as a position. Where a company is listed in two separate countries, each listing may be classified as a separate issuing company. Exchange Traded Funds (ETFs) and derivatives on ETFs are treated as individual securities - ie not aggregated.
- Categorisation: for investments that have underlying securities we use the attributes of the underlying issuing company or common share to determine the appropriate sector, market capitalisation band and geographic area.
- Derivatives: all derivatives are included on an exposure basis and, where necessary, are delta-adjusted.Delta-adjusting expresses derivatives in terms of the equivalent number of shares that would be needed to generate the same return.
- "Basket" securities: securities that represent a number of company shares - like index futures or options - are allocated to categories (such as country) whenever possible. Otherwise they are included in the "Other Index / Unclassified" category.
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FIDELITY INVESTMENT TRUSTS
Fidelity Emerging Markets Limited Participating Preference Shares
31.12.2022 Monthly Factsheet
ESG Metrics
The factsheet is a snapshot of the portfolio at the date indicated above. ESG ratings distribution may vary over time. Representation of this data is for informational purposes only. If the SFDR classification is shown as 6 below then this fund does not promote environmental or social characteristics nor does it have a sustainable investment objective. If it is shown as 8, the fund promotes environmental or social characteristics. If it is shown as 9, the fund has a sustainable investment objective. Product-specific information can be found on our website at www.fidelityinternational.com
Sustainability Characteristics (31.12.2022) | MSCI Ratings Distribution % (31.12.2022) | |||
Fund | Index | |||
MSCI ESG Fund Rating (AAA-CCC) | N/R | N/R | ||
Weighted Average Carbon Intensity (tCo2e/$M Revenue) | 221.3 | 375.6 | ||
Carbon Footprint (tCO2/$M Invested) | 132.1 | 261.8 | ||
SFDR Classification | N/A | N/A |
N/A - Not Applicable
N/R - Not Rated
Fund
Index
Glossary
MSCI ESG Fund Rating: This shows the fund's ESG rating based on the Quality Scores given to the fund by MSCI. This ranges from AAA, AA (Leader), A, BBB, BB (Average) to B, CCC (Laggard). To be included in MSCI ESG Fund Ratings, 65% of the fund's gross weight must come from covered securities (and excluding cash), the fund's holdings date must be less than one year old and the fund must have at least ten securities.
Weighted Average Carbon Intensity: is calculated as the sum of each portfolio weight multiplied by the Co2e per $M of Revenue of each holding. This metric provides a snapshot of the fund's exposure to carbon-intensive companies and includes scope 1 and scope 2 carbon emissions. For carbon data, the coverage of underlying securities must be over 50% for data to be shown.
Carbon Footprint: Provides a normalized snapshot of the funds contribution to carbon emissions.
SFDR Classification: Shows the classification given to each fund as part of the EU Sustainable Finance Disclosure Regulation (SFDR). Article 9 funds aim to achieve an ESG outcome and are products with ESG objectives. Article 8 funds focus on promoting ESG characteristics and this must be a primary focus of the product. Article 6 funds integrate sustainability risks into investment analysis and decision-making, without the funds promoting environmental or social characteristics or having sustainable investments as their objective.
MSCI Ratings Distribution: This shows the percentage distribution of ESG ratings in the fund, based on the Net Asset Value of holdings excluding cash, liquidity funds, derivatives and Exchange Traded Funds.
Disclaimer
ESG Rating Source: ©2022 MSCI ESG Research LLC. Reproduced by permission, no further distribution. MSCI ESG Research LLC and its affiliates (the "ESG Parties"), obtain information from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accuracy and/or completeness of any data herein. None of the ESG Parties makes any express or implied warranties of any kind, and the ESG Parties hereby expressly disclaim all warranties of merchantability and fitness for a particular purpose, with respect to any data herein. None of the ESG Parties shall have any liability for any errors or omissions in connection with any data herein. Further, without limiting any of the foregoing, in no event shall any of the ESG Parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. The information is as at the date of production based on data provided by MSCI. There may be timing differences between the date at which data is captured and reported. For more up to date information, you can visit https://www.msci.com/esg-fund-ratings
Carbon Data Source: Data provided by ISS ESG. All rights in the information provided by Institutional Shareholder Services Inc. and its affiliates (ISS) reside with ISS and/or its licensors. ISS makes no express or implied warranties of any kind and shall have no liability for any errors, omissions or interruptions in or in connection with any data provided by ISS. The information is as at the date of production based on carbon data provided by ISS. There may be timing differences between the date at which data is captured and reported.
SFDR Classification is assigned by Fidelity in line with the EU Sustainable Financial Disclosure Regulation.
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ret.en.xx.20221231.GG00B4L0PD47.pdf
FIDELITY INVESTMENT TRUSTS
Fidelity Emerging Markets Limited Participating Preference Shares
31.12.2022 Monthly Factsheet
Glossary / Additional Notes
Equity Exposure notes
GROSS MARKET EXPOSURE
Gross Market Exposure is the total of long exposures, plus the total of short exposures, and less the total of exposures hedging the portfolio, expressed as a percentage of shareholders' funds (Total Net Assets).
NET EQUITY
The net positive exposure to the market with short and hedge positions subtracted from long positions.OTHER
The value of any non-equity investments (excluding cash funds) expressed as a percentage of TNA.
UNINVESTED CASH
This is 100% minus the fund's Net Equity exposure and minus Other. This leaves any residual cash exposure that is not invested in shares or via derivatives.
Investment Trust Facts
NAV
The total value of a company's assets less the total value of its liabilities is its net asset value (NAV). For valuation purposes it is common to divide net assets by the number of shares in issue to give the net assets per share. NAV calculations can include or exclude current financial year income. For the purposes of this factsheet, they are valued with assets including income and costs and with debt valued at the market.
PREMIUM
If the share price of an investment company is higher than the net asset value (NAV) per share, the company is said to be trading at a premium. The premium is shown as a percentage of the NAV.
DISCOUNT
If the share price of an investment company is lower than the net asset value (NAV) per share, the company is said to be trading at a discount. The discount is shown as a percentage of the NAV.
GEARING
Gearing is the Market Exposure figure (either gross or net) expressed in excess of Total Net Assets. It represents the additional exposure to the market above Shareholders' Funds.
FAIR VALUE
The fair value of investments is initially taken to be their cost and is subsequently measured as follows: Listed investments are valued at bid prices, or last market prices, depending on the convention of the exchange on which they are listed; and
Unlisted investments are investments which are not quoted, or are not frequently traded, are stated at the Directors' best estimate of fair value and take account of the cost of the investment, recent arm's length transactions in the same or similar investments and financial performance of the investment since purchase.
General notes
TOTAL NET ASSETS (TNA)
The Company's total assets minus its total liabilities - also known as Shareholders' Funds. It represents the amount by which a company is financed through common and preferred shares.
INDEX
The index used in the positioning tables on page 2 is the index defined in the Performance Comparator section on page 1.
TOP NET LONG POSITIONS
Those companies in which the largest percentages of the trust's total net assets are effectively invested. Positions in other funds - including ETFs (Exchange Traded Funds) - can appear in this table, but index derivatives form part of an "Other Index / Unclassified" category which will not appear.
TOP OVERWEIGHT & UNDERWEIGHT POSITIONS
Those positions which have the largest active weight relative to the index. Positions in other funds - including ETFs (Exchange Traded Funds)
- can appear in this table, but index derivatives form part of an "Other Index / Unclassified" category which will not appear. In the underweight table, any short position names have been withheld in line with Fidelity's disclosure policy.
NET LONG POSITIONS CONCENTRATION
Illustrates the weight of the top 10, 20 and 50 positions in the trust and the weight of the top 10, 20 and 50 positions in the index. It does not attempt to show the coincidence of security ownership between fund and index. The sector/industry classification used (i.e. GICS, ICB, TOPIX and IPD) varies by fund. Full descriptions can be found below.
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Fidelity Emerging Markets Ltd. published this content on 16 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 March 2023 12:04:25 UTC.