Page 17 - DIY Investor Magazine | Issue 41

the consensus. Another key factor is a structural flaw or change in the business model.
The managers met with one company in the short book on their Polish trip. This company’s margins have come under substantial pressure in recent years, forcing them to pivot into a completely unrelated sector to the core business. The pivot isn’t proving to be successful and it looks likely debt will increase over the course of 2024.
Poland is obviously only a fraction of the emerging market universe and FEML’s net exposure to the country is broadly in line with the benchmark’s. However, the country is a good example of an emerging market story playing out, as well as illustrating the opportunities investors can benefit from when that takes place.
And as readers can infer,
‘THE MANAGERS LOOK FOR FEML’s strong research
COMPANIES THAT ARE team and on the ground
VALUED ATTRACTIVELY BUT approach means it’s well
WHICH HAVE THE placed to take advantage
POTENTIAL TO DELIVER of these opportunities
SUSTAINABLE EARNINGS when they present
GROWTH OVER themselves. That can be
THE LONGTERM’ true of a growth story like Auto Partner but also with the short book, which can be used to drive outperformance from poorer performers.
FIDELITY EMERGING MARKETS UPDATE, WITH CHAIR HEATHER MANNERS
17 DIY Investor Magazine
· August 2024
WATCH VIDEO HERE
Disclaimer: Disclosure – Non-Independent Marketing Communication
This is a non-independent marketing communication commissioned by Fidelity Emerging Markets . The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.