Page 11 - DIY Investor Magazine | Issue 34

We can use those powers to go short too, where we identify, those companies which are the weakest stocks most exposed to competitive threats and financial distress.
The ability to complement long investments with short positions provides additional sources of returns and is supported by our extensive global network of research analysts. Stock picking dictates the shape of the portfolio, while sector and country positions are a residual outcome of this approach.
‘THE PORTFOLIO REMAINS RESILIENT AND WELL BALANCED WITH ENDURING QUALITY CHARACTERISTICS’
LONG-TERM RESILIENCE
While this has undoubtedly been a turbulent period for emerging markets, we must acknowledge that there has always been unpredictability to the asset class.
Therefore, we place great emphasis on a prudent approach and are careful to ensure that this high conviction portfolio is balanced, and capital is allocated to companies that demonstrate quality characteristics such as healthy balance sheets and superior and sustainable profits.
While adverse headlines and sentiment have weighed heavy on financial markets, experience has taught us those fundamentals are rewarded over the longer-term and share prices follow the trajectory of earnings.
We are confident the portfolio remains resilient and well balanced with enduring quality characteristics centred around high returns, conservative balance sheets and low valuation multiples, and has the capacity to deliver attractive total shareholder returns in the long term.
Despite the undeniable short-term uncertainty, we believe the long-term case for investing in emerging markets remains strong.
The developing world is home to some of the world’s most innovative companies, a plethora of natural resources and provides access to a vast and evolving consumer base, attributes which create rich hunting ground for stock pickers.
More information about Fidelity Emerging Markets Limited here >
FIDELITY EMERGING MARKETS – MANAGING IN CHALLENGING TIMES
Important 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. Investors should note that the views expressed may no longer be current and may have already been acted upon. The shares in investment trusts are listed on the London Stock Exchange and their price is affected by supply and demand. Investment trusts can gain additional exposure to
the market, known as gearing, potentially increasing volatility. Reference to specific securities should not be interpreted as
a recommendation to buy or sell these securities and is only included for illustration purposes. 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.
The latest annual reports, key information document (KID) and fact-sheets can be obtained from our website at www.fidelity. co.uk/its or by calling 0800 41 41 10. The full prospectus may also be obtained from Fidelity. The Alternative Investment Fund Manager (AIFM) of Fidelity Investment Trusts is FIL Investment Services (UK) Limited. Issued by Financial Administration Services Limited, authorised and regulated by the Financial Conduct Authority. Fidelity, Fidelity International, the Fidelity International logo and F symbol are trademarks of FIL Limited. UKM0622/370982/ISSCSO00080/NA
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DIY Investor Magazine · July 2022