Fidelity Emerging Markets (FEML) has confirmed it will not be holding a 25% tender offer after beating the MSCI Emerging Markets index in the five years to 30 September with an 82.7% total investment return versus the benchmark’s 55.7%. The £559m investment company managed by Fidelity’s Nick Price and Chris Tennant said it intended to renew the performance-linked tender for the five years to 30 June 2031, aligning it with its financial year-end.
QuotedData senior analyst David Batchelor said: “FEML has cleared this hurdle comfortably, marking a considerable turnaround from Fidelity’s difficult start following its appointment in 2021, when Russian exposure proved particularly damaging. A five-year NAV total return of 82.7%, against the benchmark’s 55.7%, provides a much stronger case for retaining the managers than simply scraping past the tender threshold. It also demonstrates the value of allowing time for an investment approach to work. However, the credit is shared: alongside the portfolio’s recovery, buying back shares below NAV has enhanced returns for continuing shareholders, notably through last year’s negotiated purchase of Strathclyde’s holding.
“The intention to renew the performance-linked tender is welcome. The proposed test retains a meaningful consequence for underperformance, with a tender for up to 25% of the shares if NAV returns fail to beat the index over the five years ending June 2031.”
JPMorgan Global Core Real Assets (JARA) says its main market listing was cancelled at 8am today following the voluntary liquidation of the company on 27 August.
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