Fidelity Total Emerging Markets Fund (FTEMX) is managed by 16-year Fidelity veteran John H. Carlson. It offers investors exposure to both emerging markets equities and emerging market debt through a single investment. Fidelity Emerging Markets Discovery Fund (FEDDX), managed by Ashish Swarup, provides investors access to small- and mid-sized emerging market companies.
Fidelity Total Emerging Markets Fund seeks income and capital growth by investing in both equity and debt securities of emerging markets issuers. Fidelity will normally invest approximately 60% of the fund’s assets in equity securities and 40% in bonds. Fidelity may vary from this target if it believes stocks or bonds offer more favorable opportunities, but will always invest at least 20% of the fund’s assets in bonds and other debt securities.
Fidelity Emerging Markets Discovery Fund seeks capital appreciation by investing in equity securities of emerging markets issuers. Fidelity expects the fund to be more exposed to stocks that serve the local emerging market consumer and accordingly, expects the weights to traditional “consumer sectors,” such as consumer staples, consumer discretionary, and health care, to be higher than it is for traditional large cap emerging markets funds. The fund will compare its performance to the MSCI Emerging Markets Small and Mid Cap Index, which is designed to measure the performance of small and medium sized companies in emerging market countries.