Fidelity Emerging Markets passes five-year performance test
(Alliance News) - Fidelity Emerging Markets Ltd on Thursday said it has passed a five-year performance test, meaning it will not be required to launch a tender offer for its shares.
The investment company said its net asset value total return was 82.7% over the five years ended September 30, compared with 55.7% for the MSCI Emerging Markets Index.
This represented outperformance of 27 percentage points and satisfied the performance-linked tender test established in 2021.
Fidelity Emerging Markets said it intends to renew the tender mechanism for a further five-year period on materially the same terms, while aligning the calculation date with the end of its financial year.
Under the renewed mechanism, if its NAV total return does not outperform the MSCI Emerging Markets Index over the five years ending June 30, 2031, the board would propose a tender offer for up to 25% of its issued share capital, excluding treasury shares.
Chair Heather Manners said: "The board believes the performance-linked tender provides shareholders with an important measure of accountability while allowing the Manager the time required to pursue the company's long-term investment objective."
Shares in Fidelity Emerging Markets were 2.0% higher at 1,498.00 pence in London on Friday afternoon.
By Eva Castanedo, Alliance News senior economics reporter
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