Fidelity International optimistic about emerging market assets next year, says large-scale capital has yet to enter

Jinse Finance reported that Fidelity International stated that if 2025 already seems to be a strong year for emerging markets, then 2026 will be even more exciting. Mike Riddell, portfolio manager of the Fidelity Strategic Bond Fund, said that US interest rate cuts have increased the attractiveness of assets in emerging economies with higher rates and further room for local currency appreciation. "Although the market has been talking about emerging market trades all year, large-scale capital has yet to enter," Riddell said. "This sets the stage for 2026, when we believe allocations to emerging market debt could increase significantly." Riddell noted that the weakening of the US dollar is a "structural change that is only just beginning to take effect."