Fidelity International is optimistic about the trend of emerging market assets next year, saying that large-scale funds have not yet entered the market

If 2025 already looks like a strong year for emerging markets, 2026 could be even better, according to Fidelity International. Mike Riddell, portfolio manager at Fidelity's Strategic Bond Fund, said US interest rate cuts had boosted the attractiveness of emerging economy assets with higher interest rates and still room for currency appreciation. "While the market has been talking about emerging market deals all year, the big money has yet to come in," Riddell said. "This sets the stage for 2026, when we think allocation to emerging market debt is likely to increase significantly." Riddell said the dollar's weakness was a "structural change that is just beginning to take effect".