Fidelity International is optimistic about the performance of emerging market assets next year, stating that large-scale capital has yet to enter the market.

According to Jinse Finance, 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 appeal of assets in emerging economies with higher rates and currencies that still have room to appreciate. “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’s only just beginning to take effect.”