The mood across emerging markets has shifted with surprising speed. After years of languishing under a strong dollar and tight global liquidity, capital is beginning to move with renewed purpose.
The shift is being underpinned by tangible macro dynamics. A weaker U.S. dollar, coupled with expectations of policy easing in major economies, is creating breathing room for developing markets. Many of their central banks had already tightened policy earlier and are now positioned to support growth without igniting inflation.
Flows into emerging market equity and bond funds have strengthened, suggesting conviction rather than short-term positioning. The renewed interest is particularly visible in local currency debt and diversified regional ETFs, where allocations have climbed steadily.
Fidelity Emerging Markets Limited (LON:FEML) is an investment trust that aims to achieve long-term capital growth from an actively managed portfolio made up primarily of securities and financial instruments providing exposure to emerging markets companies, both listed and unlisted.
