EM Assets Set to Pull Ahead of Developed Peers, Funds Say
A merchant receives Brazilian real banknotes at a store in Sao Paulo.
Photographer: Tuane Fernandes/BloombergFund managers say returns on emerging-market assets are set to power ahead of their developed peers, having moved in lockstep since US President Donald Trump unleashed his tariff blitz in April.
The prospect of more Federal Reserve policy easing, a pivot away from US investments, and more conservative fiscal policies in emerging nations are likely to drive that outperformance, according to Fidelity International, T. Rowe Price and Ninety One Plc. Favorable inflation also suggests emerging markets will prosper, they said.