Welcome to Fidelity

Select a location so we can provide you with the appropriate information

Bienvenue chez Fidelity

Veuillez sélectionner un pays afin que nous vous communiquions l'information appropriée

Willkommen bei Fidelity

Wählen Sie Ihren Standort aus, damit wir Ihnen die für Sie passenden Informationen anzeigen können.

Benvenuti in Fidelity

Seleziona un paese in modo da consentirci di fornirti le informazioni appropriate

フィデリティのウェブサイトへようこそ

適切な情報を表示するため、現在お住まいの地域を選択してください。

Important information

I confirm that I am accessing this website for the purpose of acquiring information as, or for, an Institutional Investor (a corporate or other non-retail investor acting for their own account).

By accessing the restricted area I confirm my agreement with‚ and understanding of‚ the following terms of use and the legal provisions. If I do not agree to the terms and legal conditions‚ I must not access this website or any pages thereof. I acknowledge that access to the information contained on this website is available to "Qualified Investors" only as defined below. A private individual or legal representative or any other party without this qualification should not enter this website.

By accessing this website or any of its pages‚ I confirm that I am a qualified investor in accordance with Art 10.3 CISA.

The following are considered to be qualified investors:

  • supervised financial intermediaries such as banks, securities dealers‚ management companies and asset managers of collective investment schemes‚ as well as central banks;
  • supervised insurance companies;
  • public-law bodies and occupational pension institutions with professional treasury;
  • companies with professional treasury.

I understand the information contained in this website is not directed at, nor is it intended for distribution to, or use by, persons in any jurisdiction in which the dissemination of such investment related information is not permitted. I also understand that the information contained in this site is not directed to any party that may be defined as a ‘retail investor’ by the home regulator of the country in which the website is being accessed. I understand that the information or opinions contained herein should not be construed as an offer to sell or the solicitation of an offer to buy any investment product nor shall any such investment products or services be offered or sold to any person in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful. Fidelity has expressed its own views and opinions on this website, and these may change and there is no obligation to update them. Nothing in this website should be construed as investment, tax, legal or other advice. The information contained herein is subject to change without notice.

I understand the information contained in this website is not directed at, nor is it intended for distribution to, or use by, persons in any jurisdiction in which the dissemination of such investment related information is not permitted. I also understand that the information contained in this site is not directed to any party that may be defined as a ‘retail investor’ by the home regulator of the country in which the website is being accessed. I understand that the information or opinions contained herein should not be construed as an offer to sell or the solicitation of an offer to buy any investment product nor shall any such investment products or services be offered or sold to any person in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful. Fidelity has expressed its own views and opinions on this website, and these may change and there is no obligation to update them. Nothing in this website should be construed as investment, tax, legal or other advice. The information contained herein is subject to change without notice.

This website has been issued by FIL Fund Management Limited, a Bermuda company licensed to conduct investment business by the Bermuda Monetary Authority. Neither FIL Fund Management Limited, its parent company FIL Limited, nor any of their group companies or affiliates makes or gives any warranty or representation that any information contained on this website is accurate, complete, or fit for any particular purpose.

I acknowledge that neither FIL Fund Management Limited, FIL Limited, nor any of their group companies or affiliates will have any liability for any losses arising directly or indirectly from any information accessed from this website. By accepting this representation I also confirm my agreement to the website Terms and Conditions, which I have read and understood.

Fidelity International, the Fidelity International logo and F symbol are trademarks of FIL Limited, a company existing under the laws of Bermuda.

If the above representation is correct, please click 'I agree' below to continue to the site.

Information importante

Je confirme accéder à ce site Internet afin d’obtenir des informations en qualité d’investisseur institutionnel.

Je comprends que les informations contenues sur ce site Internet sont destinées exclusivement aux investisseurs résidant en France et ne doivent pas être diffusées à quiconque pouvant être considéré comme un investisseur particulier. Je comprends que les informations ou opinions présentées sur ce site ne constituent pas des recommandations d’achat ou de vente. Fidelity a exprimé ses propres vues et opinions sur ce site Internet, et celles-ci peuvent évoluer sans que Fidelity n’assume aucune obligation de les actualiser. Aucun élément de ce site Internet ne doit être interprété comme un avis d’investissement, fiscal ou juridique ou autre. Les informations que comporte ce site peuvent changer sans notification.

Ce site Internet est présenté par FIL Gestion, SGP agréée par l'AMF sous le n°GP03-004, 29 rue de Berri, 75008 Paris. Ni FIL Gestion, ni sa société mère FIL Limited, ni aucune des sociétés ou affiliées du groupe ne garantit ni ne fait aucune déclaration sur l’exactitude, l’exhaustivité ou l’adaptation à une finalité donnée des informations présentées sur ce site Internet.

Je reconnais que ni FIL Gestion, ni FIL Limited, ni aucune des sociétés ou affiliées du groupe n’assume une quelconque responsabilité au titre de toute perte découlant directement ou indirectement de toute information obtenue à partir de ce site Internet.

Ce site présentant des informations en langues française et anglaise, j’accepte de recevoir des informations non exclusivement rédigées en français.

Je confirme également, par l’acceptation de cette déclaration, mon accord sur les conditions et modalités du site Internet que j’ai lues et comprises.

Fidelity, Fidelity International, le logo Fidelity International ainsi que le symbole F sont des marques déposées de FIL Limited.

Si vous accepter les termes de la déclaration ci-dessus, veuillez cliquer sur « j’accepte » ci-dessous pour poursuivre votre navigation sur ce site.

Wichtige Informationen

Hiermit bestätige ich, dass ich diese Website zur Informationsbeschaffung als institutioneller Anleger (ein auf eigene Rechnung handelndes Unternehmen oder ein anderer nicht als Privatanleger geltender Investor) bzw. für einen institutionellen Anleger besuche.

Mit dem Zugriff auf den zugangsbeschränkten Bereich bestätige ich, dass ich die folgenden Nutzungsbedingungen und rechtlichen Klauseln verstanden habe und mit ihnen einverstanden bin. Andernfalls darf ich auf diese Website oder Teile davon nicht zugreifen. Mir ist bewusst, dass der Zugang zu den Informationen auf dieser Website nur für „qualifizierte Anleger“ gemäss untenstehender Definition vorgesehen ist. Eine Privatperson, ein rechtlicher Vertreter oder irgendeine andere Partei ohne diese Qualifikation sollte nicht auf diese Webseite zugreifen.

Mit dem Zugriff auf diese Website oder Teile davon bestätige ich, dass ich ein qualifizierter Investor gemäß Art 10 Absatz 3 des schweizerischen Bundesgesetzes über die kollektiven Kapitalanlagen bin.

Als qualifizierte Anlegerinnen und Anleger im Sinne dieses Gesetzes gelten:

  • beaufsichtigte Finanzintermediäre wie Banken, Effektenhändler, Fondsleitungen und Vermögensverwalter kollektiver Kapitalanlagen sowie Zentralbanken;
  • beaufsichtigte Versicherungseinrichtungen;
  • öffentlich-rechtliche Körperschaften und Vorsorgeeinrichtungen mit professioneller Tresorerie;
  • Unternehmen mit professioneller Tresorerie.

Mir ist bewusst, dass sich die Informationen auf dieser Website nicht an Personen richten bzw. für sie bestimmt sind, in deren Land die Verbreitung solcher anlagebezogenen Informationen nicht erlaubt ist. Mir ist bewusst, dass die hier zu findenden Informationen oder Meinungen nicht als Aufforderung zum Kauf oder Verkauf eines Anlageprodukts zu verstehen sind. Es sollen auch keine solchen Anlageprodukte oder Dienstleistungen Personen angeboten oder verkauft werden, in deren Land ein entsprechendes Angebot, eine Aufforderung, ein Erwerb oder Verkauf ungesetzlich wäre. Fidelity äußert auf dieser Website seine eigenen Ansichten und Meinungen, die sich jederzeit ändern können, ohne dass eine Verpflichtung zur Aktualisierung besteht. Kein Inhalt dieser Website ist als Beratung in Bezug auf Geldanlagen, Steuern, rechtliche oder sonstige Aspekte zu verstehen. Die hierin enthaltenen Informationen können sich ohne entsprechende Mitteilung jederzeit ändern.

Mir ist bewusst, dass sich die Informationen auf dieser Website nicht an Personen richten bzw. für sie bestimmt sind, in deren Land die Verbreitung solcher anlagebezogenen Informationen nicht erlaubt ist. Mir ist ebenfalls bewusst, dass sich die Informationen auf dieser Website nicht an Adressaten richtet, die von der Aufsichtsbehörde in dem Land, von dem aus die Website besucht wird, möglicherweise als „Privatanleger“ klassifiziert werden. Des Weiteren ist mir bewusst, dass die hier zu findenden Informationen oder Meinungen nicht als Aufforderung zum Kauf oder Verkauf eines Anlageprodukts zu verstehen sind. Es sollen auch keine solchen Anlageprodukte oder Dienstleistungen Personen angeboten oder verkauft werden, in deren Land ein entsprechendes Angebot, eine Aufforderung, ein Erwerb oder Verkauf ungesetzlich wäre. Fidelity äußert auf dieser Website seine eigenen Ansichten und Meinungen, die sich jederzeit ändern können, ohne dass eine Verpflichtung zur Aktualisierung besteht. Kein Inhalt dieser Website ist als Beratung in Bezug auf Geldanlagen, Steuern, rechtliche oder sonstige Aspekte zu verstehen. Die hierin enthaltenen Informationen können sich ohne entsprechende Mitteilung jederzeit ändern.

Diese Website wurde von FIL Fund Management Limited eingerichtet, einem Unternehmen mit Sitz auf bzw. nach dem Recht der Bermuda-Inseln, das über eine Genehmigung der Bermuda Monetary Authority zur Ausübung von Investmenttätigkeiten verfügt. Weder FIL Fund Management Limited noch sein Mutterunternehmen FIL Limited oder irgendein anderes Konzernunternehmen oder verbundenes Unternehmen übernimmt die Gewähr dafür oder erklärt, dass die Informationen auf dieser Website zutreffend, vollständig oder für jedwede Zwecke geeignet sind.

Ich erkenne an, dass weder FIL Fund Management Limited noch FIL Limited oder ein anderes Konzernunternehmen bzw. verbundenes Unternehmen für etwaige Verluste haftet, die direkt oder indirekt aus einer auf dieser Website beschafften Information resultieren. Durch Annahme dieser Erklärung bestätige ich auch mein Einverständnis mit den Nutzungs- und Geschäftsbedingungen dieser Website, die ich gelesen und verstanden habe.

Fidelity International, das Fidelity International Logo und das F-Symbol sind Markenzeichen von FIL Limited, einem nach dem Recht der Bermuda-Inseln eingetragenen Unternehmen.

Diese Website präsentiert Informationen in englischer und deutscher Sprache. Als professioneller Anleger akzeptiere ich hiermit, Informationen in mehr als einer Sprache zu erhalten.

Wenn die obige Erklärung zutrifft, klicken Sie bitte auf „Ich stimme zu“, um auf die Website zu gelangen.

Informazioni importanti

Confermo di voler accedere a questo sito web per acquisire informazioni in veste o per conto di un Investitore istituzionale (una società o altro investitore non retail che agisce per proprio conto).

Riconosco che le informazioni contenute in questo sito web non sono dirette né sono destinate alla distribuzione o alluso da parte di soggetti in qualsiasi giurisdizione in cui la diffusione di tali informazioni relative allinvestimento non è consentita. Riconosco inoltre che le informazioni contenute in questo sito web non sono dirette a soggetti che potrebbero essere definiti "investitori retail" dall'autorità di vigilanza nazionale del paese dal quale si accede al sito stesso. Riconosco che le informazioni o le opinioni contenute in questo sito web non devono essere interpretate come un'offerta di vendita o come la sollecitazione di un'offerta di acquisto di un prodotto o un servizio di investimento, né tali prodotti o servizi di investimento possono essere offerti o venduti a soggetti di giurisdizioni nelle quali tale offerta, sollecitazione, acquisto o vendita sarebbero illegali. Questo sito web contiene giudizi e opinioni espressi da Fidelity, che sono soggetti a modifica e rispetto ai quali non sussiste alcun obbligo di aggiornamento. Nulla di quanto contenuto in questo sito web va considerato come una consulenza di investimento, fiscale, legale o di altra natura. Le informazioni qui riportate sono soggette a modifica senza preavviso.

Questo sito web è pubblicato da FIL Fund Management Limited (una società delle Bermuda autorizzata a svolgere attività d'investimento dalla Bermuda Monetary Authority). Né FIL Fund Management Limited, né la sua società madre FIL Limited, né alcuna delle loro società del gruppo o affiliate fornisce o rilascia alcuna garanzia o dichiarazione che le informazioni contenute in questo sito web siano accurate, complete o adatte a uno scopo particolare.

Riconosco che né FIL Fund Management Limited, né FIL Limited né alcuna delle loro società del gruppo o affiliate si assumono alcuna responsabilità per eventuali perdite derivanti direttamente o indirettamente da informazioni ottenute da questo sito web. Accettando questa dichiarazione confermo anche di aver letto, compreso e accettato i Termini e le condizioni d'uso del sito web.

Fidelity International, il logo Fidelity International e il simbolo F sono marchi di proprietà di FIL Limited, una società costituita nelle Bermuda.

Se la dichiarazione di cui sopra è corretta, cliccare "Accetto" qui sotto per continuare a visitare il sito.

重要な情報

私は、機関投資家(自己勘定取引を行う個人投資家以外の法人その他の投資家)として、あるいはかかる機関投資家のために、当ウェブサイトにアクセスし、情報を取得するものです。

私は、当ウェブサイトに掲載される情報は、かかる投資関連情報の流布が違反となる法域の人物に提供するものではなく、そういった人物によって拡散されたり利用されたりすることを意図したものでもないことを理解しています。また、当サイトに掲載される情報が、ウェブサイトにアクセスする場所の国の規制当局によって「個人投資家」と定義され得る人物に向けたものではなく、当サイトにある情報または意見は、何らかの投資商品の勧誘や募集と解釈すべきではなく、かかる投資商品またはサービスの募集、勧誘、売買が違法となる法域にいる人物に対して募集ないし販売されるものでもないことも理解しています。フィデリティは、当ウェブサイト上に自社の見解や意見を掲載していますが、これらは変わる可能性があり、そういった変更があった場合に当ウェブサイトを更新しなければならないという義務は負っていません。当ウェブサイトの内容はいずれも投資、税務、法務、その他の助言と解釈すべきではなく、ウェブサイト上の情報は通知なく変更される可能性があります。

当ウェブサイトはバミューダ籍の法人でバミューダ金融庁から投資事業免許を取得しているFILファンド・マネジメント・リミテッドが作成しています。FILファンド・マネジメント・リミテッド、その親会社であるFILリミテッド、またはそれらのグループ会社か関連会社のいずれも、当ウェブサイトに掲載される情報が正確であるとか、完全であるとか、特定の目的に適合したものである等の保証や表明は行っておらず、そういった保証や表明を提供することもありません。

FILファンド・マネジメント・リミテッド、FILリミテッド、またはそれらのグループ会社か関連会社のいずれもが、当ウェブサイトから入手した情報によって直接または間接的に発生した損失の責を負うものではないことに了承します。

フィデリティ・インターナショナル、フィデリティ・インターナショナルのロゴおよびFのシンボルはバミューダ法の下で設立された法人であるFILリミテッドの商標です。

以上をご確認いただける場合には、以下の「同意します」ボタンをクリックしてください。

Revisiting the 'Fragile Five' at five

Five years since they were dubbed the 'Fragile Five', the emerging market economies of Brazil, India, Indonesia, South Africa and Turkey are looking more robust.

von Eric Wong und Kyle DeDionisio

26 Juli 2018, 13:17 GMT

A rickshaw puller in Kolkata, India passes a mural depicting Brazilian football players. The 'Fragile Five' emerging markets economies of Brazil, India, Indonesia, South Africa and Turkey appear on firmer footing than five years ago. REUTERS/Rupak De Chowdhuri
A rickshaw puller in Kolkata, India passes a mural depicting Brazilian football players. The 'Fragile Five' emerging markets economies of Brazil, India, Indonesia, South Africa and Turkey appear on firmer footing than five years ago. REUTERS/Rupak De Chowdhuri

In August 2013, a handful of emerging market countries - Brazil, India, Indonesia, South Africa, and Turkey - were dubbed the “Fragile Five” by a Morgan Stanley analyst.

The term gained traction: following several years of high growth and attractive returns for investors, these five countries had been singled out as having a particular weakness that was expected to be exposed in the ensuing years, or so the thinking went. They were criticised as having become overly reliant on foreign capital to fuel their high-growth economies and, in some cases, mitigate sizeable current account deficits. Historically, changes in sentiment had prompted substantial outflows from emerging markets, and the thinking back in 2013 was that these five countries would prove to be particularly vulnerable to any such episode.

In the years since, each country in the group experienced varying degrees of progress and setbacks. Some met with considerable economic challenges (in certain cases these challenges were self-imposed). And recent months have seen some renewed pressure on EMs. However, five years on, these five countries do not look quite so fragile anymore.

Below, we check in on each of the five: how their markets and certain high level indicators performed in the past several years, what ultimately proved to be the dominant trend (spoiler alert: it wasn’t capital flows), and what we are watching most closely now.

Brazil

..
Source: Bloomberg, Fidelity International, July 2018.

Weak meat and clean cars: the last five years in Brazil

Following a period of optimism surrounding new, credible policy makers and clear fiscal targets, the Brazilian economy became embroiled in a couple of widespread corruption scandals. Operation “Car Wash” (Lava Jato, beginning in 2014) and Operation “Weak Meat” (Carne Fraca, in 2017) extended from the oil and gas and meat processing industries into the highest levels of government in the country and led to hundreds of arrests and indictments. Foreign debt ownership dropped in Brazil as many investors fled a troubled situation. While those outflows weighed on the economy, its essential issues have been sourced from within the country, not outside it.

Brazil’s fixed income price returns

..

Past performance is not a reliable indicator of future results

Note: USD Sovereign refers to the J.P. Morgan EMBI Global Diversified Brazil Index. USD Corporate refers to the J.P. Morgan Corporate EMBI Broad Diversified Brazil Index. Local Currency Sovereign refers to the J.P. Morgan GBI-EM Broad Brazil LOC Unhedged Index.
Source: Bloomberg, Fidelity International, July 2018.

What we are watching now in Brazil

Disappointing growth, a worsening fiscal situation, historically low interest rates, and plenty of political uncertainty heading into this year’s general election give many would-be investors pause. While we do not see a lot of value in Brazil’s sovereign debt, there is some to be found among corporate issues. As is often the case, markets can categorically sell-off together, and we have seen good value emerge in a number of corporates the market looks to have oversold or in exporters that stand to benefit from the ongoing currency weakness.

India

..
Source: Bloomberg, Fidelity International, July 2018.

Demonetization, GST and a bank recap: the last five years in India

India spent time over the last few years trading some short-term pain for longer-term gains. Prime Minister Narendra Modi made notable advancements in his reform agenda in the way of a goods and services tax, demonetisation, and a bank recapitalisation program. Each one weighed on the economy to differing degrees, at different times, but the prospects of an improved fiscal base, a modernised (and less prone to corruption) monetary system, and a more fundamentally sound banking system should benefit the country for years. Local market participation by foreigners is still artificially low, given strict regulations. Reflecting this low participation, equity flows remain somewhat volatile - but they have not done much to curb India from any of its advancements.

India’s fixed income price returns

..

Past performance is not a reliable indicator of future results

Note: USD Sovereign refers to the J.P. Morgan EMBI Global Diversified India Index. USD Corporate refers to the J.P. Morgan Corporate EMBI Broad Diversified India Index. Local Currency Sovereign refers to the J.P. Morgan GBI-EM India Unhedged LOC Index.
Source: Bloomberg, Fidelity International, July 2018.

What we are watching now in India

India has made good strides on improving both its current account and fiscal deficits. Headwinds introduced by demonetisation, especially, have proved relatively short-lived. Relative to peer countries, India looks less exposed to potential intensified trade wars or a slowdown in China. Despite looking fundamentally sound with promising prospects, we do not find many attractive investment opportunities at present given comparatively rich valuations.

Indonesia

..
Source: Bloomberg, Fidelity International, July 2018.

Ratings upgrades and narrowing deficits: the last five years in Indonesia

Relatively high yields and one of the most positive reform stories across EM proved to be alluring invitations for capital as EM recovered following 2013’s Taper Tantrum. While the reform agenda of President Joko Widodo, better known as Jokowi, stalled and disappointed at times, the country still made strides, improving its current account deficit and increasing dollar reserves. Ultimately those improvements were recognised by the three major ratings agencies, each of which upgraded the country’s foreign debt over the last couple years. And, with S&P’s upgrade in May 2017, the country was moved back firmly into investment grade territory.

Indonesia’s fixed income price returns

..

Past performance is not a reliable indicator of future results

Note: USD Sovereign refers to the J.P. Morgan EMBI Global Diversified Indonesia Index. USD Corporate refers to the J.P. Morgan Corporate Broad EMBI Diversified Indonesia Index. Local Currency Sovereign refers to the J.P. Morgan GBI-EM Indonesia Unhedged LOC Index.
Source: Bloomberg, Fidelity International, July 2018.

What we are watching now in Indonesia

Indonesia is not facing any large balance of payments or fiscal issues. While growth slightly disappointed earlier this year, the country is not far from potential and should see a rebound and remain relatively robust. Inflation is likely to slowly rise given currency weakness and higher oil prices but still remain contained. The country needs infrastructure improvements, and while they are a major part of President Jokowi’s reform agenda, spending has often disappointed in recent years. That should improve after the 2019 elections though, unleashing capital and spurring additional growth. Indonesia still benefits from favourable demographics, improving wages, good growth potential, and likely future ratings upgrades. A lot of this is already priced in assets, though, so investors need to be wary of variations before boldly investing capital.

South Africa

..
Source: Bloomberg, Fidelity International, July 2018.

Credit downgrades and a mixed picture: the last five years in South Africa

At a glance, it appears South Africa - like many emerging market countries - has improved its fundamental position. The country still runs twin deficits but has notably improved its current account deficit and slightly improved its fiscal account deficit over the last five years. However, a look at the more recent past offers a different take. Growth has notably disappointed, the fiscal deficit has actually grown over the last 1-2 years, and politics were a particular source of strain. Corrupt political processes, increasingly exposed, made many question whether former President Jacob Zuma valued political power more than the economic prospects of the nation. Ratings agencies took notice of the deterioration in the country. Both S&P and Fitch downgraded the country to high yield in 2017. Moody’s downgraded the country in 2018 and now has South Africa only one notch above joining the other two agencies with a high yield stamp. The election of Cyril Ramaphosa in late 2017 to succeed Zuma restored a lot of optimism in a country that was running short.

South Africa’s fixed income price returns

..

Past performance is not a reliable indicator of future results

Note: USD Sovereign refers to the J.P. Morgan EMBI Global Diversified South Africa Index. USD Corporate refers to the J.P. Morgan Corporate Broad EMBI Diversified South Africa Index. Local Currency Sovereign refers to the J.P. Morgan GBI South Africa Unhedged LOC Index.
Source: Bloomberg, Fidelity International, July 2018.

What we are watching now in South Africa

A change in presidential leadership was warmly welcomed by the market but may be passing its honeymoon period. Real growth is still expected to increase over the next couple of years but momentum seems to be slowing on some reforms. Long-standing structural challenges -- namely high unemployment and economic inequalities -- linger, and the pace of growth and reforms are unlikely to materially change these. Policy makers appear committed to fiscal consolidation, but downside risks remain. We see a lot more value in the local currency debt space where yields are well above policy rates and inflation, but currency moves need to be monitored carefully.

Turkey

..
Source: Bloomberg, Fidelity International, July 2018.

Downgrades add to setbacks: the last five years in Turkey

Turkey has long run twin deficits. Its current account balance actually steadily improved from 2013 to 2017 before rapidly deteriorating and reaching levels last seen in early 2014, erasing all of the multi-year progress. External indebtedness and concerns about the central bank’s independence remain long-standing issues, while politics prominently featured. President Recep Tayyip Erdogan took steps to increase his own presidential powers (bringing the country back toward authoritarian rule) over the last several years, and a failed coup in July 2016 that preceded the detention, suspension, or purge of tens of thousands of government sector workers, soldiers, judges, and private businesses exposed a level of political risk not fully accounted for previously. S&P had long rated Turkey as sub-investment grade, and by early 2017, Moody’s and Fitch concurred, downgrading sovereign debt to high yield.

Turkey’s fixed income price returns

..

Past performance is not a reliable indicator of future results

Note: USD Sovereign refers to the J.P. Morgan EMBI Global Diversified Turkey Index. USD Corporate refers to the J.P. Morgan Corporate Broad EMBI Diversified Turkey Index. Local Currency Sovereign refers to the J.P. Morgan GBI-EM Turkey LOC Unhedged Index.
Source: Bloomberg, Fidelity International, July 2018.

After a history of heterodox policy making, the central bank is earning back credibility by acting swiftly and decisively hiking rates to curb rising inflation. President Erdogan’s most recent consolidation of power is likely a longer-term negative for the country but offers some short-term stability, which markets often appreciate. Recent sovereign downgrades have dragged down most names in the country, but there is still value to be found. Select corporates operate in growing sectors with good market share and the ability to pass inflation on to consumers. Discerning investors who can withstand near-to-medium term volatility might find good value in some Turkish corporates.

Conclusion: No longer so fragile at five

Collectively, Brazil, India, Indonesia, Turkey, and South Africa have exhibited more resilience than fragility over the last five years. The major strains we have seen have largely been internal and political in nature, as opposed to driven by foreign investor sentiment and capital flows. Of the five, Turkey looks to be in the most precarious position right now, but markets have priced this in. If we are not there already, we are close to risks in Turkey being skewed to the upside given valuations. The government and policy makers demand close attention from potential investors, but across the emerging landscape economies are generally stronger than they were five years ago.

Important Information

The value of investments and the income from them can go down as well as up so you may get back less than you invest. Past performance is not a reliable indicator of future results.

These materials are provided for information purposes only and are intended only for the person or entity to which it is sent.

These materials do not constitute a distribution, an offer or solicitation to engage the investment management services of Fidelity, or an offer to buy or sell or the solicitation of any offer to buy or sell any securities or investment product. Fidelity makes no representations that the contents are appropriate for use in all locations or that the transactions or services discussed are available or appropriate for sale or use in all jurisdictions or countries or by all investors or counterparties.

Investors should also note that the views expressed may no longer be current and may have already been acted upon by Fidelity. They are valid only as of the date indicated and are subject to change without notice.

This material was created by Fidelity International. It must not be reproduced or circulated to any other party without prior permission of Fidelity.

This communication is not directed at, and must not be acted on by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised for distribution or where no such authorisation is required. Fidelity is not authorised to manage or distribute investment funds or products in, or to provide investment management or advisory services to persons resident in, mainland China. All persons and entities accessing the information do so on their own initiative and are responsible for compliance with applicable local laws and regulations and should consult their professional advisers.

This content may contain materials from third-parties which are supplied by companies that are not affiliated with any Fidelity entity (Third-Party Content). Fidelity has not been involved in the preparation, adoption or editing of such third-party materials and does not explicitly or implicitly endorse or approve such content.

Fidelity International refers to the group of companies which form the global investment management organisation that provides products and services in designated jurisdictions outside of North America Fidelity, Fidelity International, the Fidelity International logo and F symbol are trademarks of FIL Limited. Fidelity only offers information on products and services and does not provide investment advice personal recommendations based on individual circumstances.

Issued in Europe: Issued by FIL Investments International (FCA registered number 122170) a firm authorised and regulated by the Financial Conduct Authority, FIL (Luxembourg) S.A., authorised and supervised by the CSSF (Commission de Surveillance du Secteur Financier) and FIL Investment Switzerland AG, authorised and supervised by the Swiss Financial Market Supervisory Authority FINMA. For German wholesale clients issued by FIL Investment Services GmbH, Kastanienhöhe 1, 61476 Kronberg im Taunus. For German institutional clients issued by FIL Investments International – Niederlassung Frankfurt.

In Hong Kong, this content is issued by FIL Investment Management (Hong Kong) Limited and it has not been reviewed by the Securities and Future Commission. FIL Investment Management (Singapore) Limited (Co. Reg. No: 199006300E) is the legal representative of Fidelity International in Singapore. FIL Asset Management (Korea) Limited is the legal representative of Fidelity International in Korea. In Taiwan, independently operated by FIL Securities (Taiwan ) Limited, 11F, 68 Zhongxiao East Road., Section 5, Xinyi Dist., Taipei City, Taiwan 11065, R.O.C. Customer Service Number: 0800-00-9911#2

Issued in Australia by Fidelity Responsible Entity (Australia) Limited ABN 33 148 059 009, AFSL No. 409340 (“Fidelity Australia”). This material has not been prepared specifically for Australian investors and may contain information which is not prepared in accordance with Australian law.

IC18-162