The active exchange-traded fund (ETF) market has continued its impressive growth in 2024, and is likely to continue to grow rapidly over the coming year.
– The ETF market continues its meteoric growth, with active ETFs’ market share rising as asset allocators look beyond passive funds towards research-led solutions that can supplement returns and help manage idiosyncratic investment risks.
– Our active ETFs represent the next generation of portfolio building blocks fo...

Investors would do well to counterbalance their public holdings by increasing exposure to private investments.
Top convictions for 2025
– Private equity is still the largest raising asset class, and given how quiet the IPO markets have been we believe mid-market provides the best risk-return options
– Infrastructure is likely to provide more opportunities as growth in digital infrastructure and renewable energy assets is supported by th...

We are positive on risk assets despite being later in the cycle.
Top convictions for 2025
– For the tactical asset allocator: US mid-caps offer a way to capitalise on the country’s positive earnings momentum while avoiding the higher valuations of the market’s biggest names
– For the income investor: Easing policy and high yields are good news for carry trades. But, given risks posed by US fiscal inflation, we are looking to non-US duration, CLOs, and sho...

After navigating an interest rate hiking cycle, fixed income investors face a completely different challenge in 2025.
Top convictions for 2025
– Defensive US dollar investment grade – to shelter from recession risks.
– Global short duration income – to lock in decent all-in yields.
– Asian high yield – to capture attractive carry and spreads compression.
A dominant theme for fixed income markets in 2025 will be where US interest rates find themselves a...

A decisive US election, political ructions in Europe, and the first signs of Chinese fiscal action spell more volatility for stock markets in 2025. And new roads to returns.
Top convictions for 2025
– US stocks will outperform the rest of the developed world on earnings
– Japanese shares are still a strong bet as reforms improve returns
– Nerves over valuations make the case for income
Pound for pound, macro and monetary policy should deliver a positive environment for ...

A material shift in politics makes reflation of the US economy our base case for 2025.
A resounding victory for the Republicans in November’s election has shifted the economic outlook for 2025 meaningfully. The US soft-landing scenario that we confidently held as our base case for most of 2024 should give way to reflation as we move deeper into 2025, but an economy whose exceptional growth propped up the rest of the world in recent years may also now turn inward a...

The year ahead promises a different environment for financial investors, but it is clear earnings in many areas will improve and the global mood is positive.
There is an inevitable divergence, J William Fulbright noted at the height of the Cold War, between the world as it is, and the world as man perceives it. For a long time over the past couple of decades, most of us at least agreed on the direction of travel. That is no longer the case. But the resulting divergence in...

In this month’s issue of Fidelity Focus, Client Portfolio Manager Christopher Wong explores what’s next for markets following Trump’s election win, why we believe small-mid cap stocks are an attractive opportunity amidst a red sweep, and the potential impact of higher tariffs on Asia.

Dan Roberts
As the market absorbs the US election result our team will be watching closely how policy changes of the new administration are likely to impact both US and non-US companies over the coming months.
However, our approach remains consistent: building, from the bottom up, a strategy of high quality, cash generative, resilient businesses with enduring competitive advantages whose outlook is driven predominantly from within. Our investment cas...

Hyun Ho Sohn
The tech industry is reliant on global trade. There are cross-border operations across many tech segments and the implications of any high tariff policy to encourage US reshoring and reduce dependence on overseas supply chains are something to be mindful of. However, given that many tech hardware companies have been gradually moving their operations outside of China in recent years, this could have limited impact and there is potential...