Fidelity’s Global CIOs debate the outlook for financial markets as we enter the final quarter of 2021. They highlight the key factors we are watching, with a focus on inflation, central bank policy moves and the evolving regulatory environment in China.

While lower for longer was the mantra of the last decade, there is a new catchphrase in town - higher for longer. As income-seeking investors adjust to this new environment, our fixed income investment team outline why the high-quality class looks well placed to command increased allocations and deliver relatively attractive risk-adjusted returns.

Property developer China Evergrande Group’s debt problems have rattled global financial markets. But Fidelity’s Asia Pacific CIO Paras Anand believes comparisons likening this to a ‘Lehman moment’ for China appear overstated, with the Chinese authorities focused on managing long-term economic and societal risks.

After years of political turbulence which have caused innumerable headaches for UK equity investors, the UK now seems to be in the early stages of a calmer period, which could see it regaining some of its past reputation as a well-run advanced economy. Against this backdrop, Fidelity UK Select Fund portfolio manager Aruna Karunathilake reviews the market environment and outlines why he is feeling increasingly optimistic on the outlook for UK equities.

UK fixed income portfolio managers Sajiv Vaid and Kris Atkinson review the opportunity set in corporate credit - and highlight why fixed income investors should be cautious of underweighting duration and reaching for yield in the current environment.

Fidelity Global Head of Stewardship and Sustainable Investing Jenn-Hui Tan sat down with some of our investment colleagues based in Hong Kong, to discuss the state of play when it comes to ESG investing in Asia. They examine how the region is getting to grips with ESG, including adoption and regulation and share how Fidelity is using research and engagement to effect companies.

While the UK market has looked cheap for some time, the key difference in 2021 is that fundamentals are now improving. Jonathan Winton, lead portfolio manager of Fidelity UK Smaller Companies and co-portfolio manager of Fidelity Special Situations & Fidelity Special Values PLC, discusses how this backdrop is driving a spate of M&A bids which could act as effective catalysts to close long-standing valuation discounts.

Generative artificial intelligence is the hot technology of the moment. It has the potential to be transformative, but as with other recent technologies - electric vehicles, renewable energy, blockchain - valuations can become detached from fundamentals. Equity research analyst Jonathan Tseng provides an overview of the technology, its risks and where we see investment potential.

Sam Morse and Marcel Stötzel, portfolio managers of the Fidelity European Fund and Fidelity European Trust PLC, review the outlook for continental European equity markets. Following a period of strong returns, they discuss why a focus on attractively valued dividend paying stocks is well placed to navigate a backdrop where aggregate valuations are starting to look stretched.

As large developed markets wrestle with recession concerns, many emerging market countries find themselves relatively well positioned with healthier finances and proactive central banks. Portfolio manager Amit Goel discusses some of the key areas of opportunity across this diverse universe and highlights how this is shaping positioning of the Fidelity Sustainable Emerging Markets Equity Fund.

Utilising Fidelity’s Sustainability Ratings, we recently analysed the relationship between sustainability and dividend payments to shareholders. Investment Director Matthew Jennings reveals the key findings, outlining why ESG leaders are more likely to deliver sustainable dividend growth across a range of conditions.

Inflationary pressures look to be showing signs of finally easing, but history shows that it can be a very challenging beast to tame. With the risk of us entering a period of sustained high inflation still real, Multi Asset portfolio manager Ian Samson outlines six ways investors can position for a higher for longer inflation environment.

Fixed income markets have been sending a notably more bearish signal than global equities over recent months. Fidelity discuss how this tug of war is likely to play out from here and outline the importance of focusing on the three “Ds” - due diligence, discipline and diversification - when it comes to credit selection in the current environment.

Following a bumpy first half of 2023, portfolio manager Nick Price provides an update on Fidelity’s Emerging Markets strategy. He reviews the current challenges and opportunities facing investors, highlighting where he sees pockets of investment potential across this diverse universe.

We have seen a number of significant regulatory developments in China over the last few months, with an extensive overhaul of the education sector the most recent example. Against a backdrop of heightened market volatility, Fidelity’s locally-based portfolio managers outline their latest views on the evolving regulatory landscape and what it means for their portfolios.

How orderly will the global net zero transition ultimately turn out to be? Our Global Macro & Strategic Asset Allocation Team assess the latest progress we are seeing and outline why policy shifts - catalysed by the energy crisis - have the potential to speed up progress towards net zero goals.

A new economic order is unfolding, with emerging markets - particularly Asia - leading the way. With this in mind, Paras Anand, Fidelity’s CIO Asia Pacific, takes a closer look at the growth dynamics across the region. He highlights how this underpins the case for Asia playing an increasingly prominent role at the core of any well-diversified investment portfolio.

Fidelity Multi Asset Income range portfolio manager Eugene Philalithis provides an update on the strategy. He discusses key performance drivers over recent months and outlines the key areas of risk and opportunity for income investors in today’s uncertain macro backdrop.