The Luxembourg-domiciled fund will invest in local currency bonds in Russia, Mexico, Poland and South Africa, among others.
It will be managed by Steve Ellis and Eric Wong, who are also at the helm of the recently launched Emerging Market Corporate Debt, the Emerging Market Debt, and the Emerging Market Inflation-Linked Bond Funds.
Fidelity has also added a trio of multi-asset open funds to its range in recent weeks.
Steve Ellis said: “The super secular growth story of emerging markets has a long way to go. The continued development of local EM markets has taken hold. This dynamic will look to persist for the foreseeable future.
“The current EM local currency universe presents an increasingly improving and well-balanced investment grade opportunity set. There is a broad and well diversified regional and country exposure.”
The fund will be benchmarked against the JP Morgan Global Bond Index – EM Global Diversified Index. The graph shows the performance of the US dollar, which hard currency EMD is linked to, over one year in comparison to this index.
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