Skip to Content
US Videos

Despite Downgrade, Emerging-Markets Debt Fund Still Solid

Fidelity New Markets now earns a Bronze rating due to a manager change, but we still think the fund remains a solid choice.


Alfonzo Bruno: Make no mistake, the pending retirement of John Carlson at Fidelity Investments at the end of 2019 is a notable loss. After roughly 25 years of leading Fidelity New Markets Income, he will be passing the reins to comanagers John Kelly and Tim Gill, though this duo is far from inexperienced. Kelly has worked alongside Carlson and for Fidelity’s emerging-markets team for over two decades, while Gill has worked in the same capacity for just over 10 years. The duo will continue to be supported by Fidelity’s adept emerging-markets resources, as well as the firm’s bench of traders, risk specialists, and quant tools.

While material overall, the change at the helm of the strategy should have minimal impact on the investment process. The strategy’s hard-currency makeup gives the fund a slightly conservative stance compared with rivals that take on more emerging-markets currency risk. That said, the managers are willing to take on plenty of credit exposure if they think the price is right. As a result, investors have been well served as the fund has remained one of the category’s top performers over the long term.

Alfonzo Bruno does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.