AsianFin -- Emerging-market assets are expected to outpace their developed-world counterparts in the year ahead, fund managers say, citing a mix of looser Federal Reserve policy, shifting capital flows, and more disciplined fiscal policies in developing nations.

Since U.S. President Donald Trump’s tariff campaign in April, emerging and developed assets have largely moved in sync. But investors including Fidelity International, T. Rowe Price, and Ninety One Plc now expect a divergence in favor of emerging markets, supported by relatively favorable inflation dynamics.

The MSCI Emerging Markets Index is projected to climb about 15% over the next 12 months, compared with roughly 10% for the developed-markets benchmark, according to analyst forecasts. Flows into emerging-market equities are also accelerating, outpacing those into developed peers through some of the world’s largest exchange-traded funds.