Somerset manager warns of impending EM credit crisis

While the manager, who is lead on the firm's £84m Emerging Markets Small Cap strategy, believes emerging markets could outperform over the longer term, he has warned of an impending credit event which could derail the rally. So far this year, the MSCI Emerging Markets index has enjoyed strong performance, rising 31.7% year-to-date in US dollar terms. "We have strong confidence in emerging markets over the next ten years, but we are tactically concerned about emerging market credit risk and the knock-on effect of that globally," he said. "I foresee a credit event happening which wil...