First State's Asia Pacific and global emerging markets team has raised concerns that loose monetary policy in OECD countries is threatening developing nations.
Fund manager Glen Finegan says money pouring into emerging markets could cause inflation to reach dangerously high levels.
"Policy makers have cut rates to zero, effectively forcing investors to look elsewhere for growth," he says.
"Europe is stagnant, America is offering selective opportunities, so the place to be for growth is emerging markets.
"It makes us nervous when we see investors piling in as that can lead to inflation."
Although First State's Asia Pacific and global emerging market funds have long held gold positions as a hedge against inflation, they are increasingly moving into companies which will benefit from an inflationary environment.
"We like companies which thrive when there is high inflation such a supermarkets," Finegan says.
"If prices are rising then so are sales. Staff will want wage increases, but that demand lags.
"On the other hand, we are avoiding utilities. In emerging markets they tend to be owned by governments who will avoid raising prices because it is unpopular."
The fear of inflation is also the reason First State is increasingly looks for investment opportunities outside the Bric markets.
"As contrarians, we try to find places which are not attracting a lot of attention," he says.
"Africa is one region which stands out. We are also finding opportunities in places such as the Philippines and Thailand.
"People say these countries are risky, but I think there is less risk in a well researched Nigerian company on eight times earnings than a Chinese company on 30 times earnings which everybody is buying."
