Hermes EM head urges challenge to consensus on rate rise impact

Gary Greenberg, head of emerging markets at Hermes, said fears over the impact of a US interest rate rise seem excessive and investors need to question the consensus.

Greenberg (pictured), who runs the £350m Hermes Global Emerging Markets fund, said the view that a rate rise would be negative for markets has been exacerbated because it is a significant consensus position. "There is a big fear of US rates rising but it is such a consensus position you have to question it. What no one is asking is how high they are going to rise." He said the impact of a potential rate rise on EMs has already been fully anticipated by the market. "The emerging markets for which a rate rise would be a problem, such as Turkey, Brazil and South Africa, are well known...