Should you invest in emerging market debt?

Top managers talk to Kate Hollis, director, fund research at S&P Fund Services, about their outlook for the asset class.

Investors are turning to emerging markets to diversify their assets away from developed markets that might see years of turmoil yet. However, while the emerging markets look like a good steer in relation to their developed cousins, there are still issues and concerns that investors need to be aware of. Emerging markets funds in all asset types have been enjoying significant inflows of investor money since 2009, when they appeared to be recovering from the market shocks of the credit crunch more quickly than their developed counterparts. In the emerging markets debt sector, local currency...