Emerging market debt comes top of the class in Q1

Emerging market debt has managed to outperform almost every other asset class in the first quarter of the year and the future looks bright. Increasing sophistication of emerging markets investors means volatility is reducing, while performance remains good, according to Abigail McKenna, who runs several Morgan Stanley emerging markets debt programmes, including a Sicav. Her Sicav is long-only and invests primarily in the hard-currency denominated government bonds of around 30-35 countries. McKenna claims that, due to the inefficiencies in the market, emerging fund managers have on a...