Call to exit emerging markets before US rates rise
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GET out of emerging markets before the US Federal Reserve starts raising interest rates.
That's the position of Danica, the pension fund unit of Danske Bank, Denmark's biggest bank. The fund, which oversees about US$50 billion in assets, says the shift that comes once the Fed starts tightening monetary policy will overshadow every other moving piece in markets. High-returning but illiquid markets will be a bad place to be when that happens, according to Jacob Aarup-Andersen, Danica's chief financial officer.
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