Although a US interest rate rise has historically had a negative impact on emerging market debt, investors are overlooking areas of the market that could benefit.

That is according to Fraser Lundie, co-head of credit at Hermes and manager of several funds. He said that while flows into emerging market credit had increased, it remained an under-owned sector.  

In this video, Lundie also discusses the opportunities that a divergence in monetary policy is offering investors and explains his current positioning.