Meanwhile Dan Kemp, chief investment officer at Morningstar Investment Management, said while the team would retain its long-term, value-oriented approach and was not looking to market-time, it was, however, hoping to exploit the short-term valuation opportunity by adding to existing positioned that were already attractively valued and now looked even more so.
“Japanese equities are the obvious asset class. Japan has borne the brunt of the negative sentiment being the primary market that was open; this is the second time they have suffered through time zone.”
He said while price declines were fairly broad across Japanese markets, they would look to pick up cheap assets suffering “collateral damage” rather than try and play the US and focus on a bounce.
“That is not what we are about,” he told Portfolio Adviser.
While Morningstar does run passive-only portfolios, where the choice is available for active management, Kemp said Man GLG Japan CoreAlpha, run by Stephen Harker, was the core active equity fund holding.
“There is also an opportunity to increase our exposure to emerging market equities, which were hit hard overnight and were looking reasonably attractive beforehand,” he said.
