Managers Say Japanese Sell-Off is Overdone

FUND TIMES: Numerous fund managers this week commented on the short-term investment impact of the disaster in Japan; plus new fund launches and closures

Holly Cook 18 March, 2011 | 5:12PM
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Managers Move to Reassure Over Economic and Market Impact of Japan’s Disaster
A large group of successful fund managers from around the globe says the sharp decline in Japanese equities over the past week is overdone.

In short, though they all recognise the devastation and suffering caused by the quake and tsunami, these managers say investors are confusing the tragic human cost of the disaster with the true long-term economic cost to Japanese companies. While short-term volatility is likely, the tragedy and global stock market sell-off in recent days won't affect the long-term value of global equities, the managers say.

Commenting on the crisis, Steve Seneque, Head of Japanese Equities at Fidelity International, said in this type of environment investors' courage is most severely tested. “While it is up to the individual investor to decide what to do, all investors should approach the situation with as much calmness and clarity as they can. Reacting in a knee-jerk fashion is more likely to increase long-term losses,” Seneque commented.

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Holly Cook

Holly Cook  is Manager, Morningstar EMEA Websites

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