GLG to soft close Japan fund until liquidity improves

13 February 2012 | By Gary Jackson

The £1.1 billion GLG Japan CoreAlpha fund will be soft closed next month due to the lack of liquidity which followed last year’s Tōhoku earthquake and tsunami.

The fund, which is managed by Stephen Harker and Neil Edwards, and the offshore GLG Japan CoreAlpha Equity fund will soft close on March 30, subject to approval from the FSA and the company’s board.

They will fully reopen once GLG is “confident that market conditions in Japan allow for normal trading, even in the event of a significant increase in assets under management”.

Man Group head of retail Richard Phillips says: “Since the earthquake in Japan last March there has been a reduction in liquidity in the Japanese equity market.

“While this has not impinged on the team’s ability to manage portfolios with the desired degree of liquidity and flexibility, it has created a risk that performance could become constrained if inflows into the strategy increase.”

The two funds will remain open to redemptions in the usual manner.

Chelsea Financial Services managing director Darius McDermott says: “We are fully supportive of GLG’s decision to soft close the funds as they are looking after their investors.

“The closure should be only temporary though and, once market conditions in Japan allow for normal trading, the funds could be reopened to new investors.”

McDermott says although he is supportive of the decision, he was disappointed investors would not be able to access the fund.

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