GLG to soft close Japan fund until liquidity improves

  • Print
  • Comment

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.

  • Print
  • Comment

Daily Email Updates

If you enjoyed this article, sign up to receive the latest breaking news and analysis for your industry from Fund Web.

The Money Marketing CPD Centre

Time spent reading about technical or regulatory issues can build your annual CPD hours. Log and plan your annual CPD for free with The Money Marketing CPD Centre.



Have your say Edit my profile/screen name

You must sign in to make a comment

Fund Data



Poll

Is the FCA right to ban fund groups from using dealing commission to pay for access to company executives?