glg soft closes award-winning

GLG has announced the intention to soft close both its Japan CoreAlpha Fund and its Japan CoreAlpha Equity Fund from 30 March.

glg soft closes award-winning

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The GLG Japan CoreAlpha Fund was launched in November 1999 and has now reached £1.1bn in size.

In February 2010 the GLG Japan CoreAlpha Equity Fund was launched as a currency-hedged replica of the then £698m CoreAlpha Fund and since its launch two years ago it has now reached £727m in AUM.

GLG said both funds would be closed to new investors from the end of March, subject to FSA and board approval, but the funds will remain open to redemptions in the normal fashion.

Richard Phillips, head of UK retail at Man Group (which owns GLG), said: "The large cap high conviction approach of this strategy necessitates owning a relatively concentrated portfolio of stocks. 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 cap on the funds is set to be temporary and GLG plans to fully reopen them as soon as it is confident the market conditions in Japan will allow for normal trading, even in the event of a significant increase in AUM.

The GLG Japan CoreAlpha Fund has won Portfolio Adviser’s fund award for the Japan sector for the past three years running.

Both funds are managed by Stephen Harker and Neil Edwards, with the original fund UK-domiciled and the mirror fund Dublin-domiciled.

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