The Schroder Japan Alpha Plus Fund currently has £28.3m in AUM and has produced fourth quartile performance over 1, 3, and 5 years, while the Schroder Tokyo Fund has £2.1bn under management and has produced a return of 45% over five years, according to FE Analytics.
According to a spokesperson for the firm, the not only will the merger, result in a lower ongoing charge for unitholders of the Schroder Japan Alpha Plus Fund, but it will also see them benefit from the economies of scale created through the management of a larger pool of assets.
“Both funds have similar investment objectives and employ the same investment and borrowing powers. The funds have a comparable investment approach and follow bottom-up fundamental research driven investment principles,” the spokesperson said.
As a result of the merger, Nathan Gibbs will relocate to London in q1 2016, the firm said, to move into the newly created role of client portfolio manager for Japanese Equities.
Reporting to Taku Arai, head of equities management, Japan Gibbs will cover Japanese equity clients and prospects in the UK and Continental Europe.
The merger is remains subject to approval by the Financial Conduct Authority.
