GLG shuts Japan fund until liquidity returns

The £1.1bn GLG Japan Core Alpha fund will be soft-closed next month due to the lack of liquidity after last year’s 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.

The two funds will remain open to redemptions.

GLG says both funds will reopen fully once it 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.

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

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

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