In an extraordinary general meeting, investors turned down the merger plan. However, a spokesperson for Gartmore says the proposal was not dependent on the new fund, which will still be launched on January 29.
When it first suggested the merger, Gartmore said an absolute return strategy would be better for investors because it would mitigate the effects of fluctuating foreign exchange values which were causing volatility in the Japan opportunities fund.
Investors are still eligible for free switching into another Gartmore fund.
The group will write to shareholders next week notifying them of the result of the EGM