Gartmore shareholders last week voted against proposals to merge its £24m Japan opportunities fund into the forthcoming Japan absolute return fund.
Investors turned down the merger plan at an extraordinary general meeting. However, a spokesperson for Gartmore says the proposal was not dependent on the new fund, which will still be launched on January 29.
When Gartmore first suggested the merger, it 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.
Long View principal John Blackmore says: “I am glad to see this as it seems to be industry practice for fund houses to merge funds to hide performance. I also want to stay in Japan as opposed to an absolute ret- urn fund.”