The Matrix Asia Ucits fund follows a similar investment objective to the Matrix Asia, an unregulated Cayman-domiciled fund also managed by Foster.
The new fund, which launched today, invests in 30-50 stocks, held directly or indirectly via derivatives. Foster can also actively rotate between China and Japan depending on respective stages in the economic cycle.
Indeed according to Matrix, the existing Matrix Asia fund has outperformed the MSCI Asia Pacific Index in 2010 by shorting China and being long Japan, a stance Foster is adopting in the new portfolio.
According to Foster, over the course of an investment cycle he expects to add third of the fund’s performance from his short positions.
He says: “I expect my current portfolio positioning of shorting China and being long Japan to remain until some time in the fourth quarter of this when I expect to rotate back being long China and short Japan.”
Other Asian markets the fund can invest in include Australasia, Hong Kong, India, Korea, Singapore and Taiwan.
The fund, which is Irish-domiciled, will be marketed under private placement rule until mid-July when the group expects the fund to be passported into Britain by the Financial Services Authority.
Minimum investment in the fund’s retail share class is £50,000, which will be reduced to £25,000 when the fund is passported back into the Britain. The annual management charge is 2 per cent, which includes a 0.5 per cent trail. There is also a 20 per cent performance fee subject to a high water mark.