Schroders to merge Japan funds

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Schroders is to merge two of its Japan funds, bringing the £29.5m Schroder Japan Alpha Plus fund into Andrew Rose’s £2.15bn Schroder Tokyo fund.

Subject to FCA approval, Schroders will combine the two funds as the Japan Alpha Plus fund, run by Nathan Gibbs, has shrunk in assets.

The Schroder Japan Alpha Plus fund has underperformed the index over the short and long term, delivering 29.4 per cent over three years compared to 52.6 per cent for the index. Over six months the fund has lost 7.2 per cent, compared to -2.7 per cent for the benchmark.

The fund merger will lead to lower costs for investors, says a statement from Schroders.

It says: “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 Schroder Tokyo fund has returned 14.6 per cent year to date, compared to 14.4 per cent for the benchmark.

Gibbs, who is based in Toyko at the moment, is relocating to London next year to take up the role of client portfolio manager for Japanese equities. He will report to Taku Arai, head of equities management at Japan and will cover Japanese equities clients.