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Henderson to close Japan Absolute Return fund

Henderson Global Investors will close its £2.8m Japan Absolute Return fund later this year and looks to merge two others.

By Jenny Lowe | Published Aug 14, 2012 | comments

Henderson Global Investors is seeking to close its Japan Absolute Return fund and merge the Gartmore Long Term Balanced fund into the Henderson Diversified Growth fund as part of its fund rationalisation process.

The Japan Absolute return fund, managed by John Stewart and Robert Tull, is being closed as a result of its small size making it “challenging to achieve cost effectively the desired level of diversification,” according to James Harris, head of investor services at the group.

He added: “It is also unlikely that the fund wil be able to attract significant levels of new inflows. We therefore believe that the fund will be unable to grow at a rate that would either maximise returns for investors or continue to make it feasible from a commercial viewpoint.”

Meanwhile, the merging of the fettered Gartmore Long Term Balanced fund, managed by Bill Edgar, into Bill McQuaker and Chris Paine’s Henderson Diversified Growth fund is subject to investor approval and part of a wider plan the group has to streamline its offerings.

According to Mr Harris, the Gartmore Long Term Balanced fund has historically invested in funds managed solely by Henderson, while the Henderson Diversified Growth fund invests across a broader mix that includes traditional asset classes such as equity, fixed income and bonds, as well as having the ability to invest in other areas like absolute return funds and commodities and funds outside of the Henderson group.

Both funds are similar in their aim to achieve long term returns by predominantly investing in collective investment schemes.

He said: “We believe this broader asset mix combined with more dynamic asset allocation has the potential to deliver attractive long term returns with potentially lower volatility.”

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