GLG Partners has said it will restrict the amount clients can purchase of its flagship Japan CoreAlpha range in a bid to protect manager Stephen Harker’s strategy.
The group said strong inflows into the UK-domiciled Japan CoreAlpha fund and its Dublin-domiciled version hit $6.3bn (£3.8bn) but this rose to $10.5bn when segregated mandates were included.
GLG said it would restrict inflows from October 13 by only allowing clients to trade up to £1m per day. The group said there was a “reduction in liquidity” in the Japanese equity market, something which has previously led the fund to ‘soft closing’ before.
Redemptions will be allowed unrestricted.
Richard Phillips, head of UK retail at Man, said: “While the strategy remains manageable at its current size, liquidity in the Japanese equity market has fallen back again, and we have taken the decision to restrict inflows to protect existing investors from the risk that performance could become compromised.
“We will continue to monitor the situation closely and we will adjust the trade size limit in line with market conditions, with all decisions made – as this one has been – in the best interests of our investors.”
The GLG Japan CoreAlpha and GLG Japan CoreAlpha Equity funds were soft-closed temporarily in March 2012 following a reduction in liquidity in the Japanese equity market triggered by the earthquake in 2011. The funds reopened in December 2012.
