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The Japan vehicle will alter its base currency from yen to dollars and issue a new institutional hedged share class.

Both this and another new institutional share class will feature a 1 per cent management fee, compared with the 1.5 per cent charge available to retail investors.

Polar Capital also intends to introduce share classes that will deduct performance fees on a solely relative basis.

The rate will be 10 per cent of outperformance of the Topix index compared with the typical rate of 20 per cent.

James Salter, manager of the fund, said Polar Capital had launched the hedged share class to lock in favourable exchange rates after the yen-to-sterling rate went from 250 to 188 in 18 months.

He said: "This has already proved to be beneficial and will enable clients to take advantage of the terrific valuations, especially in the mid and small-cap areas of the market that haven't yet benefited from the recent rally."

According to Financial Express, the MSCI Japan index rose 9.6 per cent from March 1 to May 18, while the MSCI Japan Small Cap index went up 7.9 per cent.

Elsewhere in the developed world, small and mid-cap indices rallied strongly as optimism returned to markets.