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The fund’s investing will now focus on Association of South-East Asian Nations markets, while withdrawing from Japan.

SooHai Lim, manager of the Baring Asean Frontiers fund, said: “On a long-term basis, we expect slower growth in Japan than in so-called ‘frontier’ countries because Japan is a more developed market. The demographics of the Asean markets also mean there is more growth potential in these countries.”

Around 80 per cent of the fund will be invested in the core Asean markets of Singapore, Malaysia, Indonesia, Thailand and the Philippines, with 10 per cent in frontier markets such as India, Vietnam and Sri Lanka, and the remaining 10 per cent in Hong Kong, China and Taiwan.

The fund’s benchmark will be the MSCI South East Asia index, while the portfolio will consist of 40-50 holdings.

Mr Lim said: “Indonesia is strong in commodities, especially coal, whereas Malaysia is a big supplier of palm oil. Singapore is a leader in building offshore rigs through companies such as Sembcorp Marine.”

Mark Dampier, head of research at Hargreaves Lansdown, said: “Japan has had a rotten time over the past few years, and you can’t get private clients to buy it at the moment. But when I hear a fund is pulling out of a particular area, I tend to think it’s the time to go in. By going into the frontier countries, they are going into something that has already done very well. It could be a case of selling low and buying high.”