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GLG soft closes Harker's Japan funds on liquidity fears

GLG soft closes Harker's Japan funds on liquidity fears

GLG has soft-closed Citywire A-rated Stephen Harker's Japan CoreAlpha Equity strategy.

From 13 October GLG will restrict trade size per client to £1 million per day for each of the two funds within the strategy, the UK-domiciled GLG Japan CoreAlpha and a Dublin-domiciled version of the fund.

The firm was prompted to take action after strong inflows into the two funds rose to a combined $6.3 (£3.9) billion.

Co-managed with Harker by A-rated pair Jeffrey Atherton and Neil Edwards alongside Adrian Edwards, the strategy, including segregated mandates, is $10.5 billion in size.  

Richard Phillips, head of UK retail at GLG-owner Man, said: 'GLG’s Japan CoreAlpha strategy has performed strongly over the last two years and has attracted significant new subscriptions.

'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 last time GLG soft-closed the strategy was in March 2012, following a fall in liquidity triggered by the Japanese earthquake in 2011. The funds reopened in December 2012. 

According to the UK domiciled-fund has return 29.3% in the three years to the end of August.

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Stephen Harker
Stephen Harker
54/95 in Equity - Japan (Performance over 3 years) Average Total Return: 43.11%
Jeffrey Atherton
Jeffrey Atherton
55/95 in Equity - Japan (Performance over 3 years) Average Total Return: 43.11%
Neil Edwards
Neil Edwards
56/95 in Equity - Japan (Performance over 3 years) Average Total Return: 43.11%
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