Gartmore unveils Japan Absolute Return fund

29 January 2010 | By Hannah Smith

The vehicle is a Ucits III onshore version of the AlphaGen Hokuto hedge fund, managed by John Stewart.

The fund will typically have about 100 long and short positions, with a bias towards large-cap companies with a market cap of more than ¥100 billion (£680m).

It will usually not have more than 5% in a single holding, and net exposure to a single sector will be plus or minus 10%, to ensure the portfolio is well diversified.

At launch the top five holdings are Japan Real Estate Investment, Mitsui, Nippon Electric Glass, Sharp, and Toshiba and the net market exposure is 22%. (article continues below)

The fund sits in the Investment Management Association’s (IMA) Absolute Return sector.

Minimum investment is £1,000 for the retail share class. The initial charge is 5%, the annual management charge is 1.5% and there is a performance fee of 20%.

Last week unitholders in the group’s Japan Opportunities fund rejected proposals to merge the £24m fund into the new absolute return offering.