Polar Capital has adjusted its Japan Alpha fund to remove the need to target growth-focused stocks and also added the capacity to invest in small-cap companies, Citywire Selector has learned.
Following the change of emphasis, the Dublin-domiciled Polar Capital Japan Alpha, which has €63 million in assets under management, is now primarily focused on value investment opportunities.
When the fund was launched in late 2012, the aim was to target medium- and large-cap companies in the domestic market. However, it is now able to invest across all cap sizes.
A spokesperson for Polar Capital stressed the fund’s overall investment philosophy and fund management team would remain unchanged despite the adjustment.
The changes to the Japan Alpha fund do not impact the larger Polar Capital Japan fund, which is also co-managed by Salter and Cawley.
This fund has undergone a tough time in recent years and experienced a large volume of outflows. According to a stock market update in April, the strategy has seen assets fall to £970 million (€1.16 billion) at the end of the first quarter.
The company said the outflows and underperformance linked to the fund had been largely due to the onset of Japanese Prime Minister Shinzo Abe’s stimulus measures, which did not favour the investment team’s approach.
The Japan Polar Japan Alpha fund lost 4.8% in Japanese yen terms over the three years to the end of June 2016. This compares with a 16.5% rise by the Topix TR over the same timeframe.