New Star to close Japan fund

New Star Asset Management is to close its only retail Japan fund, subject to FSA and investor approval.

The portfolio of the £5.5m New Star Japan fund, acquired from Edinburgh Fund Managers in 2003, will be liquidated, and the proceeds invested in the £105m New Star Pacific Growth fund, managed by Ian Beattie.

The Pacific Growth fund is in the IMA Asia Pacific ex Japan sector, meaning investment in Japanese stocks is prohibited.

A spokesperson for New Star said: “We have taken the view that we have given Japan enough time but Asia excluding Japan has outperformed. If things pick up, we would probably go back into Japan, but there is so much more going on in Asia Pacific markets that we need to delve into, which is what we have been doing with the Pacific Growth and [offshore] Asian Opportunities funds."

Japan fund manager Amanda Gold will focus on her institutional responsibilities at New Star.

The company is also merging its £7.7m North American fund, another of the stable acquired from Edinburgh Fund Managers, into its £12.6m New Star American Portfolio fund of funds, managed by Mark Harris.