Fidelity has confirmed it is set to soft close its £248m Fidelity UK Smaller Companies fund managed by Alex Wright next week.
The £248m fund will be removed from all platforms, including FundsNetwork, although existing monthly savings plans will be unaffected.
The fund has returned 103.3 per cent in the past three years compared to an average return of 55.9 per cent for the UK Smaller Companies sector.
A Fidelity spokeswoman says: “Fidelity UK Smaller Companies fund has experienced strong interest from investors in recent months attracted by the strong performance achieved by portfolio manager Alex Wright since launch.”
She says: “Our priority is to protect the interests of existing customers. In order to ensure that the portfolio manager retains the flexibility to implement his investment strategy and is not constrained by liquidity, we are taking steps to slow flows into this fund.”
Hargreaves Lansdown senior investment manager Adrian Lowcock says it is better to act sooner rather than later to protect the interests of existing investors.
Lowcock highlights the £406m Cazenove UK Smaller Companies fund run by Paul Marriage, the £145m Marlborough UK Micro-Cap run by Giles Hargreave or the £577m Old Mutual Small Cap run by Dan Nickols as possible alternatives.