Hargreaves Lansdown has dropped the Standard Life Investments UK Smaller Companies fund, managed by Harry Nimmo, from its Wealth 150 buy-list.

The fund, which soft-closed to new investors earlier this year, has been removed from the list because of the closure.

Current investors are able to continue investing in the fund, but no new investors will be admitted.

Meera Patel, senior analyst at Hargreaves Lansdown, said the closure of the fund was a 'positive' move for existing investors.

 'The fund has seen strong inflows of capital in recent years, helped by its excellent performance.

'Its manager, Harry Nimmo, now feels that it has grown to an optimum size, and that if it grew significantly bigger he would need to alter his investment strategy, which could potentially impede performance.'

She added, 'Restricting inflows will allow the manager to keep the fund smaller and more nimble, allowing him to quickly take advantage of opportunities as soon as they arise, and react speedily to market developments.'

To receive more relevant articles like this one, why not sign up to our weekly newsletters, click here