On Monday, AIM Funds Management Inc. announced the capping of the Trimark Canadian Small Companies Fund to new investors effective May 17.

According to AIM, the decision to cap the fund was made to maintain the integrity of the fund’s investment strategy.

The fund, which has approximately $287 million in assets, invests primarily in Canadian companies that have capitalizations at time of purchase of no more than $500 million and foreign companies capitalized at no more than US$1 billion.

Given the significant inflows into the fund over the past year, the portfolio management team anticipates that it will become increasingly difficult to identify suitable companies within this range of market capitalization.

“Instead of accepting new money that may compromise the integrity of the investment strategy, the portfolio management team would prefer to curb new investments until a sufficient number of appropriately valued potential Fund holdings are available,” said Patrick Farmer, chief investment officer and executive vice president at AIM.

Existing unitholders who invest regularly through pre-authorized chequing and group RRSP plans may continue to do so.

Similarly, investment instructions for Canada Education Savings Grants for Registered Education Savings Plans will be honoured. Existing unitholders may also add to their holdings providing it is through a regular investment plan, subject to certain limitations.