AIM Funds Management Inc. is capping the Trimark Canadian Small Companies Fund to new investors on May 17.

The fund, named “Best Canadian Small Cap Equity Fund” at the 2001 Canadian Mutual Fund Awards, has recently enjoyed significant inflows of cash with assets under management rising from $90 million in December 2001 to nearly $300 million at the end of April.

The company says portfolio managers Keith Graham and Rob Mikalachki felt they may have trouble finding a suitable number of attractively valued holdings if present inflows were not curbed.

“Rather than compromise our standards or maintain a high, dilutive level of cash in the Fund, AIM chose to put investment discipline first,” says Patrick Farmer, chief investment officer and executive vice president at AIM.

The fund’s one-year return for the period ended April 30, 2002 was 42.67%. AIM says the performance gains, industry award and a top 5-star Morningstar rating led to the recent high level of investor interest.

“The capping honours the trust these investors have placed in us,” says Farmer.

Although the fund is closing to new investors, existing unitholders who invest regularly through pre-authorized chequing accounts may continue to do so. Similarly, unitholders who invest through Registered Education Savings Plans and Group RSP plans may also add to their holdings providing it is through a regular investment plan, subject to certain limitations.