Downing has closed its open-ended UK micro-cap fund to new investors after it reached £30m in assets under management.
Existing investors in the MI Downing UK Micro-Cap Growth fund, managed by Judith MacKenzie, will be able to continue making monthly contributions.
Launched in September 2008, the fund invests in only 25 to 30 stocks with a market capitalisation of less than £150m.
The fund has outperformed the IA UK Smaller Companies sector average in the past three and five years, but has underperformed in the past year due to a sharp downturn in performance in the last month, according to data from FE.
Micro-cap vehicles have proven popular with investors in recent years, with launches from firms such as Liontrust, Miton and River and Mercantile.
The soft closure of the Downing fund comes soon after the firm raised £54.5m for the launch of an investment trust following the same micro-cap strategy.
The Downing Strategic Micro-Cap Investment Trust, which is also managed by Ms Mackenzie, was listed on the London Stock Exchange in May this year.