"Nothing has changed – the fund is still very much open and the managers are happy with the current size," said a spokesperson for JO Hambro.
"We are keen to reiterate that capacity is something we always keep a close eye on."
One of the main reasons why JOHCM is keen to outline a maximum capacity level for the fund is so it has the flexibility to hold small and mid cap companies.
In the prospectus, the group states: "The maximum capacity level for the strategy is approximately £1bn."
"This allows [the managers] to protect performance for the existing client base and ensure that they do not encounter liquidity constraints."
"When a fund manager joins JOHCM, they determine at which level they would like to set the strategy capacity."
"Assets under management are capped at levels far below those of most major competitors to allow flexibility in terms of buying smaller cap stocks, flexing position sizes and exiting stocks."
The spokesperson said the fund retains its overweight in small and mid caps.
"The managers have not encountered any problems with liquidity, as the performance clearly suggests."
Managers James Lowen and Clive Beagles include FTSE 250 companies DS Smith and 3i Group in their top-10 holdings.
Performance of fund vs sector and index since launch
Source: FE Analytics
According to FE data, the fund has returned 89.9 per cent since it was launched in November 2004, compared with 65.61 per cent from its FTSE All Share benchmark and 54.25 per cent from the average IMA UK Equity Income fund.
Its bias towards small and mid cap stocks has made the fund marginally more volatile than its peer group, although it lost around 5 per cent less during the 2008 downturn.
As well as significantly outperforming its benchmark and sector since launch, JOHCM UK Equity Income is the only fund in its sector that is top quartile over one, three and five years, as well as over one, three and six months.
Performance of fund vs sector and index over 5-yrs
| Name | 1-yr returns (%) | 3-yr returns (%) | 5-yr returns (%) |
| JOHCM - UK Equity Income | 20.49 | 38.37 | 25.46 |
| FTSE All Share | 15.45 | 31.21 | 9.25 |
| IMA UK Equity Income | 14.48 | 31.96 | 3.51 |
Source: FE Analytics
It is currently yielding 4.6 per cent, which is a touch above average for a UK Equity Income fund.
The fund charges 15 per cent on any returns in excess of its FTSE All Share benchmark on an annual basis. It uses a high watermark, meaning that all underperformance from one year is carried through to the next.
The managers are only paid a fee once it makes up for the underperformance from the previous year. On top of this, it has a total expense ratio (TER) of 1.32 per cent.