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The investment fund manager co-founded by Sir Jacob Rees-Mogg - Somerset Capital Management - is to close down.

The firm said it was in advanced talks to transfer its top performing funds to a new investment adviser, while the wider business in London will close.

The company was co-founded by the Conservative MP 16 years ago and he remains a shareholder.

the firm had lost more than two-thirds of its assets after losing its largest client.

Wealth manager St James's Place had severed ties with the company, removing about £2bn in assets.

Somerset Capital Management had $10bn (£8bn) under management at its peak and had rejected a bid of up to £90m from London-based rival Artemis Investment Management four years ago, according to the FT newspaper.

Sir Jacob, who was a minister in the governments of Boris Johnson and Liz Truss, left Somerset Capital Management in 2019. The ³ÉÈË¿ìÊÖ has approached him for comment.

Oliver Crawley, a partner at Somerset Capital Management, said: "It has been a privilege to manage capital for world-leading institutions and clients for over 16 years.

"I am incredibly proud of all we have achieved in that time through the hard work and skill of our dedicated team."

The company said its UK funds, including the Somerset Asia Income Fund and Somerset Emerging Market Dividend Growth Fund, along with its investment team, were looking to transfer to a new investment adviser.

If this could be achieved, it would "ensure the seamless continuity of these funds and their managers", the company said.