Outflows see Aberdeen close World Government Bond fund

AAM said it was making the move after just over three years since its launch and significant redemptions for the fund which is run by the global macro team.

Redemptions by institutional investors have seen the fund’s assets drop from £24.5m to less than £8m since its launch in December 2013.

The fund will close on 11 August and will no longer accept subscriptions from 21 July or sales from 3 August.

A spokesperson for Aberdeen said: “Small funds face a number of operating difficulties as they are unable to benefit from economies of scale.

“As a result of the large redemption requests, and the sub-scale fund that would result from them, we believe it is in the best interest of all shareholders to close the fund, liquidate all of the underlying assets and return the proceeds to investors.”