Aberdeen to close World Government Bond fund following outflows

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Aberdeen Asset Management is closing the World Government Bond fund following significant redemptions just over three years since its launch.

The fund launched in December 2013 and 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.

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 says: “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.”

Over three years the fund has returned 34 per cent against the 20.8 per cent average of the IA Global Bonds sector, FE data shows.