Aberdeen Standard Investments is to close its £526 million Global High Yield Bond fund because the fund’s largest institutional investor — Scottish Widows — is divesting its huge stake. 

“One institutional investor with a significant holding in the fund, over 95%, is divesting,” said Aberdeen Standard.

“We believe it is appropriate and to the benefit of remaining investors to close the fund given its small size.

“Investors may choose to re-invest in one of our other funds in our UK-domiciled range.”

The fund will close on October 26, with the last dealing day being October 12.

The divestment is part of Lloyds Banking Group’s Scottish Widows pulling the £109 billion asset management contract for the old SWIP mandate from Standard Life Aberdeen.