Bedlam to close after investment chief’s shock move

Bedlam Asset Management is set to close down due to fears about massive client withdrawals from its funds.

The firm announced yesterday it was winding down, returning the cash in its funds to investors and appointing a liquidator.

In a statement, the firm said that the shock departure of its chief investment officer, Ian McCallum, last month had resulted in one consulting firm, whose clients make up 40 per cent of Bedlam’s assets, placing a sell rating on the three Bedlam funds.

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As the consulting firm’s clients cannot hold a fund with a sell rating, Bedlam said it expected significant outflows, which would mean a huge drop in its fee income to the point where it would be unsustainable to run the business, so it has decided to close down.

Bedlam moved to reassure investors that all assets were held by independent custodians and would be unaffected by the closure.

The three Bedlam funds, Global Income, Global and Emerging Markets are in the process of selling all their investments and investors in the funds will be able to sell out from November 18.

Bedlam will continue to manage its segregated institutional accounts and private client mandates until arrangements can be made to transfer them to another firm or close them down.

When all investments have been wound down or transferred the shareholders in the firm will be asked to approve a formal closure process.