London-headquartered Bedlam Asset Management has decided to close and liquidate as fears of client withdrawals and a resulting drop in fee income, mount.

London-headquartered Bedlam Asset Management has decided to close and liquidate as fears of client withdrawals and a resulting drop in fee income mount.

In a statement, the firm said that it was winding down, returning the cash in its funds to investors and appointing a liquidator.

The closure, the firm said, is in part due to the sudden departure of its chief investment officer, Ian McCallum, last month. McCallum’s resignation resulted in a review of the funds by large investors; one consulting firm, whose clients make up 40 per cent of Bedlam’s assets, placed a sell rating on the three Bedlam funds.

“Many clients are not allowed to invest with managers with such a rating, whether warranted or not. The result is that a considerable net outflow is expected, whilst potential new clients are almost certain to delay any investment decision. The consequences would be a material fall in fee income, with resultant losses at an unacceptable level,” the firm said in a statement.

Consequently, Bedlam’s board has decided on voluntary closure, once the firm’s funds have been liquidated. 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 18 November.

The firm also reassured investors that the closure will not affect their assets, and that institutional as well as private clients will be actively managed until a suitable transfer to another firm can be arranged.

As such, the office will be open for as long as necessary for an orderly closure. With regards to shareholders, distributions of remaining cash after closure costs will take place once all formalities have been completed.