Investment firm Bedlam Asset Management plc has announced it has begun the process of winding down the company, with a view to liquidation.
A statement by the firm cited the departure of its chief investment officer, Ian McCallum, as a primary factor in its voluntary closure.
The statement said: “Unfortunately and without warning, the chief investment officer announced his departure last month to take up a position in Singapore.
“This resulted in an automatic review both by large investors and by one consulting firm, whose clients account for over 40% of Bedlam’s assets under management.
“As a result of the change, that consultant revised the recommendation on Bedlam to ‘sell’. 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.”
In order to prevent a significant fall in fee outcome, and its consequential losses, the decision was made to wind down, and eventually close, the business.
Bedlam is retaining “sufficient staff” to manage the interests of investors and shareholders.
Investments in Bedlam Funds plc (the OEIC) have begun to be liquidated entirely, with expected completion by 15 November.
The company is holding out on requesting shareholders’ approval on the formal closure process and appointment of a liquidator until after investors have transferred their assets.