UK - No gain, no fee fund manager Bedlam Asset Management has won its first scheme mandates.
And it expects to have £20m in assets under management by the end of the year.
Bedlam initially targeted retail investors when it launched a year ago.
At the end of June, the firm had £3.5m in assets under management, but since then, it has started to target the institutional market.
The firm declined to reveal the exact size of the three scheme mandates it has won but did say they were for a global equities brief and two UK equities and bond portfolios.
Chairman Jonathan Compton said Bedlam was approached by the schemes in all three cases and was hired because they were dissatisfied with the service and returns provided by their current fund managers.
He added: “The trend is very clear – schemes are moving away from the larger houses towards firms that actually know what the client wants.”
Aon Consulting investment principal Chris Erwin agreed, and predicted that other schemes could follow suit.
“This is a novel approach that is in its infancy, and the fact the firm has picked up pension fund mandates shows that clients are increasingly sensitive over fees.”
*Bedlam Asset Management’s UK equities fund produced a 6.4% return during the second quarter, compared to the FTSE All-Share, which returned 5%.
For the year to July 28, Bedlam’s UK equities fund has returned 15.3%.
The firm only charges clients if it returns more than 1.25% per quarter, which means that it can also charge its global and emerging markets clients after both funds outperformed.
Bedlam’s global equities fund posted a second quarter return of 5.7% and a 12.6% return for the year to July 28. Over the same period, the firm’s emerging markets fund returned 6.5% for the quarter, and 16.9% for the year respectively.
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