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Many institutional investors receive a raw deal. They find themselves signing relative mandates when their needs are for absolute returns. Moreover, for many fund management companies, segregated portfolios of less than £50m are little more than a training ground for juniors to learn their craft. By contrast, Bedlam has set a ceiling on our total number of segregated portfolios under management at a mere 50. This ceiling has been put in place for three reasons. First, there is an optimum number of accounts that can be properly serviced; this is predicated on the need to have regular client contact. Second, there is likewise an optimum number of fund managers in any firm. The last reason is our strong belief that, just as in our public funds there should be a ceiling on the size of each fund to achieve maximum flexibility, so the firm overall needs to have a ceiling on the total size of funds under management, to allow customers maximum flexibility in stock selection. For example, a £1bn UK equity fund investing in 50 stocks, for instance, is in practice already excluded from three quarters of all listed companies. This cannot be to the benefit of clients. Bedlam as such offers a genuine and logical alternative.
Institutional Fees
Institutional and segregated account fees are by negotiation. Charges can consist of a flat management fee or utilise our preferred structure of a lower base fee together with a performance-related fee. |
