London-based Bedlam Asset Management, which was launched in 2002 and has £360 million in assets under management, is to shut down and return money to investors.

The fund management house said it had no choice but to shut after a large investment consultant issued a "sell" notice.

The firm has started liquidating its fund range and winding down its business over concerns that it may be about to lose the bulk of its assets.

The company pointed to the sudden departure of CIO Ian McCullum as a catalyst for the potential outflows.

McCallum’s departure to Fullerton Fund Management in Singapore resulted in an automatic review by large investors and by a consulting firm, which represented for over 40% of Bedlam’s AUM.

The group has already shut down half of its fund range in June this year in a bid to focus on global equity strategies. The aim behind the fund closure was to cut headcount and other costs and enter on a marketing programme.

Bedlam said that the liquidation of the three OEIC funds will be completed by 15 November, while private client portfolios may be transferred to another company.

The closure process will be completed once assets are transferred.