The investment house behind the launch- Bedlam Asset Management- has criticised traditional fund managers for charging large fees in the face of consistently poor returns, and has pledged not to charge fund management fees unless it makes money for its investors.

According to Citywire: 'The firm charges a fee only after a fund makes a positive return of more than 1.25% each quarter, up to a maximum of 1.4% of a fund's assets. Bedlam will ensure the fee does not eat into the 1.25% return.' Founder and Chief Executive, Jonathon Compton also reportedly pays himself a minimum wage in order to 'emphasise his firm's disdain for unearned success'.

With an attitude like this, however, Bedlam is not expecting an easy ride and has steeled itself against attacks from competitors outraged by a deliberately hard-hitting advertising campaign by hiring legal representation.

The three funds launched by the asset management company on Monday were Bedlam UK, Bedlam Global, and Bedlam Emerging Market.