Bedlam Asset Management, which launched four years ago promising to shake up the UK fund management industry, is set to double its assets under management to more than £400m (€592m) after its biggest mandate win.

The group declined to name the institution behind the £225m brief but said the money would go into its new 200 global equity income fund, launched in May. Bedlam, named after a former London asylum, has raised assets under management 40% to £203m this year. In its most recent accounts, it reported a 400% jump in profits to £1.5m in the first six months. Chairman Nigel Johnson-Hill said last month: "I can see few reasons why by the end of June 2008, the company should not be managing £800m." Founded in 2002 by Jonathan Compton, a former Barings fund manager, Bedlam has a history of innovation. It charges no management fees, instead taking a performance fee only if it delivers more than 1.25% quarterly returns, though clients can opt for a flat fee. The manager broke a City taboo two years ago by offering cash sweeteners to pension fund clients that defected from a rival. Its website decries managers for running fee structures that are "ethically very close to simple fraud". Its 200 fund is unusual because it rewards up to 200 early investors by making later ones pay a premium to be redistributed among the first 200.