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GAM drops billions in assets following Haywood scandal

GAM drops billions in assets following Haywood scandal

GAM Holding has lost nearly 11% of its assets under management since 30 June 2018, according to the firm's interim management statement.

Group assets fell from CHF 163.8 billion in June to CHF 146.1 billion by the end of September, a dive that GAM largely attributes to the liquidation of the absolute return bond fund (ARBF)  range, worth CHF 10.8 billion.

The ARBF range was previously overseen by Tim Haywood (pictured), who was suspended by GAM in July after evidence of misconduct came to light. 

Group CEO Alexander Friedman said in a statement: 'The consequences of the suspension of an ARBF investment director marked a clear setback for GAM. We are taking immediate and near-term measures to support GAM's profitability.'

The report noted that non-ARBF strategies also experienced outflows of CHF 5.3 billion, which GAM attributed to 'challenging market conditions for the industry and the impact from ARBF-related matters in August and September'.

GAM has reportedly been in talks with potential buyers in an attempt to stabilise the business following Haywood's suspension.

The firm would not comment on a possible sale, but did confirm that Haywood's misconduct was exposed by a whistleblower.

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