GAM has announced the suspension of Tim Haywood following an internal investigation related to his risk management procedures and record keeping instances.
The investigation into Haywood, who is head of GAM's unconstrained/absolute return bond strategy (ARBF), has not yet revealed any material client detriment to date, though this remains under review.
GAM noted that investigation has not raised concerns about his honesty.
Group CEO Alexander Friedman said: ‘We take our responsibilities and controls very seriously. Having conducted the investigation with external counsel, we now intend to follow our usual internal processes and will take any further action that may be appropriate.’
Investment directors Jack Flaherty and Alex McKnight have taken on responsibility for the CHF 11 billion ARBF. Flaherty has co-managed this strategy for the past six years, while McKnight has been a part of the ARBF team for 11 years.
Daniel Sheard, a co-manager of the ARBF strategy who is not involved in day-to-day management, continues to manage other fixed income portfolios.
GAM also said it is continuing to recruit additional portfolio managers due to significant client interest in the ARBF product.