GAM suspends £8.5bn fund manager Haywood
Following internal investigation
Swiss asset management giant GAM has suspended investment director Tim Haywood, following an internal investigation into issues relating to his risk management procedures and record keeping.
Haywood, who is the business unit head for GAM's CHF 11bn (£8.5bn) AUM unconstrained/absolute return bond strategy (ARBF), is also under the scrutiny of the relevant regulators, who have been "kept informed of the matter", the firm said.
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In a statement, GAM stressed that the investigation into Haywood, who is also a named manager of CHF 2.9bn (£2.2bn) in trade finance funds and CHF 653m (£502m) in other fixed income portfolios, "has not raised concerns regarding his honesty".
The investigation has also yet to find "any material client detriment…as a result of the issues investigated," but this remains under review.
GAM 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."
In Haywood's absence investment directors Jack Flaherty and Alex McKnight have taken up joint responsibility for the ARBF and other associated portfolios.
Flaherty has been one of the co-managers of the ARBF strategy for more than six years, while Alex McKnight has worked within the team for 11 years.
The pair are supported by 18 other experienced investment professionals, who will continue to manage ARBF portfolios in accordance with an unchanged investment philosophy.
Co-manager of the ARBF strategy, Daniel Sheard, who is not involved in the day-to-day management of the ARBF portfolios, will continue to manage other fixed income portfolios.
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GAM added it is now also recruiting additional portfolio managers for the strategy.
Friedman said: "GAM is a leader in the absolute return bond category, and has been for many years. We are fully committed to remaining so.
"We have a strong and broad team in place, with real depth of talent and a long and successful track record. I am confident that the team will continue to deliver value for our clients."
