Swiss asset manager GAM has suspended one of its investment directors after an internal investigation uncovered issues with his risk management procedures and record keeping.
Investment director and business unit head for the unconstrained/absolute return bond strategy Tim Haywood has been suspended with GAM saying the investigation did not raise concerns about his honesty.
GAM says regulators are aware of the issues and that it is does not think there has been “material” client detriment to date but that will stay under review.
Investment directors Jack Flaherty and Alex McKnight have taken on responsibility for the ARBF strategy.
Group chief executive Alexander Friedman says:“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.”
The total assets in the ARBF portfolios as at 30 June 2018 were CHF11bn (£8.5bn) with an average management fee margin of 61.9 basis points.