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GAM suspends absolute return chief over risk management

GAM suspends absolute return chief over risk management

GAM has suspended Citywire + rated Timothy Haywood following an internal investigation, the Swiss asset management firm has announced.

The suspension of Haywood, who is head of the group's unconstrained/absolute return bond strategy, relates to his risk management procedures and his record keeping in certain instances.

In a statement that coincided with a results update for the group, GAM said the investigation into Haywood has not raised concerns regarding his honesty.

GAM has not established any detrimental impact on clients but this remains under review.

Jack Flaherty and Alex McKnight will assume joint responsibility for the GAM Multibond – Absolute Return fund and associated portfolios.

Daniel Sheard, who had co-run the absolute return strategies, is now not involved in the day-to-day running of the fund and continues to run other fixed income portfolios.

Absolute return

GAM said absolute return remains a core part of its business and it will be recruiting additional portfolio managers in light of increased global demand for such products.

The total assets in the absolute return portfolios CHF 11 billion (€9.4 billion). Haywood was a named portfolio manager on CHF 2.9 billion (€2.5 billion) in trade finance funds and CHF 63 million (€54 million) in other portfolios.

In August 2016, GAM singled out Haywood’s strategies as being under increased pressure, with outflows having a knock-on effect for the company’s fall in assets under management. At that time it had sat at CHF 19.2 billion (€16.5 billion).

Funds in focus

In terms of performance, across the five strategies Haywood was assigned to, he had a loss of 1.84% on a three-year basis against a 0.03% return by the average manager in the Alternative Ucits – Bond Strategies sector.

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