GAM Slumps as Top Bond Manager Haywood Suspended Amid Probe
- Tim Haywood, head of flagship fund, faced risk investigation
- Suspension, warnings overshadows gain in first half profit
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GAM Holding AG slumped the most in nine years after the Swiss investment firm suspended the manager of its flagship bond fund and warned that the disciplinary action, together with volatile market conditions, may lead to outflows.
GAM took action against Tim Haywood, who heads the 11 billion franc ($11.1 billion) absolute return bond strategy, after an investigation revealed issues with his risk management procedures and record keeping. The probe has not raised concerns about his honesty and the firm has so far not seen a material impact on clients, GAM said.