August 6, 2018 / 2:40 PM / in a year

Swiss group GAM says other funds operating normally

ZURICH, Aug 6 (Reuters) - Swiss asset manager GAM Holding said on Monday funds other than those run by an investment director it suspended last week after finding risk management and record keeping shortfalls were operating normally.

“All other investment teams are managing client funds as normal,” a spokeswoman said.

The Zurich-based company on Thursday said it had suspended all subscriptions and redemptions in its unconstrained/absolute return bond funds (ARBF) after an investor exodus, sending its shares reeling for a second consecutive session.

Its stock has since recovered some of the losses, and were up 2.4 percent at 1300 GMT on Monday.

In a letter to investors posted on its website and dated Aug. 2, GAM Investments provided more details about the decision to suspend director Tim Haywood.

“First, Mr Haywood’s conduct issues relate primarily to investment decisions in the ARBF funds and no other employees are being investigated by GAM in relation to these matters,” it said.

“Secondly, the investigation did not conclude that there has been any departure from a legitimate investment strategy, or, most importantly, that there has been any material client detriment to date.”

It said the forensic part of the investigation had been largely completed, and GAM now needed to focus on internal disciplinary processes to establish if any further actions were necessary. (Reporting by Angelika Gruber and Michael Shields; editing by David Evans)

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