GAM suspended an investment director business unit head for issues relating to risk management procedures and record keeping, following an internal investigation.
The firm said in a statement Tuesday that Tim Haywood, investment director business unit head for the unconstrained/absolute-return bond strategy, had been suspended and the relevant regulators were being kept informed on the matter.
The investigation has not raised concerns over Mr. Haywood's honesty, and GAM has not established any material detriment to clients as a result of the issues it is investigating, the firm said. GAM added that "this remains under review."
The firm's absolute-return bond strategies had 11 billion Swiss francs ($11.1 billion) in assets under management. Approximately 6.2 billion francs of those assets are eligible for performance fees, said GAM.
Mr. Haywood is also a named manager of 2.9 billion francs in trade finance strategies and 653 million francs in other fixed-income portfolios.
The firm has a total 163.8 billion francs in AUM.
Responsibility for the strategies and other associated portfolios has been assumed by Jack Flaherty and Alex McKnight, investment directors.
"We take our responsibilities and controls very seriously," said Alexander S. Friedman, group CEO, in the statement. "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."
A further statement provided by a spokeswoman for GAM said: "At present, we do not think it is appropriate to give any more detail about the investigation, as we now intend to follow our usual internal processes before concluding what further action, if any, is necessary. We cannot comment on the length of the investigation."