Money manager GAM will consolidate investment teams across its fixed-income and equity units, resulting in staff reductions, an internal memo seen by Pensions & Investments states.
The memo, by interim Group CEO David Jacob who stepped into the role this month, was sent following a group management board meeting in Zurich last week.
The firm will bring together its London, Zurich and New York-based fixed-income teams to focus on four areas: an enhanced emerging market bond platform; a broadened global credit capability; an amalgamated asset-backed securities and mortgage-backed securities investment team; and the development of its existing total return bond business into a global strategic bond approach, the memo said.
For equities, the main change will see the consolidation of units across Europe into a single team. GAM will retain its separate non-European equities business.
"Today we are taking the first such action in our fixed-income and equities investment teams, aimed at positioning us for targeted growth in those areas where we have recognized expertise. By consolidating some teams we will be better able to deliver scalable products to our clients worldwide," Mr. Jacob said in the memo. "This will mean that a number of current investment roles will become redundant."
The memo did not specify the number of staff affected, but said those involved have been informed "and the dialogue with them is continuing."
The board and the group management staff will continue to discuss additional measures to balance growth and profitability, said the memo.
"I am mindful, particularly as we are constrained by business and legal considerations, that our communication to date has not always lived up to your expectations. The (group management board) will look specifically at ways to improve this in the future. For my part, I will continue sharing my thoughts with you and making every effort to update you candidly and regularly," Mr. Jacob said in the memo.
A spokeswoman declined to comment beyond the memo.
The 146.1 billion Swiss franc ($145.4 billion) firm has been in the news recently following the investigation and suspension of Tim Haywood, investment director business unit head for the unconstrained/absolute-return bond strategy, that also led to the liquidation of a number of relevant strategies.