Page 2 of 2

Haywood, who is based in London, joined GAM in 2009, when it bought asset manager Augustus Asset Managers. In turn, Augustus was spun off from Julius Baer in 2007 as a part of a management buy-out involving Haywood.

GAM Hiring

GAM said that Jack Flaherty and Alex McKnight, two other investment directors, will take over Haywood's bond portfolio, and is recruiting additional portfolio managers due to strong interest from clients in absolute return fixed income products. 

«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», GAM boss Alex Friedman said in a statement.

Hefty Deal Writedown

The asset manager disclosed Haywood's exit alongside its first-half results, which were marred by a hefty write-down on systematic trading acquisition Cantab that GAM had warned of last week. 

Net profit slid by nearly two-thirds to 25.4 million francs from 67.7 million francs year-ago. Revenue rose by 11 percent to 287 million, while spending edged 7 percent higher. GAM said inflows slowed dramatically towards the tail-end of the first half.