We use cookies to support features like login and allow trusted media partners to analyse aggregated site usage.
To dismiss this message and allow cookies to be used, please click "Continue".



Twitter board

Follow us
  • More and more pension schemes are increasing their allocations to private equity, but will the illiquid strategy br… https://t.co/8l8TI75r9v23 hours ago
  • Border to Coast Pensions Partnership CEO Rachel Elwell tells Mona Dohle about the challenge of developing a common… https://t.co/nQZfFveQdzyesterday
  • Out now- The portfolio institutional October issue featuring our cover on ESG and fixed income: Breaking new ground… https://t.co/hnmwYclXS52 days ago
  • Friday View: ESG in fixed income: The new frontier - LGPS bolster infrastructure collaboration - EM Roundtable: The… https://t.co/zxvEKaZkoM5 days ago
  • Local government pension scheme (LGPS) pool Border to Coast has appointed the first external managers for its £1.2b… https://t.co/eBAbx0ubzJ5 days ago
  • "Investors seduced by the impressive growth forecasts for emerging market economies should prepare themselves for a… https://t.co/7nAnrL8s7t7 days ago
  • "New RPMI Railpen chief investment officer Richard Williams talks to Mona Dohle about restructuring the scheme’s in… https://t.co/T1Xgvnx6Y410 days ago
  • Friday View: Pension funds turning to smart beta - Europe's fund managers ready for Brexit - Master trust rules rai… https://t.co/wZS8qe41Ci12 days ago
  • "The UK leaving the European Union will have a limited impact of the continent’s fund management industry, a former… https://t.co/tel0BRmGKX12 days ago
  • Pension schemes have had enough of high fees and poor returns. Is smart beta their chance of something better? Re… https://t.co/CzqPANU8D814 days ago
  • Read our latest roundtable where we brought fund managers, consultants and trustees together to discuss diversified… https://t.co/3TRGdybVwX16 days ago
  • Friday View: Lothian's alternative to pooling - Master trusts: The consolidation game - Whistle blower revelations… https://t.co/jbU9tbveK219 days ago
  • New authorisation rules are driving consolidation among master trusts, but what effect will this have on the DC mar… https://t.co/wQcgDpIvzs23 days ago
  • Friday View: Piecing together the pooling puzzle- DGF Roundtable - Royal Mail names pensions boss -LGPS Central sel… https://t.co/DPfZ3WUv6K26 days ago
  • portfolio institutional is launching a new series on LGPS pooling, tracking changes to investment strategies and up… https://t.co/Ld04PZ2TNK28 days ago
  • Friday View: ESG: What lies beneath? - Industry backs DWP's ESG push - LGPS Central CEO to step down - Railpen hire… https://t.co/S3knBieob033 days ago
  • Out now- The portfolio institutional September issue feat our cover on ESG: What lies beneath? -Interview: Railpe… https://t.co/x9EYxDVXEl37 days ago
  • Friday View: LGPS pool appoints CIO - Jack Dromey on cost reporting - TPR hires former FCA director - NEST issues p… https://t.co/aNVGQqK35Z40 days ago
  • RT @AonRetirementUK: How prepared is your portfolio? Read a write-up of the discussions at our recent event with @portfolio_inst, along wit…43 days ago
  • "Shadow pensions minister Jack Dromey comments on the need to set compulsory standards for cost reporting." Read m… https://t.co/vH1gGZBm1q43 days ago


Whistleblower allegations raise questions on GAM’s leadership

Whistleblower allegations raise questions on GAM’s leadership

Mona Dohle
Wednesday 26th September 2018

Swiss group GAM has confirmed that the sudden suspension of one of its top portfolio managers during the summer was made after a whistle blower prompted an internal investigation.


Tim Haywood (pictured), former co-manager of the group’s £6.5bn flagship unconstrained absolute return bond fund (ARBF) range, had been suspended in July, following an internal investigation for several misconduct allegations, which include failure to comply with the group’s due diligence requirements and not collecting sufficient evidence on fund investments.

Haywood’s suspension resulted in the liquidation of the ARBF fund range and investors are now receiving a partial refund.

According to reports by Swiss financial newspaper finews, concerns over Haywood’s due diligence first emerged following investments in non-listed notes by Sanjeev’ Gupta’s GFG Alliance, aimed at financing energy businesses in the UK. Failures to launch these businesses in turn affected the liquidity level of GAM’s ARBF range.

Haywood’s investments in these notes over the past two years were executed by trade-finance firm Greensill Capital, which also employed former GAM chief executive David Solo.

GAM confirmed that an internal investigation over Haywood’s conduct had been launched in November 2017, following initial accusations by an anonymous whistle-blower. The group also revealed that the whistle-blower had expanded on their concerns in March 2018 and informed the Financial Conduct Authority. This in turn resulted in Haywood’s suspension four months later.

GAM group chief executive Alexander Friedman expressed his support for the whistle-blower. “At the heart of every modern financial services firm’s systems and controls should be a culture that encourages people to come forward with concerns about colleagues’ behaviour,” he stressed.

Yet Friedman’s role is increasingly being questioned, as GAM’s shares have dropped to an eight-year low in September, following a damning Credit Suisse analyst report which predict further outflows from other GAM funds.

GAM states that 60% to 75% of the ARBF fund assets have been returned to investors and that it has launched the second round of liquidation payments.

However, investors in the Cayman-islands domiciled ARBF fund range are expected to book significant losses as a result of the liquidation.

Both Haywood and his former co-fund manager continue to be listed as investment directors for GAM.

The Zurich-based group will release a Q3 interim management statement at the end of October.


Leave your comment

View our comments policy

Please login or register with us to leave a comment. It's completely free!