GAM listed several reasons for suspending a star bond portfolio manager last week, a move which has sparked a major crisis for the Swiss asset manager.

Tim Haywood, the portfolio manager at the center of a scandal surrounding its flagship range of absolute return bond funds, was suspended over gifts and perks without asking GAM beforehand and using his personal email for work, the company said in a statement.

Haywood also signed some contracts alone, instead of seeking a backup, and didn't do adequate due diligence on some investments or make records accessible, GAM said.

The surprise suspension of GAM's absolute return bond star Haywood last week set a crisis into motion: investors have clamored to get their funds back, the shares have lost more than one fifth of their value since last week, and the company is thought to be telegraphing that it is open to a sale.

Financial Misdemeanor 

GAM reiterated that it had not found any violation of client interests, but is «keeping this under review». Haywood wasn't found to be crooked – or «motivated by an improper rationale in making investment decisions», in GAM jargon – nor to have a conflict of interest, the company said.

Haywood's very public suspension represents a highly unusual step, particularly as the company sparked a withdrawal frenzy as a result. Travel, gifts, and personal email use would typically rank as a misdemeanor in the annals of financial scandals: more likely to warrant a slap on the wrist, not a public investigation involving an outside law firm. 

Rushing for Exits

GAM said it has the wherewithal to pay redemption requests, but that it won't immediately do so because it would dramatically skew the portfolio makeup. Redemption requests from in its absolute return range topped 10 percent since last week, the company said. 

The asset manager also added a disclosure likely meant to quell fears of a wider crisis: GAM said it is carrying no debt, and has nearly 328 billion Swiss francs ($329.5 billion) in cash at hand. It is in the process of calculating what its absolute return investments are worth with State Street, its funds administrator.