Pioneer Investments has announced two of its top bond managers have resigned with immediate effect after an internal investigation found they were in the process of establishing a rival asset management firm.
Head of European fixed income, Tanguy Le Saout, and head of portfolio construction, Ali Chabaane, were suspended last week following the investigation which, Pioneer claimed, revealed they had “acted against the commercial best interests of Pioneer” in seeking to launch a competing asset management business.
In a statement, Pioneer said in the resolution of its legal proceedings to protect its business interests, Le Saout and Chabaane had resigned with immediate effect.
It added on the 13 December the pair will consent to the orders of the Dublin High Court that effectively redress any advantage they might have obtained from seeking to launch a competing asset management business.
Pioneer stressed there had been no negative impact on client assets or accounts, no other investment professionals were involved, and that no regulatory breaches had occurred.
Two other unnamed human resources employees, associated with the actions of Le Saout and Chabaane, will also consent to the orders of the Dublin High Court and have also resigned with immediate effect.
Pioneer Investments chief executive and group chief investment officer Giordano Lombardo said: “Any actions that violate our corporate values of trust, loyalty and teamwork must be responded to, irrespective of the circumstances. We have taken decisive action in this instance in order to protect our commercial best interests and have ensured that no client assets were adversely affected and no compliance breaches took place.”
Pioneer veteran Cosimo Marasciulo, currently head of European government bonds, has been appointed as head of European fixed income to replace Le Saout and Declan Murray, currently global chief of staff for investments, has been appointed to provide guidance and leadership to the Portfolio Construction team.
The announcement comes on the day Pioneer Investments’ parent company, UniCredit, has signed a binding agreement with Amundi for the sale of Pioneer for €3.5bn (£2.94bn).
As part of the deal, UniCredit will receive a €315m pre-transaction dividend to be distributed by Pioneer and a 10-year distribution agreement for Italy, Germany and Austria in partnership with Amundi.
The transaction, which is expected to close in the first half of 2017, has been approved by the boards of directors of UniCredit, Pioneer and Amundi but is subject to customary closing conditions, regulatory and anti-trust approvals.
