His post, which takes effect immediately, comes less than six months after the Zurich-listed asset manager hired Peter Sanderson as CEO - another BlackRock veteran - to help revive investor confidence and draw a line under Hayward's sacking for alleged mismangement of the bond business - an allegation the star fund manager has vigorously contested. The affair has left the Swiss firm racking up successive poor quarters and speculation that it is being primed for acquisition.

Rafferty is joining after spending 16 years at BlackRock, most recently as global COO for the asset giant’s $2 trillion fixed income division. Reporting to Sanderson, he will be in charge of overseeing GAM’s day-to-day global business, the group said.

“Reducing complexity, as well as strengthening our core business and improving profitability, are fundamental to the future of GAM," Sanderson said. "Steve has a demonstrable track record in designing and implementing improvements across a global business and his appointment will further support us in achieving our objectives."