Staff at Goldman Sachs Asset Management have been ordered to cut non-essential costs and tighten their belts amid outflows and poor performance at the division.
Staff at the asset management unit of the US bank have been issued with a ban on non-essential travel and a warning to cut costs, reports the Financial Times.
Morningstar data shows that the asset manager’s US mutual funds have seen 15 months of outflows, with $17.5bn being withdrawn from the funds in the past 18 months.
GSAM’s flagship bond fund has also seen poor performance compared to peers over one and three years.
The call comes despite GSAM growing its overall assets under management by around $100bn in a year, to $900bn at the end of the first quarter.
A Goldman spokesman said: “Prudent cost management is important but we remain committed to serving our clients through active management and we believe we can grow the business over time by focusing on long-term performance, just as we have done in other areas.”