Harold Baxter and Gary Pilgrim have resigned their top management positions in Pilgrim Baxter & Associates, following an internal investigation into market timing practices. The two founded the US-mutual fund group in 1982 and sold it three years ago to Old Mutual, the South African financial services group.

Baxter was chief executive and chairman. Pilgrim was president of the group's PBHG funds and PBHG Insurance Series Fund.