The firm said it had entered a consultation period with Harte, who is left now with only a co-manager role on the Baring Global Bond Trust.
Barings said the behaviour of the bond and currency markets in the past few years had made it difficult to generate consistent and positive absolute returns using a long/short strategy.
It added that the economic environment is such that this would remain the case for the foreseeable future.
Since it was the only long/short strategy in the Barings range of onshore funds the firm has effectively moved away from the strategy altogether.
A statement from Barings said: "It has become clear that a wider, multi-asset opportunity set offers a better environment in which to deliver strong cash plus performance for our clients."
The Baring Absolute Return Global Bond Trust has underperformed its target over one month, three months, year to date and one year. Its annualised performance over three and five years and since inception also lags its benchmark.
Comparatively, the Global Bond Trust which Harte co-manages with Dagmar Dvorak has higher than target annualised performance over three, five and 10 years.
Its more recent performance over one month, three month, year to date and one year is below benchmark, however.
Meanwhile, Cole’s Multi-Asset Fund which launched in 2009 has also underperformed its benchmark over one month, three months, year to date and one year.
