US money managers are preparing another round of job losses, and are seeking to cut costs even further as investor redemptions show no signs of slowing.

Capital Group, the parent of one of the largest managers, American Funds, has told employees in an internal memo that it will eliminate more jobs, its third round of cuts in the past six months. The latest move is part of a cost-cutting plan that includes a freeze on pay rises, Capital said. It has already cut close to 600 people, or 6 per cent of its staff. Prior to the current crisis, the group had only cut jobs once in its 78-year history.