Research house Standard & Poor's Fund Services (S&P) has downgraded the UBS Australian Small Companies fund from four to three stars after the departure of two team members.
In April, UBS Global Asset Management (UBSGAM) small caps team portfolio manager John Campbell and investment analyst Jeremy Bendeich indicated they were leaving the three-member investment team and started up a boutique funds management firm, Avoca Investment Management, with the support of Bennelong Funds Management.
S&P placed the fund on-hold following the departure of the two members.
"While UBSGAM has been quick to hire the experienced professional Victor Gomes to support incumbent member Stephen Woods, the team is currently operating at below its previous resourcing level while the business actively seeks a third team member," S&P analyst John Huynh said.
"I suppose we are on the conservative side."
He said Woods and Gomes were experienced and capable investors, but had not worked together as a team before.
"They are a new co-portfolio manager combination and their time working together is relatively limited. We look for the pair to establish a strong working relationship and build a solid track record as a team," he said.
