UBS Global Asset Management (UBSGAM) is in talks with two of the three key members of its Australian small caps team after they expressed their intention to leave.
The fund manager confirmed that it was in discussions with portfolio manager John Campbell and investment analyst Jeremy Bendeich.
“Nothing is finalised as yet,” the UBSGAM spokesperson said.
“They have expressed an intention that they might leave the firm. We are still discussing things with them.”
The spokesperson confirmed that portfolio manager Stephen Wood did not plan to leave.
Campbell, Bendeich and Wood look after the UBSGAM Australian Small Companies Fund, which last year won a mandate worth over $200 million from financial services group AMP.
The uncertainty over the small caps team has prompted research house Lonsec to place the strategy on fund watch, while Standard & Poor’s Fund Services put it on hold.
“Naturally we would be disappointed and view the departure of John Campbell and Jeremy Bendiech negatively,” Lonsec managed funds senior investment analyst Lin Ngin said.
“However, the subsequent ratings action also depends on what UBS does post any potential departure. A fund watch rating is a temporary rating and Lonsec will be monitoring the situation and make an assessment when further information comes to hand.”
S&P fund analyst James Gunn said the research house was monitoring the situation and would assess whether any further rating action is warranted once UBS provided further information.
According to a Morningstar spokesperson, the research house was in discussions with UBS about the implications for investors and advisers of the situation.
