CHICAGO--(BUSINESS WIRE)--The following was issued by UNITE HERE:
Recent high-level departures since 2011 and a history of turnover at UBS Global Asset Management’s separate account business raises flags for investors.
UBS GAM has a total of $680 billion in assets under management. Over the past four years, departures of investment staff have been cause for concern for clients. In January, the Asia Pacific team lost Chairman John Fraser and others. Shawn Lytle, head of Americas unit, left around March.
Since 2011, UBS GAM lost 280 portfolio managers, analysts, traders and client services personnel, with details available for 46 individuals whose experience equaled 874 years.i UBS GAM has experienced personnel turnover on its asset management teams since 2011 at a rate higher than some peers.
Over the same period, peer asset managers had far less turnover. TIAA-CREF Asset Management, with $632 billion in AUM had a turnover of 45. Aberdeen Asset Management, with $504 billion in AUM had a turnover of 95.ii
Staff shake-ups have caused several investors to closely inspect their mandates with UBS, and in several cases move their assets. The report poses several questions investors may want to consider:
- With so many key-personnel departures, can investors be confident in the consistency and strategy of investments managed by UBS GAM?
- How might the recent departures of high level personnel affect investor’s assets?
- Given that staff turnover persists, are other investors considering terminating?
Read the full report here: http://www.pecloserlook.org/wp-content/uploads/UBS-Global-Asset-Management-Staff-Departures-62915.pdf
UNITE HERE is the union of workers in the hotel, gaming, and food service industries. Its 275,000 members are beneficiaries of pension funds with over $60 billion in assets.
i Evestment. UBS Global Asset Management as of March 31, 2014. Accessed June 2015.
ii Peer AUM from Pensions & Investments Research Center. Money Manager Ranking Data. Accessed online June 2015. Staff turnover figures from Evestment. TIAA-CREF Asset Manager as of March 31, 2014. Professional Turnover. Total departures 2011 – 2015. Accessed online June 2015.