Morningstar cut its ratings of three funds run by UBS Group AG and Invesco, citing high staff turnover as a concern for performance, reports Bloomberg.
The researcher downgraded UBS (Lux) Equity Fund China Opportunity, UBS (Lux) Investment SICAV – China A Opportunity, and Invesco Greater China Equity Fund, according to a note on Wednesday. Morningstar said a loss of team members was the main reason for the ratings change.
A war for talent is heating up as global asset managers try to win a bigger slice of China’s mutual fund and wealth industry. Fund launches jumped by 32% to a record 1,906 in 2021, according to China Galaxy Securities Co. data, even as demand waned later in the year when volatility rose.