UBS Money Manager Leaves as $3 Billion Asia-Focused Fund Slumps
UBS Money Manager Leaves as $3 Billion Asia-Focused Fund Slumps
(Bloomberg) --
The UBS Group AG manager of a $3 billion Asia-focused fixed income fund that holds a large chunk of the lender’s exposure to China Evergrande Group debt is leaving the company.
Singapore-based Ross Dilkes is leaving after about 16 years at the Swiss bank’s asset management unit, a UBS spokesperson confirmed, without giving a reason for his departure. He is lead manager of the Asian High Yield fund, which was started about nine years ago. Dilkes didn’t immediately respond to a request for comment.
Dilkes’s fund has lost around 18% so far this year, with around half of its holdings in real estate, according to data compiled by Bloomberg. Its assets have shrunk by about $500 million since the start of September, the data show, as the debt crisis engulfing Evergrande fueled fears about Chinese property.
The Swiss investment bank is among the top five holders of Evergrande debt, according to data compiled by Bloomberg. UBS held around $274 million of Evergrande bonds as at Sept. 30, the data show, and that includes holdings in funds like Asian High Yield that invest client money. The fund also has sizable positions in Sunac China Holdings Ltd. and Kaisa Group Holdings Ltd.
Morningstar analyst Patrick Ge downgraded Asian High Yield following Dilkes’s departure, according to a report from the rating company Thursday. He said the exit and unclear succession plans “meaningfully reduces our conviction here.”
UBS’s Head of Global Emerging Markets and Asia Pacific Fixed Income Hayden Briscoe, who co-manages the fund, will take over as lead manager until a successor is found, according to Morningstar.
©2021 Bloomberg L.P.