Two of Australia’s largest fund management businesses face turmoil after rating agencies Standard & Poor’s and Lonsec have refused to rate their key products. The decision by S&P and Lonsec follows a series of senior management departures from the two funds – UBS Asset Management and Colonial First State. The rating agencies have said that they will not resume their work on their managers until the staff position is clearer. This has effectively blocked the flow of new funds into the businesses. S&P late last week urged big super fund investors to hold new investments in 24 funds run by Colonial First State Global Asset Management - mostly Australian large-cap funds run by its GDP Plus team. Lonsec has issued a watch note on three share-related funds. "This is in response to the resignation of senior portfolio manager, Jim Taylor, and CFS's decision that head of Australian equities Simon Shields would not have his contract renewed," S&P said in a statement to the market. "S&P's decision to put all the funds 'on hold' reflects our ongoing concerns with the GDP Plus team in its inability to retain senior personnel, particularly at the portfolio manager level," said S&P fund analyst Jane Wu. Also on hold from S&P and Lonsec is UBS's Australian Share Fund, where Mr Shields will take over after 30 June from former fund head Paul Fiani, who has left the firm. Mr Fiani's former deputy Shawn Burns is reported to have handed in his resignation on Friday over the appointment of Mr Shields to replace Mr Fiani. According to Aviva Research, this latest departure makes the transitioning task more difficult for UBS, prompting it also to place the fund on hold. S&P's Ms Wu said that the agency "would like to see how Mr Shields will characterise his approach at UBS and any potential changes to the investment process. S&P does view this as a key change in management". In January, Colonial First State's global property team left to set up their own funds management business. Earlier this month Credit Suisse hired a three-person Australian shares team from ING after Credit Suisse lost key staff to other institutions.