Pictet Asset Management's emerging markets team has lost its chief, Douglas Polunin, as well as senior managers Julian Garel-Jones and Paul Parsons.

Steps have already been taken to replace the three who are setting up their own investment outfit. Morgan Stanley Dean Witter's John-Paul Smith will take over from Polunin, who is leaving after 12 years, and the two will work together initially to ensure a smooth transition of the team.