AMP Capital Investors (AMP Capital) is currently looking for an external investment manager for its small companies portfolio. 

The decision to appoint an external manager follows an announcement in April, when AMP Capital decided to cut its small companies portfolio management team.

At the time, senior portfolio manager Michael Hughes left the firm to take up a job with Ord Minnett.

Hughes had been part of the firm's small companies team. The remaining analyst in that team, David Berton-Jones, was appointed to the fund manager's large-cap team.

The departure of Hughes followed a resignation in November last year, when head and co-manager of the Australian small companies team Gary Armor left the firm.

The small companies portfolio includes three funds: the AMP Capital Australian Small Companies Fund, the AMP Capital Australian Small Companies Fund A and the AMP Capital Australian Small Companies Fund H.

The AMP Capital Australian Small Companies Fund H, which previously had private clients as investors, is closed to new money.

"We remain committed to actively managing our Australian small companies portfolio," an AMP Capital spokesperson said.

"We are currently on the hunt for an external investment manager. However, no decision at this stage has been reached," the spokesperson said.

The firm's small companies portfolio is currently managed by head of the capital team and senior portfolio manager Greg Barnes.

Both Morningstar and Standard & Poor's had downgraded AMP Capital's Australian smaller companies capability following the departure of Hughes.