Key Takeaways
- • UBS wealth management gatekeepers have replaced MFS Investment Management with Cohen & Steers as sole subadvisor for the $56 million PACE Global Real Estate Securities Investments fund (PREQX), effective immediately per SEC filing.
- • The incoming Cohen & Steers team—Rogier Quirijns, William Leung, Ji Zhang, Jon Cheigh, and Jason Yablon—will replace Richard Gable and Mark Syn, who managed PREQX since 2021 and 2022 respectively.
- • PREQX has underperformed its category, delivering a 5.38% three-year annualized return versus 8.49% average for Global Real Estate funds, while Cohen & Steers' flagship $2.3 billion Global Realty Shares fund (CSSPX) posted 8.67% over the same period.
- • The PACE suite consists of 14 subadvised funds totaling $5 billion, available exclusively to UBS wealth management clients and overseen by Fred Lee, head of manager research and selection.
Summary
UBS has executed a subadvisor transition on its PACE Global Real Estate Securities Investments fund, replacing MFS Investment Management with Cohen & Steers in a move that reflects performance concerns within the $56 million vehicle. According to SEC filings reviewed by Citywire, the change positions Cohen & Steers' established real estate team as sole manager, marking a significant reshuffling of UBS's gatekeeping priorities within its exclusive wealth management platform.
The performance gap between PREQX and its peer group has been material. Over the trailing three years, PREQX returned 5.38% annualized, trailing the Global Real Estate category average of 8.49% by 311 basis points. This underperformance prompted UBS gatekeepers to seek alternative management expertise. By contrast, Cohen & Steers' flagship vehicle, the $2.3 billion Global Realty Shares fund (CSSPX), has delivered 8.67% annualized returns over the same period, positioning the incoming team as a proven alternative within the real assets space.
The incoming Cohen & Steers cohort—Quirijns, Leung, Zhang, Cheigh, and Yablon—brings substantial institutional real estate expertise to PREQX. Their appointment displaces the prior management team of Richard Gable and Mark Syn, who have overseen the fund since 2021 and 2022 respectively. This represents a full transition rather than a co-advisory arrangement, signaling UBS's confidence in Cohen & Steers' standalone capability.
The PACE suite, overseen by Fred Lee, encompasses 14 subadvised funds with approximately $5 billion in assets under management. These vehicles are offered exclusively to UBS wealth management clients, reflecting UBS's strategic approach to subadvisor curation for high-net-worth portfolios. The transition signals UBS's willingness to restructure underperforming allocations within its proprietary fund ecosystem.
The performance gap between PREQX and its peer group has been material. Over the trailing three years, PREQX returned 5.38% annualized, trailing the Global Real Estate category average of 8.49% by 311 basis points. This underperformance prompted UBS gatekeepers to seek alternative management expertise. By contrast, Cohen & Steers' flagship vehicle, the $2.3 billion Global Realty Shares fund (CSSPX), has delivered 8.67% annualized returns over the same period, positioning the incoming team as a proven alternative within the real assets space.
The incoming Cohen & Steers cohort—Quirijns, Leung, Zhang, Cheigh, and Yablon—brings substantial institutional real estate expertise to PREQX. Their appointment displaces the prior management team of Richard Gable and Mark Syn, who have overseen the fund since 2021 and 2022 respectively. This represents a full transition rather than a co-advisory arrangement, signaling UBS's confidence in Cohen & Steers' standalone capability.
The PACE suite, overseen by Fred Lee, encompasses 14 subadvised funds with approximately $5 billion in assets under management. These vehicles are offered exclusively to UBS wealth management clients, reflecting UBS's strategic approach to subadvisor curation for high-net-worth portfolios. The transition signals UBS's willingness to restructure underperforming allocations within its proprietary fund ecosystem.
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