UBS has dropped a sub-advisor on a $ 113 million real estate fund, according to a filing with the Securities and Exchange Commission.

Brookfield Asset Management was removed from the PACE Global Real Estate Securities Investments fund, with MFS remaining the sole sub-advisor of the fund. Brookfield had co-led strategy alongside MFS, with each company responsible for half of the fund’s assets.

UBS and Brookfield did not immediately respond to requests for comment on the rationale for the changes to the fund, which features an expense ratio of 1.2%.

Jason Baine and Bernhard Krieg have been co-managers of Brookfield’s fund allocation since 2009. Rick Gable, who holds an AAA rating with Citywire, was MFS’s sole manager on the fund since March.

UBS changed its list of internal selectors on this fund and a dozen other funds in its PACE range in June.

UBS’s most recent prospectus for the fund acknowledged that the fund had its worst annual return in ten years last year, as well as its worst quarter: the fund lost 28.7% in the first quarter of 2020, a year after its best performance in recent years in the first quarter of 2019.

As a result, the fund’s assets have fallen since it stood at $ 137 million three years ago. Despite a relatively strong 2019 and a rebound so far in 2021, the fund has struggled with its lackluster 2020 and estimated net outflows of $ 42 million over the past three years, according to Morningstar data.

The fund’s strategy has been to invest in REITs and similar securities around the world, with the top 10 holdings making up about half of its portfolio. US holdings represented more than 50% of the fund’s portfolio as of June 30, followed by Japan and Hong Kong.

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