Are redemption requests reaching crisis proportions at UBS Trumbull?
Redemptions, key departures, and under-performance may be fueling a growing exit queue in the UBS flagship real estate fund
A new report from UNITE HERE examines recent redemptions, staff departures, and under-performance of the UBS Trumbull Property Fund.
- Since 2017, LPs have sought redemptions of over $1.3 billion from the UBS Trumbull Property Fund (“TPF”), according to public documents.
- As of December 2017, the UBS-TPF faced a redemption queue of $1.18 billion; at that time the entry queue was reported to be $0.
- In March 2018, the exit queue was reported to be $383 million while the entry queue $124 million.
- LP documents show that UBS TPF lost a net total of 31 investors between June 2017 and April 2018.
- UBS has reported staffing changes including the retirement of Lead Portfolio Manager Kevin Crean and Assistant Portfolio Manager Steve Olstein.
- UBS-TPF performance has trailed the NFI-ODCE benchmark in 9 of the past 10 quarters
Limited Partner Questions for UBS:
- What is the current value of the redemptions in the queue?
- What is UBSs policy on selling properties to fund redemptions?
- How does Trumbull Fund plan to fund the current queue and future redemptions if the queue grows?
- How was the approximate $800 million reduction in the exit queue between December 2017 and April 2018 funded?
- How will UBS ensure a smooth transition as the TPF team loses to senior portfolio managers?
- Is UBS Realty currently on watch for performance and staff change issues?