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PERS staff wins fee concession from Principal; UBS TPF chief investment officer to change
Summary
PERS staff reported a reduced fee breakpoint at Principal's core U.S. property fund (threshold cut from $750 million to $500 million, fee lowered from 73 bps to 70 bps) and said UBS TPF will name Larissa Belova as chief investment officer when Paul Canning retires July 1.
Jason Clark told the Investment Committee that staff negotiated a lower breakpoint and modest fee reduction with Principal Real Estate for the core U.S. property fund.
Clark said the fee breakpoint was lowered from $750 million to $500 million and the management fee at the $500 million level decreased from 73 basis points to 70 basis points, which reduces concentration risk and lowers ongoing fees for the PERS real‑estate allocation.
Separately, Clark reported that Paul Canning, long‑time UBS TPF lead, will retire effective July 1 and Larissa Belova will take over as chief investment officer. Clark said Belova joins UBS from CBRE, where she led a flagship core real estate program, and staff has spoken with her ahead of the transition.
Why it matters: The Principal fee breakpoint change reduces fees and concentration risk in a large real‑estate position. The UBS leadership change is a manager personnel note staff flagged for trustee awareness.
Less critical details: Staff thanked Principal and UBS for the cooperation and said they will continue to monitor implementation and manager transitions.
