Ohio Bureau of Workers Compensation Board (BWC) is considering a fee discount offered by UBS Asset Management designed to dissuade investors from leaving the UBS Trumbull Property Fund.

According to a board meeting document, Ohio BWC’s investment staff and real estate consultant, RVK, have recommended approving a resolution to accept the 25% reduction in management fees being offered by the $22.7bn (€20.6bn) open-ended core US real estate fund.

Ohio BWC’s board is scheduled to vote on the resolution on 27 February.

The provider of workers’ compensation insurance, which has a $322m investment in the fund, said it had issued a $75m redemption in the third quarter of last year and had so far received $42m.

According to the board meeting document, the fee reduction offered by UBS Asset Management is to encourage investors to cancel redemption requests and to commit to not submitting new requests for a period of three to four years.

UBS is offering the discount to all limited partners in the fund.

As previously reported, the Vermont Pension Investment Committee agreed to take a fee discount in relation to its $217.1m investment in the fund.

Last month, IPE Real Assets reported that the Trumbull fund’s $3.1bn exit queue had nearly doubled since June 2019 as a result of redemption requests from investors, including the San Diego City Employees Retirement System, which said it was planning to redeem its investment due in part to underperformance and to rebalance its portfolio.

Nebraska Investment Council and Kansas Public Employees Retirement System also issued redemption requests.

UBS Asset Management declined a request for comment.

The company recently made changes to its US real estate leadership, with Matt Johnson and Rod Chu coming in as head of US real estate and head of US transactions, respectively.