Nebraska Investment Council is seeking to withdaw the $167m (€143m) it has invested in the Barings Core Property Fund and reinvest it in a fund managed by Clarion Partners.
The redemption, which is expected to take several months, will be added to an additional $60m commitment to the Clarion Lion Properties Fund.
The move has been recommended by the Investment Council’s real estate consultant, The Townsend Group, which set out the rationale in a board meeting report.
Townsend said there were other open-ended core property funds in the US that were more complementary to the Investment Council’s strategic investment goals.
The Clarion fund has been a strong performer in recent years, it said. On a one-year basis, the fund earned a 9.7% return compared with 8.4% posted by the ODCE Index.
Nebraska Investment Council, which manages state pension and endowment capital, has two other core real estate managers, UBS Asset Management and PGIM Real Estate.
Barings declined a request for comment.
