Nebraska Investment Council is proposing two new core open-ended real estate fund managers for the Omaha School Employees Retirement System (OSERS) to help the pension fund increase its exposure to industrial real estate.
Nebraska, which manages a number of state pension and retirement funds, said in a meeting document that it is planning to recommend that OSERS redeems its $15.2m (€12.8m) from the JP Morgan Strategic Property Fund and reinvest into the Clarion Partners Lion Properties Fund.
In the meeting document, Nebraska also calls for a new $15m commitment to PGIM Real Estate’s flagship open-ended core property fund PRISA I.
The Townsend Group, Nebraska’s real estate consultant, said the Lion Properties Fund has outperformed the NFI-ODCE index over the 1,3,5,7 and 10-year investment periods.
The Lion Properties Fund’s performance is helped by its industrial sector overweight, strong performing office assets in major gateway markets in the US, growing exposure to lab sciences and underweight to retail with no exposure to regional and super-regional malls.
The PRISA I has been a strong performer in all time periods of the ODCE Index. The near-term performance has been led by the fund’s overweight to both industrial assets and self-storage and no major malls in the portfolio.
OSERS has a $12.8m investment in the open-ended Morgan Stanley Prime Property Fund.
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