The Nebraska Investment Council is planning to invest $182m (€166.7m) in a core open-ended US real estate fund managed by Morgan Stanley.
In a meeting document, Nebraska Investment Council said the planned investment in the Morgan Stanley Prime Property Fund will replace a $167m investment being redeemed from the UBS Trumbull Property Fund.
Nebraska – which manages a number of state pension and retirement funds – said defined benefit/cash balance benefit funds will contribute $156m towards the commitment to the Morgan Stanley fund, a $12m contribution will be added from two different endowments within the state of Nebraska and a $14m investment will come from the Omaha School Employees Retirement System.
The Prime Property Fund, which has a $1.1bn entry queue, has outperformed the index by on average 195 basis for every time period from one to 10 years.
The fund had a net asset value of $26.3bn, as of the end of 2019.