Omaha School Employees Retirement System (OSERS) has cut its long-term target allocation to real estate by more than half.

The pension fund has reduced the target from 20.3% to 7.5%, according to a boarding meeting document.

Michael Walden-Newman, state investment officer for the Nebraska Investment Council, said: “This action was taken to align the allocations of the other pension and retirement plan assets managed by the Investment Council.”

The Nebraska Investment Council manages $23bn (€21.3bn) across 33 different investment programmes.

OSERS, which had $1.1bn in total assets at the end of last year, has begun reducing its real estate exposure by filing three redemption requests with three open-ended funds, worth a total of $75.1m.

It has issued a full redemption of its $11.3m holding in the JP Morgan Special Situation Property Fund, value-added fund.

OSERS will also be filing partial redemptions from two core funds, the JP Morgan Strategic Property Fund and the UBS Trumbull Property Fund.

Nebraska Investment Council has yet to decide how much capital will be redeemed, but is expected to make a decision within two months’ time.

OCERS has $30.1m invested in the $42bn JP Morgan Strategic Property Fund, and $34m in the UBS Trumbull fund.

OSERS and the Nebraska Investment Council was advised by investment consultant, Aon Hewitt.