Nebraska Investment Council, Lincoln, committed $211 million to Clarion Lion Properties Fund, an open-end core real estate fund managed by Clarion Partners, Michael Walden-Newman, state investment officer, said in an email.
The council, which oversees $26.9 billion, including $12.2 billion total for five defined benefit plans and a $2.1 billion cash balance plan, approved the commitment at its Thursday meeting. Of the total commitment, $151 million will come from a redemption of an investment in the Barings Core Property Fund and $60 million from existing capital. The council approved a full redemption from Barings' fund because real estate consultant Townsend Group in a memo said it believes "there are higher conviction strategies ... that are more complementary to the strategic goals" of the plans.
As of June 30, the actual allocation to real estate in the cash balance plan and defined benefit plans was 6.1%; the target is 6%.