Nebraska Investment Council, Lincoln, committed $181 million to Morgan Stanley Prime Property Fund, said Michael Walden-Newman, state investment officer, in an email.
The council, which oversees $28.7 billion in total assets, approved the commitment to Morgan Stanley Investment Management's open-end core real estate fund at its meeting Thursday.
The commitment is for the council's five defined benefit plans, which have a total of $12.9 billion in assets, its cash balance benefit plans totaling $2.2 billion, its $949 million 50/50 endowments, its $423 million health-care endowments, and the $1.3 billion Omaha School Employees Retirement System.
At its December meeting, the council approved the full redemption of its $181 million investment in the UBS Trumbull Property Fund, managed by UBS Asset Management. The Townsend Group, which serves as the council's real estate consultant, recommended the redemption, citing poor performance, according to board documents.
The UBS redemption is expected to take "some time given the current UBS queue," Mr. Walden-Newman said in the email.
In a memo to the council in December, Townsend said UBS estimated it will take two to three years to satisfy its exit queue, which stood at $4.3 billion as of September.
A representative from UBS could not immediately be reached for comment.