Kansas Employees votes to redeem $240m from Trumbull funds

Kansas Public Employees Retirement System (PERS) is planning to redeem a total of $240.4 million from two funds managed by UBS Realty Investors.

The redemptions were approved at the pension fund's January meeting, Kristen Basso, communications officer for KPERS, confirmed in an email.

Kansas PERS will redeem $205.4 million from the UBS Trumbull Property Fund and $35 million from the UBS Trumbull Property Growth and Income Fund. According to Basso, the system invested $30 million in the latter fund in 2011. Today it is worth about $70 million.

"We will redeem approximately $35 million in order to redistribute," said Basso. "I anticipate an investment recommendation in March, but that is not certain at this point."

The UBS Trumbull Property Fund has been on probation for underperformance. The board authorized a full redemption in the amount of $205.4 million because the fund's relative performance has failed to meet KPERS' performance goals.

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