GLOBAL - The California State Teachers Retirement System (CalSTRS) is planning to send out a Request for Proposal for core managers within the next 12 months.

The actual timing and amount to be allocated for the search has not been finalised at this time. 

This will be done in conjunction with its real estate consultant, The Townsend Group.

The pension fund discussed the request at its 8-9 July board meeting as part of its business plan for real estate - approved for the 2010-11 fiscal year.

The pension fund is currently underweight core assets. 

Its existing real estate portfolio has a core component of 30%, while its real estate investment policy calls for 50% core.

CalSTRS currently has existing relationships with 14 core managers, including CB Richard Ellis Investors, Principal Real Estate Investors and Heitman.

It said it was planning to stick with managers for its value-added and opportunistic strategies.

Pension fund officials said CalSTRS would be looking at its overall real estate portfolio in the coming months to see where new expertise in certain segments of the market might be needed.

CalSTRS has decided not to allocate a specific amount of capital for investing in real estate over the next 12 months. 

According to officials, it will move capital into the market as opportunities arise, not as the calendar dictates.