California State Teachers Retirement System (CalSTRS) has increased its allocation for real estate from 14% to 15%.

The allocation increase is in line with the $315bn (€312bn) pension fund’s previously disclosed long-term plan to increase its real estate target allocation which stood at 12% in 2019 to a 15% target.

CalSTRS said its real estate portfolio as of the end of May this year was valued at $49bn, representing 15.59% of the pension fund’s total plan assets.

The pension fund has a +/-3% allocation range set up for real estate to help reduce rebalancing costs and help adapt to changing market conditions.

CalSTRS is known for investing in a variety of strategies through separate accounts, joint ventures, funds and co-investments.

To read the latest edition of the latest IPE Real Assets magazine click here.

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