California State Teachers Retirement System (CalSTRS) expects to limit new commitments to real estate and infrastructure in the current fiscal 2024 year by selectively evaluating new opportunities.
As part of the pension fund’s business plan for the year that started on 1 July, CalSTRS said it intends to continue its investment pacing as well as selling of non-strategic assets within its $51.1bn (€46.2bn) real estate portfolio.
Proceeds from disposal are expected to be used as additional capital for new investments into new opportunities.
Around 77% of the pension fund’s real estate portfolio or $39.3bn of assets are in controlled investments where CalSTRS has investment discretion.
For infrastructure, CalSTRS expects to selectively make commitments through funds, separate accounts and co-investments.
Infrastructure, which sits within the pension fund’s $18.8bn inflation-sensitive portfolio, accounts for 53%.
Other investments within the portfolio include timberland, agriculture, commodities and US Treasury inflation-protected securities.
CalSTRS declined a request for further comment.
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