UC Endowment boosts real assets allocation by 2%
The University of California General Endowment Pool has increased its real assets target weighting by 2% and integrated real estate into the allocation.
The move, revealed in a board meeting document, will give the $10.6bn (€9.06bn) investor an additional $213m to invest in real assets.
The real estate portfolio was valued at $505m at the end of March this year and real assets portfolio – before including real estate – stood at $215m.
The UC Endowment invests mostly in domestic real estate, although its investment policy allows an allocation to foreign property of up to 25%.
It has flexibility in terms of strategy and levels of risk: it can allocate 10-40% to core investments, 10-80% to value-added strategies and 10-50% to opportunistic funds.
It favours office, industrial, retail and apartment assets, but is able to invest in specialist markets such as hotels and studen housing.
The endowment is also able to invest in a variety of structures, including funds, separate accounts, club deals and co-investments.