The Oregon Common School Fund is considering allocating to real estate for the first time.
The $1.5bn pension fund is mulling a 7-10% exposure, according to a board meeting document.
The Common School Fund has some legacy real estate holdings in the state of Oregon, but these do not form part of a formal allocation.
The potential move came about through an asset allocation study by the pension fund and Callan Associates.
Callan has recommended the move on the basis that real estate can provide competitive returns with a strong income component, diversification and inflation protection over the short and long term.