Search
 

CalPERS May Up Foreign Real Estate Allocation

SACRAMENTO-The pension fund considers increasing its international real estate allocation from its current 20% level ($4 billion) to a 50% weighting ($10 billion).

By Brian K. Miller | Updated on September 03, 2007

SACRAMENTO-The California Public Employees Retirement System is considering a significant increase in international real estate investments. On the advice of PCA Real Estate Advisors, the staff of CalPERS Investment Committee is recommending that its international real estate allocation be bumped from 20% of its total real estate allocation to 50%, which in dollars would take it from approximately $4 billion to approximately $10 billion.

The reasoning behind the increased allocation is two-fold. First, PCA and Investment Committee staff agree that international fundamentals appear more attractive compared to the US on a relative basis and, two, they agree that CalPERS portfolio should better reflect the fact that the US represents only 20% of the global GDP and 30% of the global real estate market.

As part of the strategy, the structure of its real estate portfolio would be simplified into three basic categories–Core, Value-Add and Opportunistic–each of which would have US and International subcategories that would be further broken down by property type. Currently, there is a separate International category.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.