SACRAMENTO, CA-The California Public Employees Retirement System (CalPERS) is considering an increase of $1 billion for its hard-dollar caps for new investments in the annual delegation limits for real estate.

The change in the limits is for the real estate base core portfolio from a $6 billion cap to a $7 billion cap, and the total real estate portfolio from a $7 billion cap to an $8 billion cap.

Ted Eliopoulos, acting CIO at CalPERS, wrote in a board-meeting document that the current dollar cap for new investments in the real estate programme could impede the investment staff's ability to act on new investment opportunities and thus restrict the growth of the asset class.

The board was to discuss the proposal at a meeting earlier this week. There was not news of a decision as of the time of this posting.

The proposed increases would allow the real estate senior investment officer and the pension fund's CIO the delegated authority to act on investment opportunities and grow the assets class to its targeted allocation.

The existing cap limits have been in place for CalPERS since July 2011.

The value of the total fund has grown significantly since then and has resulted in the formula-based limits being surpassed by the hard-dollar limits.

The total real estate program now has a new investment hard cap of $7 billion, or 30% of the policy target.

Instant Insights /

CalPERS May Lift Investment Cap

Related Stories

Recommended For You