The Connecticut Legislature passed a bill that would exempt REITs as stocks and permit the State of Connecticut Trust Funds to make a significant investment in publicly traded REITs without disrupting the pension fund's asset allocation.
The $18 billion Hartford-based pension fund has a 55% cap on equities. When equity investments exceed the cap, the state treasurer must take profits and rebalance.
``This bill makes it clear that REITs are considered real estate investments,'' said State Treasurer Paul Silvester, sole trustee. The bill awaits Gov. John Rowland's signature.