California State Teachers' Retirement System, Sacramento, next Wednesday will consider approving an RFP for up to 12 real estate money managers to manage about $2.1 billion in real estate equity assets for the $88 billion fund.
Staff will ask trustees to allow the new managers investment discretion of up to $100 million per transaction.
Staff also will ask to be allowed to make the final selection of real estate managers, a task previously left to trustees.
Staff also wants to establish a pool of real estate managers that could replace any of the managers hired, but later terminated.
The RFP, if approved, is expected to be issued in October. Responses would be due at year end, and finalist interviews would be scheduled for February.
The fund's five incumbents are expected to compete for the new contracts. CalSTRS' target real estate allocation is 5% of assets; its current commitment is 2.1%.