CalSTRS' investment committee is scheduled to vote Thursday on a new policy for its $12.7 billion real estate allocation, including an increase in its core investments to 50% of the portfolio, according to the meeting agenda.
The core investments now comprise 30% of the real estate portfolio.
The $138 billion California State Teachers' Retirement System's proposed policy would also split its tactical allocations to a value added, at 20% of the portfolio, and opportunistic, at 30%.
The proposed changes follow a massive drop in value of more than 40% for the West Sacramento-based system's real estate investments in 2008-2009 fiscal year.
CalSTRS documents show that the system is trying to limit its holdings of higher-risk commercial properties to no more than 30% of its portfolio; the current policy allows as much as 70% in such investments.