The $191.4 billion California State Teachers’ Retirement System has reduced its target returns for value-added and opportunistic real estate investments by approximately 3 percent, according to recent meeting documents.

The Townsend Group, CalSTRS’ real estate consultant, is projecting an annual return of 7.5 percent for value-added properties and 10.0 percent for opportunistic, down from 9 percent to 12 percent and 13 percent, respectively.

In addition, Townsend recommended the pension fund increase its real estate allocation to 60 percent for core properties and reduce value-added from 30 percent to 20 percent. The opportunistic allocation remains at 20 percent.

According to meeting documents, the pension fund believes these changes will help to lower risk and provide stable cash flows.

CalSTRS recently committed approximately $756 million to four international real estate funds.

The biggest commitment comes in the form of $500 million to The