University of California increases real estate allocation
1 Some investors are increasing their allocations to real estate. The Regents of the University of California have increased the target allocation to real estate for the university system’s $3.2 billion Retirement Plan and $516 million General Endowment Pool. The increase to 7 percent from 5 percent was voted on at a board meeting in May and means an additional $650 million can be directed to real estate. The University of California Retirement Plan has 45 percent of its real estate portfolio invested in core assets, 37 percent in value-added assets and 18 percent in opportunistic assets. The University of California General Endowment Pool has 39 percent in core real estate, 38 percent in value-added real estate and 23 percent in opportunistic real estate. Both primarily invest in U.S.-focused funds.