In June, the California State Teachers' Retirement System (CalSTRS) reviewed its real estate investment policy and portfolio, and determined that up to 30 percent of its real estate portfolio should be allocated to real estate securities.

CalSTRS Investment Committee members cited REIT advantages such as access to outside capital, increased liquidity to moderate risk and relatively low correlation to other asset classes.

The fund will release a more detailed strategy plan, in conjunction with the Pension Consulting Alliance, in September. Currently, the CalSTRS fund holds approximately $1.6 billion in REITs separate from its real estate portfolio.