Sector Investment 8 Hours

Last updated: March 26, 2026, 5:30 PM ET

Real Estate Allocation & ESG

Shifting capital toward non-core strategies by Cal PERS over the last two years appears to be paying dividends, as the pension giant now anticipates higher real estate returns following the allocation adjustment. This move toward specialized assets mirrors broader investor sentiment, evidenced by LaSalle successfully closing its inaugural global ‘brown-to-green’ real estate fund at $370 million, demonstrating strong appetite for decarbonization mandates even in a challenging funding environment Investors still have room for decarbonization strategies.