CalPERS

Real Assets Glossary

This Glossary identifies, defines, and clarifies the meaning of investment terms used by CalPERS in our investment policies. The purpose of the Glossary is to establish a uniform vocabulary of terms for users of these policies.

Choose from the letters below to find a specific Real Assets Investment Policy term or phrase. You'll also find information about the related policies and asset classes for each term.

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C


Carbon Sequestration - The accumulation and storage of elemental carbon.

Related Policy


Chief Investment Officer - Heads the CalPERS Investment Office and works with the Investment Committee to develop a long-term investment policy and asset allocation strategy for the Public Employees' Retirement Fund.

Related Policy


Co-investment - Co-investments are investments alongside Commingled Fund investments. Co-investments may be directly or indirectly owned and managed. Whereas Managed Co-investments may be managed by a general partner or other external manager, Direct Co-investments typically involve a greater degree of internal management discretion and ownership control. Co-investments may be investments in the same security or a different class of security than the class held by the fund investment.

Related Policy


Commingled Fund - An investment vehicle that pools individual accounts of multiple investors, which includes CalPERS. Each account holder owns units of the commingled fund similar to holding shares in a mutual fund.

Related Policy


Community Center - Retail property that serves customers residing within a three-to-six mile radius. Community shopping centers offer general merchandise and provide convenience for consumers by supplying groceries, drugs, and other services. The size range is typically 100,000-350,000 square feet of shopping area. The projects typically incorporate at least and two or more anchors tenants.

Related Policy

  • No related policies

Continuing Care Retirement Community - Continuing care retirement communities refer to senior housing properties that provide a full continuum of care to meet the changing needs from independent living to nursing care.

Related Policy

  • No related policies

Convertible Mortgage - An investment structure wherein the lender (CalPERS), receives mortgage interest and an option to convert a portion or all of the loan balance into equity.

Related Policy

  • No related policies

Convertible Participating Mortgage - An investment structure wherein the lender's (CalPERS) return consists of mortgage interest plus potential contingent interest, expressed as a percentage of property operating cash flow and/or property appreciation upon sale or refinancing, and where the lender has an option to convert a portion or all of the loan balance into a percentage of equity.

Related Policy

  • No related policies

Corporate Actions - An action taken by a company that causes a material change in structure including, but not limited to, name, price, shares, capitalization, or other such events. Typical corporate actions include tender offers, mergers, Dutch auctions, and spin-offs.

Related Policy

  • No related policies

Credit Accommodation - The term generally refers to a guaranty executed by CalPERS whereby CalPERS agrees to pay the debt obligation of an entity, in the event the entity fails to pay the debt obligation. The entity will usually be a limited partnership or limited liability company, and will be majority-owned by CalPERS. The debt obligation that CalPERS guarantees will be evidenced by an extension of credit (e.g., loan, line of credit, or other form of credit facility) by a financial institution to the entity. The benefit provided to CalPERS is that the guaranty will tend to lower the borrowing cost for the entity and should, in turn, enhance the overall return to the real estate investment. Guarantees become a contingent liability on the CalPERS' overall balance sheet and should be used only when they provide economic benefit. Credit accommodation differs from credit enhancement in that a credit accommodation is not rated and does not use CalPERS' Credit Enhancement Program (CEP) rating (either implied or explicitly). In addition, Credit Accommodation is made for an entity in which CalPERS has an existing, or proposed, ownership interest. Credit enhancement is the use of CalPERS' balance sheet, through the program rating, in which CalPERS has no initial ownership interest and where CalPERS receives explicit consideration for the enhancement.

Related Policies


Credit Accommodation Outstanding - The total amount of credit accommodation that is currently being utilized on investments.

Related Policy


Custodian - A bank or other financial institution that provides custody of stock certificates and other assets of an institutional investor.

Related Policies