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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R


Real Estate Consultant - A consulting firm hired by the Committee to advise the Committee on Real Estate issues. The Real Estate Consultant reports to the Committee.

Related Policy


Real Estate Delegation Resolution - A separate resolution and document that conveys authority from the Investment Committee to Staff to execute investment transactions that comply with guidelines.

Related Policy


Real Estate Investment Trust (REIT) - Refers to a private or publicly traded company which typically invests in income-producing properties and which qualifies as a REIT under Sections 856-860 of the Internal Revenue Code of 1986. As a REIT, a company must distribute to its shareholders at least 95 percent of its taxable income and is not subject to federal (and typically state) income tax to the extent income is distributed, among other requirements.

Related Policy

  • No related policies

Real Estate Manager - A firm hired to manage a real estate portfolio (typically public securities) for CalPERS.

Related Policy


Real Estate Operating Companies - Companies with revenue derived from real estate services such as property management, brokerage, construction, development and investment management.

Related Policy


Real Estate Partner - A firm which acts as the general partner or investment manager in a separate account or commingled fund in which CalPERS has an investment.

Related Policy


Real Estate Strategic Plan - A multi-year plan that describes how the Real Estate Unit and Portfolio will be structured, staffed, and managed. The plan also addresses how to invest, where to invest, and how much to invest. Additionally, the plan states the objective and role of CalPERS overall investment portfolio.

Related Policy


Real Rate-of-Return - A nominal return adjusted to exclude the impact of inflation.

Related Policies


Reconstitution - The screening which occurs periodically for potential additions or deletions to the index. The screening examines the market capitalization of Real Estate Investment Trust (REIT) stocks, their content, concentration of ownership and position in the market sector. Stocks which no longer meet the criteria of the REIT index according to this policy will be eliminated from the index while new stocks which have qualified in the past year are included. A tolerance level will be applied to stocks which have dropped from the index since the past year in order to minimize transactional costs.

Related Policies


Recourse Debt - Recourse debt is debt for which CalPERS has the obligation (direct or indirect, absolute or contingent) to pay the debt to the lender.

Related Policy


Recourse Debt Allocated - The amount of recourse debt which has been allocated to an investment strategy and may or may not have been drawn or utilized to date.

Related Policy


Regional Mall - A retail property that serves customers residing within a large trade area, often spanning a five to 15-mile radius. Regional malls emphasize current fashion goods spanning the general, apparel, home furnishings and other merchandise categories. The size range is generally 400,000-800,000 square feet. The projects typically feature two or more anchors. The anchor chains may lease their stores from the mall owner or may own them independently and operate subject to a reciprocal easement agreement with the mall owner.

Related Policy

  • No related policies

Retail - Multi-tenant or single tenant buildings where tenants sell goods, food, services, or entertainment. Includes enclosed malls, open air malls, power centers, neighborhood centers and street retail. Also includes theaters and entertainment centers. Development projects (vertical construction) which are primarily retail are included in this category.

Related Policy


Return Deviation - The difference between the total return of a portfolio and the total return of the benchmark index.

Related Policy

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Right of First Offer - Within the context of a joint venture, this is a right giving one owner of a property or position (Owner A) a first chance to buy the property or position if another owner (Owner B) decides to sell. If Owner A refuses to make an offer, the property or position can then be sold to a third party. If Owner A makes an offer and Owner B rejects the offer, the property or position can be sold, generally limited to a price no less than the Owner A offer, or some negotiated percentage of the offer from Owner A.

Related Policy

  • No related policies

Right of First Refusal - Within the context of a joint venture, this is a right giving one owner of a property or position (Owner A) a first chance to buy the property or position if another owner (Owner B) decides to sell. Owner B must have a legitimate offer with specific terms and conditions, which Owner A has the option to match, consummating the purchase of the property or position. If Owner A refuses, the property or position can then be sold under said terms and conditions.

Related Policy

  • No related policies

Risk Adjusted Rate of Return - The total return adjusted for volatility of returns over time. That is, for two investments having an equal total return over an investment period, that investment which experiences the least volatility of returns has the higher risk-adjusted rate of return. The standard calculation of risk-adjusted rate of return is the "sharpe ratio," defined as the difference between the investment return and the average T-Bill rate over the same period, divided by the standard deviation of the investment return over the period.

Related Policy

  • No related policies