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Laxman Pai, Opalesque Asia: Global pension funds allocation to private equity under target for the first quarter of 2023, said a study.
According to S&P Global Market Intelligence and Preqin, the pension funds ended the first quarter slightly under-allocated to private equity compared to their targets, an indicator of the challenging investment environment.
"Across 365 global pension funds, the median target allocation was $280 million and the median actual allocation was $276 million, suggesting that in the aggregate, pension funds have a $4 million net under-allocation to private equity as of March 28," said the study.
The global pension funds analyzed represented a wide variation in allocations to private equity. In terms of actual allocations to private equity, the two California pension funds - California State Teachers' Retirement System and California Public Employees' Retirement System (CalPERS) - had the largest amounts at $46.73 billion and $46.26 billion, respectively.
CalPERS had the largest under-allocation, falling $11.34 billion short of the target, likely a result of a recent target increase to private equity.
"Private equity is the highest performing asset class in the CalPERS portfolio and its allocation was increased from 8% to 13% starting with the 2022-23 fiscal year," CalPERS said in a January statement.
The lowest actual allocation was $1 million from Burlington Employees' Retirement System. ...................... To view our full article Click here
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