Pension fund deployment to private equity slightly under target in Q2

Global pension funds were slightly below their aggregate median target allocation to private equity in the second quarter.

The median target allocation across 338 pension funds worldwide was $279.9 million, and the median actual allocation was $269.7 million, S&P Global Market Intelligence data shows. This suggests that, in total, pension funds had a $10.2 million net underallocation to private equity as of July 1.

The underallocation as of the end of the second quarter grew from the $3.6 million net underallocation to private equity as of April 2.

Over and under

New York State Common Retirement Fund continued to have the largest overallocation among pension funds, at $12.31 billion.

Canadian pension fund Public Sector Pension Investment Board came in second with a $6.3 billion overallocation.

– Download a spreadsheet with data in this story. – Read about healthcare sector risks in the second quarter. – Read about private equity investments in the real estate sector.

Mexican fund Afore XXI SA de CV recorded the largest underallocation, which was $9.27 billion short of its $12.36 billion target.

Sjunde AP-fonden had the second biggest underallocation. The Swedish pension fund had an $8.56 billion target and an actual allocation of $3.42 billion.

Top allocators

California Public Employees' Retirement System recorded the largest private equity allocation at $78.26 billion. California State Teachers' Retirement System followed with $51.94 billion.

Brazilian fund Instituto de Previdência Dos Servidores Públicos do Município de Assis recorded the lowest allocation to private equity at $180,000, against its $550,000 target.