TRENTON, N.J. — New Jersey’s pension fund earned 14.82% in the fiscal year that ended June 30, its third straight year of double-digit gains, as emerging markets stocks surged and real assets far outpaced their benchmark, state Treasury officials said Wednesday.
The unaudited return beat the fund’s 7% long-term assumed rate of return by 7.82 percentage points, the Treasury Department’s Division of Investment reported at a meeting of the State Investment Council. The fund’s three-year annualized return now stands at 12.16%.
Every asset class in the portfolio posted positive returns, with public stocks contributing the most to overall performance. Emerging markets equities led with a 39.53% gain, followed by U.S. stocks at 23.20% and international developed markets stocks at 21.61%.
The fund’s real assets portfolio returned 23.76%, beating its 13.33% benchmark by 10.43 percentage points.
The results build on a 10.96% return in fiscal 2025, when emerging markets stocks gained 16.33%, U.S. stocks 15.21% and real assets 11.11%.
State officials paired the investment gains with a record $7.3 billion pension contribution budgeted for fiscal 2027. It is the state’s sixth consecutive full payment and the first under Gov. Mikie Sherrill. Treasury said Kroll Bond Rating Agency cited the payment as one reason for its recent upgrade of New Jersey’s credit rating.
“The strong results over the past three years, along with the administration’s commitment to making the full payment, represent a huge step in returning the pension fund to solid ground, and helps protect the pensions of the hard-working men and women who rely on it in retirement,” state Treasurer Aaron Binder said.
Shoaib Khan, director and chief investment officer of the Division of Investment, credited the division’s staff and the State Investment Council, which sets the fund’s asset allocation and investment policies.
“For the third year in a row, the Pension Fund has reached double digit returns, which is a testament to the knowledge, dedication and professionalism of the staff at the Division of Investment,” Khan said.
The figures will remain unaudited until the fiscal 2026 audit is complete, the division said.
This report is based on a press release from the New Jersey Department of the Treasury.
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