New Jersey’s Pension Fund reported an unaudited return of 10.96% for the fiscal year ending June 30, 2025, according to the Division of Investment at a recent State Investment Council meeting. This result is nearly four percentage points higher than the fund’s long-term assumed rate of return.
The fund’s performance comes alongside a record $7.2 billion pension payment for fiscal year 2026. Under Governor Murphy, total contributions to the pension fund have surpassed $47 billion, which is almost four times greater than the combined $12.2 billion contributed by the previous six governors.
“These performance results, which follow double digit returns in FY2024, are a testament to the professionalism and hard work of our team at the Division of Investments and oversight of the State Investment Council,” said an official from Treasury’s Division of Investment. “Strong investment returns coupled with the Administration’s commitment to making the full actuarially determined payment over the past five years have put the State’s pension fund back on more solid footing, a fact that has been at the center of our recent credit rating upgrades.”
“I am delighted with the Fiscal Year 2025 performance and proud of the team effort that went into delivering these results for the beneficiaries of the pension fund,” another official stated. “The strong risk adjusted returns would not be possible without their dedication and diligence. Additionally, the State Investment Council plays an important role in the process and I am grateful for their trust, support and guidance.”
The pension fund achieved its results through a diversified portfolio across several asset classes. Notable performances included International Small Cap Equity with a 24% return, Non-U.S. Developed Market Equity at 18.9%, Emerging Markets Equity at 16.3%, and U.S. Equity at 15.2%. In fixed income investments, High-Yield returned 9.9%. Within private markets, Real Assets returned 11.1%, Risk Mitigation Strategies yielded 8.9%, and Private Credit delivered a return of 7.7%.
Officials noted that these figures remain unaudited until completion of this year’s audit.
