Key Takeaways
- • New Jersey's pension fund returned an unaudited 14.82% in the fiscal year ended June 30, 2026, beating its 7% long-term assumed rate of return by 7.82 percentage points, according to the state Treasury Department.
- • 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 real assets portfolio returned 23.76% against a 13.33% benchmark.
- • The three-year annualized return now stands at 12.16%, marking the third consecutive year of double-digit gains.
- • The state budgeted a record $7.3 billion pension contribution for fiscal 2027, the 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.
Summary
New Jersey's pension fund earned 14.82% in the fiscal year that ended June 30, 2026, its third straight year of double-digit gains, the state Treasury Department said Wednesday. The unaudited return exceeded the fund's 7% long-term assumed rate of return by 7.82 percentage points, according to the Division of Investment's report to 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 equities contributing the most to overall performance. Emerging markets equities returned 39.53%, U.S. stocks 23.20% and international developed markets stocks 21.61%. The real assets portfolio returned 23.76%, outpacing its 13.33% benchmark by 10.43 percentage points. These results follow a 10.96% return in fiscal 2025, when emerging markets stocks gained 16.33%, U.S. stocks 15.21% and real assets 11.11%.
The investment results were paired with a record $7.3 billion pension contribution budgeted for fiscal 2027, the 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 the state's credit rating.
State Treasurer Aaron Binder described the results as "a huge step in returning the pension fund to solid ground," while 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. The figures remain unaudited until the fiscal 2026 audit is complete.
Every asset class in the portfolio posted positive returns, with public equities contributing the most to overall performance. Emerging markets equities returned 39.53%, U.S. stocks 23.20% and international developed markets stocks 21.61%. The real assets portfolio returned 23.76%, outpacing its 13.33% benchmark by 10.43 percentage points. These results follow a 10.96% return in fiscal 2025, when emerging markets stocks gained 16.33%, U.S. stocks 15.21% and real assets 11.11%.
The investment results were paired with a record $7.3 billion pension contribution budgeted for fiscal 2027, the 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 the state's credit rating.
State Treasurer Aaron Binder described the results as "a huge step in returning the pension fund to solid ground," while 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. The figures remain unaudited until the fiscal 2026 audit is complete.
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