New Jersey’s Pension Fund Reports 10.96% Returns for FY2025

New Jersey's Pension Fund Reports 10.96% Returns for FY2025

(TRENTON) - New Jersey's Pension Fund generated a final, unaudited return of 10.96% for the 12-month period ended June 30, 2025, which is 3.96% above the long-term assumed rate of return, Treasury's Division of Investment reported during Wednesday's meeting of the State Investment Council.

This strong performance, coupled with the State's record pension payment of $7.2 billion for FY2026, will further strengthen New Jersey's Pension Fund. Contributions to the Pension Fund under Governor Murphy exceed $47 billion, nearly four times the $12.2 billion in total contributions of the previous six governors combined.

"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 State Treasurer Elizabeth Maher Muoio. "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," said Shoaib Khan, Director of the Division of Investments. "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 is managed through a diversified portfolio and a number of asset classes contributed in generating strong performance. Public Equity returns in particular stood out in Fiscal Year 2025. International Small Cap Equity delivered 24.0%; Non-U.S. Developed Market Equity delivered 18.9%; Emerging Markets Equity delivered 16.3%; and U.S. Equity delivered 15.2%. In Fixed Income, High-Yield delivered 9.9%. Within Private Markets, Real Assets delivered 11.1%; Risk Mitigation Strategies delivered 8.9%; and Private Credit delivered 7.7%.

The Division of Investment noted that performance numbers are unaudited pending completion of the Fiscal Year 2025 audit.