Key Takeaways
- • New Jersey's Pension Fund generated a final, unaudited return of 14.82% for the 12 months ended June 30, 2026, 7.82 percentage points above its long-term assumed rate of return, according to Treasury's Division of Investment.
- • The result marks the third consecutive year of double-digit returns, lifting the fund's three-year annualized return to 12.16%.
- • All asset classes posted positive returns in fiscal 2026, with total public equities delivering the largest positive impact on the portfolio.
- • Emerging Markets equity returned 39.53%, U.S. Equity 23.20%, and International Developed Market Equity 21.61%; Real Assets returned 23.76% against a 13.33% benchmark.
- • The performance accompanies a record $7.3 billion FY2027 pension payment, the sixth consecutive full payment, and was cited by Kroll Bond Rating Agency in its September upgrade of New Jersey's general obligation bonds to AA- from A+.
Summary
New Jersey's Pension Fund generated a final, unaudited return of 14.82% for the 12-month period ended June 30, 2026, which is 7.82 percentage points above the long-term assumed rate of return, the state Treasury's Division of Investment reported at the October 28 meeting of the State Investment Council.
The Treasury Department said the performance, combined with a record pension payment of $7.3 billion for fiscal year 2027, will further strengthen the state's pension funds. The FY2027 payment is the sixth consecutive full payment and the first under Governor Mikie Sherrill's administration. State Treasurer Aaron Binder said the results over the past three years, along with the administration's commitment to the full payment, represent a major step in returning the pension fund to solid ground.
Kroll Bond Rating Agency cited the payment as one reason for its recent credit upgrade of the state. In September, Kroll raised New Jersey's General Obligation Bonds to AA- from A+. The fund has now posted double-digit returns for three consecutive years, producing a three-year annualized return of 12.16%.
Shoaib Khan, director of the Division of Investment, credited the staff and the State Investment Council, which sets asset allocation and other investment policies. All asset classes in the diversified portfolio posted positive returns, with total public equities contributing the largest positive impact. Within public equities, Emerging Markets returned 39.53%, U.S. Equity 23.20%, and International Developed Market Equity 21.61%. Real Assets returned 23.76%, outperforming its benchmark return of 13.33% by 10.43 percentage points.
The division noted that all figures remain unaudited pending completion of the fiscal year 2026 audit.
The Treasury Department said the performance, combined with a record pension payment of $7.3 billion for fiscal year 2027, will further strengthen the state's pension funds. The FY2027 payment is the sixth consecutive full payment and the first under Governor Mikie Sherrill's administration. State Treasurer Aaron Binder said the results over the past three years, along with the administration's commitment to the full payment, represent a major step in returning the pension fund to solid ground.
Kroll Bond Rating Agency cited the payment as one reason for its recent credit upgrade of the state. In September, Kroll raised New Jersey's General Obligation Bonds to AA- from A+. The fund has now posted double-digit returns for three consecutive years, producing a three-year annualized return of 12.16%.
Shoaib Khan, director of the Division of Investment, credited the staff and the State Investment Council, which sets asset allocation and other investment policies. All asset classes in the diversified portfolio posted positive returns, with total public equities contributing the largest positive impact. Within public equities, Emerging Markets returned 39.53%, U.S. Equity 23.20%, and International Developed Market Equity 21.61%. Real Assets returned 23.76%, outperforming its benchmark return of 13.33% by 10.43 percentage points.
The division noted that all figures remain unaudited pending completion of the fiscal year 2026 audit.
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