Key Takeaways
- • The New Jersey Pension Fund posted 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 the state Treasury's Division of Investment.
- • The fund's net asset value exceeded $85.9 billion as of May 31, serving 837,000 public employees and retirees across seven state-administered pension systems.
- • FY2026 marks the third consecutive double-digit return year, lifting the three-year annualized return to 12.16%.
- • Emerging Market equities returned 39.53%, U.S. Equity 23.20%, and International Developed Market Equity 21.61%, with all asset classes posting positive returns.
- • Real Assets returned 23.76% versus a benchmark of 13.33%, outperforming by 10.43 percentage points.
- • The state made a record $7.3 billion pension payment for FY2027, the sixth consecutive full payment and the first under Gov. Mikie Sherrill, which Kroll Bond Rating Agency cited in a recent credit rating upgrade.
Summary
The New Jersey Pension Fund generated a final, unaudited return of 14.82% for the 12-month period ended June 30, 2026, according to the state Treasury's Division of Investment, which reported the results on Wednesday. The return exceeded the long-term assumed rate of return by 7.82 percentage points. The fund invests to finance retirement benefits for 837,000 public employees and retirees across seven state-administered pension systems, and its net asset value was more than $85.9 billion as of May 31, per the Division's website.
The result is the third consecutive year of double-digit returns, bringing the three-year annualized return to 12.16%. Publicly traded stocks contributed the most to performance, and every asset class in the diversified portfolio generated positive returns. Emerging Market stocks led with 39.53%, followed by U.S. Equity at 23.20% and International Developed Market Equity at 21.61%. Real Assets delivered 23.76% against a benchmark return of 13.33%.
Officials also highlighted the state's record pension payment of $7.3 billion for FY2027, the sixth full payment in a row and the first under the administration of Gov. Mikie Sherrill. Kroll Bond Rating Agency cited the payment as one reason for its recent credit rating upgrade of the state.
State Treasurer Aaron Binder said the results, combined with the full payment, represent a significant step in returning the pension fund to solid ground. Shoaib Khan, Director of the Division of Investment, credited the Division's staff and the State Investment Council, which sets asset allocation and investment policy. The Division noted that the figures remain unaudited pending completion of the Fiscal Year 2026 audit.
The result is the third consecutive year of double-digit returns, bringing the three-year annualized return to 12.16%. Publicly traded stocks contributed the most to performance, and every asset class in the diversified portfolio generated positive returns. Emerging Market stocks led with 39.53%, followed by U.S. Equity at 23.20% and International Developed Market Equity at 21.61%. Real Assets delivered 23.76% against a benchmark return of 13.33%.
Officials also highlighted the state's record pension payment of $7.3 billion for FY2027, the sixth full payment in a row and the first under the administration of Gov. Mikie Sherrill. Kroll Bond Rating Agency cited the payment as one reason for its recent credit rating upgrade of the state.
State Treasurer Aaron Binder said the results, combined with the full payment, represent a significant step in returning the pension fund to solid ground. Shoaib Khan, Director of the Division of Investment, credited the Division's staff and the State Investment Council, which sets asset allocation and investment policy. The Division noted that the figures remain unaudited pending completion of the Fiscal Year 2026 audit.
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