New Jersey’s Pension Fund generated a final, unaudited return of 10.96% for the 12-month period ended June 30, 2025, 3.96% above the long-term assumed rate of return, Treasury’s Division of Investment reported during Oct. 29’s meeting of the State Investment Council.
The state said the results, coupled with its record pension payment of $7.2 billion for fiscal year 2026, will further strengthen New Jersey’s Pension Fund. Contributions to the fund under Gov. Phil Murphy exceeded $47 billion.
“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.”
In September, credit rating agency Moody’s upgraded its rating on New Jersey’s general obligation bonds to Aa3 from A1, revising the outlook from positive to stable, citing financial reserves that will help the state weather economic uncertainty. In making its latest upgrade, Moody’s cited debt defeasance and a surplus that will allow the state to continue its pension contribution practices.
“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.”
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 (18.9%); emerging markets equity (16.3%); and U.S. equity (15.2%). In fixed income, high-yield delivered 9.9%. Within private markets, real assets delivered 11.1%; risk mitigation strategies (8.9%); and private credit (7.7%).
The Division of Investment noted that performance numbers are unaudited pending completion of the fiscal year 2025 audit.
