New Jersey Pension Fund posts 10.96% return for fiscal year 2025, outperforming long-term target
TRENTON, N.J. — New Jersey’s Pension Fund reported a 10.96% return for the 12-month period ending June 30, 2025, surpassing the state’s long-term assumed rate of return by nearly 4 percentage points, according to unaudited figures presented Wednesday to the State Investment Council.
The Division of Investment said the fund’s performance, combined with the state’s record $7.2 billion pension contribution for fiscal year 2026, will continue to strengthen the system’s financial position. Under Governor Phil Murphy’s administration, total contributions to the pension fund have exceeded $47 billion, nearly quadruple the $12.2 billion contributed by the six prior administrations 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’s returns were driven by a diversified portfolio, with particularly strong gains in public equity markets. International Small Cap Equity returned 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 returned 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 all figures are unaudited pending completion of the Fiscal Year 2025 audit.
