TRENTON, N.J. - The New Jersey Division of Investment, Trenton, is bullish on foreign stock markets.
Last year, the fund took advantage of the lifting of restrictions on investments in companies with ties to South Africa to boost international stocks. Almost 50% of the fund's international portfolio is stocks, a sharp contrast to the beginning of 1994, when virtually all of the portfolio was bonds. Bonds were hardly affected by the South Africa restrictions.
"Cash flow has virtually all been going into international investments in the last year and a half to two years,"said Roland Machold, director.
At the beginning of 1994, the relative value of international stock markets was more compelling than domestic, and Mr. Machold's 1995 outlook is similar.
"U.S. markets had already rallied and it looked like they'd be stagnant for awhile and still does," he said.
"We will keep between 45% and 55% (of international in stocks)."
New Jersey added value to overseas portfolios by increasing currency hedges when the dollar began to rally in the third quarter.
"I believe we outperformed EAFE this year quite substantially," he added. But he said year-end figures were not available as yet.
