New Jersey Pension Fund returns net 9.1% for fiscal year

The New Jersey Pension Fund, Trenton, recorded a net gain of 9.1% for the fiscal year ended June 30, beating the benchmark return of 8.4%.

For the three- and five-year periods, the fund returned an annualized net 8.9% and 6.8%, respectively, compared with benchmark returns of 9.4% and 7.9%, according to materials issued in connection with the Oct. 25 board meeting of the State Investment Council. The Council governs investment policies for the Division Of Investment, the manager of the state's $91.4 billion pension fund.

In fiscal 2022, the fund lost a net -7.9%.

By asset class, for fiscal 2023, global growth assets returned a net 14.3% (13.2% for benchmark), while real return assets returned a net -1.8% (-0.5%). Meanwhile, income assets returned a net 5.5% (1.8%), and defensive assets returned a net 2.1%, matching its benchmark.

Global growth assets comprised U.S. equity, non-U.S. developed market equity, emerging market equity and private equity.

Real return comprised real estate and real assets.

Income assets comprised investment-grade credit, high yield and private credit.

Defensive assets included cash equivalents, U.S. Treasuries and risk-mitigation strategies.

The fund's actual asset allocation as of June 30 was 28.1% U.S. equity, 13.3% non-U.S. developed market equities, 12.2% private equity, 8.6% cash equivalents, 7.3% private credit, 6.9% investment- grade credit, 5.8% real estate, 5.1% emerging market equities, 3.9% U.S. Treasuries, 3.5% high yield, 2.9% risk-mitigation strategies, and the remainder in real assets.

The target allocations for the aforementioned asset classes were 27%, 13.5%, 13%, 4%, 8%, 7%, 8%, 5.5%, 4%, 4%, 3% and 3%, respectively.