Pension Funds Trail Benchmark

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New Jersey’s pension funds continue to trail benchmarks for the fiscal year, calendar year and over the 12 months ending in October, the state Division of Investment said November 30.

The pension funds earned 2.31 percent between the start of the fiscal year in July and the end of October, 56 basis points below benchmark. The 4.55 percent calendar-year return is 141 basis points below benchmark.

Notably, the income asset class – credit investments, where $14.8 billion of the funds’ $70.7 billion market value is stored – posted returns of just 2 percent this fiscal year despite a benchmark gain of 3.43 percent. Real returns, which includes commodities and some real estate investments, lost .84 percent despite a benchmark gain of 2.95 percent.

The funds continue to perform well over the last decade and have earned more than 5 percent over the last three years, slightly above benchmark.

Source: Politico Pro