TRENTON — New Jersey’s pension funds have gained 15 percent this fiscal year as stocks rose, according to a report presented today to the State Investment Council. Assets as of Feb. 28 were $72.6 billion, a $1.8 billion increase since Dec. 31, according to a memo to the council from Timothy Walsh, director of the state Treasury Department’s investment...
TRENTON — New Jersey’s pension funds have gained 15 percent this fiscal year as stocks rose, according to a report presented today to the State Investment Council.
Assets as of Feb. 28 were $72.6 billion, a $1.8 billion increase since Dec. 31, according to a memo to the council from Timothy Walsh, director of the state Treasury Department’s investment division. The state’s fiscal year began July 1.
Domestic equities were the best-performing segment, returning 32.3 percent from June 30 to Feb. 28, compared with 31.2 percent for the Standard & Poor’s 1500 Index, according to the memo.
As of Feb. 28, about $35 billion, or 48 percent, of the fund’s assets were in public equity. The funds had about $10.8 billion, or 15 percent, in alternative investments, which include private equity, real estate and hedge funds. The division has proposed raising the maximum share of holdings that can be placed in alternatives to 38 percent from 28 percent to help boost returns.
Walsh’s group manages investments for seven pension funds that provide benefits to about 800,000 working and retired teachers, police officers and government employees.
In private equity, it seeks to put $100 million in Centerbridge Capital Partners II, which invests in financially distressed companies, and $100 million in mezzanine fund Newstone Capital Partners II. In hedge funds, the division plans to invest $100 million in Daniel Loeb’s Third Point Partners and $200 million in Reservoir Strategic Partners Fund.
It also wants to double its $100 million investment in William Ackman’s Pershing Square and add $200 million to its $300 million commitment to Daniel Och’s Och-Ziff Structured Credit.
Previous coverage:
• N.J. waits for IRS review of troubled public worker pension funds
• Without reform, Gov. Christie says N.J. pension system will go broke by 2020
• N.J. pension fund for retired teachers, state workers gains nearly 9 percent this fiscal year