North Jersey – Of the targeted allocations for fiscal 2012, the investment plan’s greatest shift would be toward hedge funds. The State Investment Council voted Thursday to increase how much New Jersey’s pension system may put into potentially riskier investments in the next fiscal year, though far below the recently raised cap of 38 percent in so-called alternative investments.
New Jersey has 17.3 percent of its $72.6 billion pension system invested in hedge funds, private equity, real estate and commodities. Under a plan the council approved in a 10-2 vote, the pension system would aim for 25.5 percent in alternative investments in fiscal 2012. If that target is reached, it would still be below the previous cap of 28 percent.
