Filed Under:Annuities, Variable

New Jersey backs off emerging markets as pensioners cut ETFs

New Jersey's $76.8 billion pension fund has cut its holding of developing-nation ETFs to less than $1.8 billion.
New Jersey's $76.8 billion pension fund has cut its holding of developing-nation ETFs to less than $1.8 billion.

(Bloomberg) -- No other U.S. pension, endowment or foundation manager has invested as heavily in emerging-market ETFs as the New Jersey Pension Fund, a $3.2 billion gamble at its height. Now the state’s reversing course.

The $76.8 billion fund, the 12th largest public pension manager in the U.S., has cut its holding of developing-nation exchange-traded funds to less than $1.8 billion, according to filings through March 31 compiled by Bloomberg. The fund’s managers had boosted the position from just $115 million in 2009 to over $3 billion by the end of 2012.

Gains for the pension fund of 14.6 percent last year were limited by losses of 2.94 percent on emerging-market equity investments, according to the New Jersey State Investment Council’s 2013 annual report. That compares with a 4.98 percent decline in the MSCI developing-nation gauge and a 29.6 percent advance in the Standard & Poor’s 500 Index, the benchmark for U.S. stocks.

In March, developing-market equities traded at their lowest level on a price basis against the MSCI World Index of developed-nation stocks in more than five years. The ratio between the two indexes has since rebounded as emerging-market stocks rallied in the past three months, led by gains in Brazil and India ahead of national elections.

Copyright 2016 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Featured Video

Most Recent Videos

Prospects not listening to voice mail? Arrange a phone date

Provided by LIFEHEALTHPRO

Redesigning your phone life is more important than finding the “best words” for a voice mail in today’s culture.

Behind the scenes with Vicki Gunvalson [VIDEO]

Provided by LIFEHEALTHPRO

In this exclusive interview, Vicki Gunvalson shares how she built a $15 million a year annuity business by planning for...

Regulator: Market may need to reinvent LTCI

Provided by LIFEHEALTHPRO

Cioppa says Maine's governor wants to spur the creation of better products.

Dementia: It's more than Alzheimer's

Provided by LIFEHEALTHPRO

An association calls for policymakers to remember lesser-known neurodegenerative conditions.

Related resources

More Resources

Comments

Power your business with up-to-the-minute insurance news, analysis, and best practices from LifeHealthPro Daily eNewsletter – FREE.

Power your business with LifeHealthPro Daily eNewsletter – FREE.

Enter a valid email address.
Close
Nichole Morford

Nichole Morford
Managing Editor

Thank you for subscribing to LifeHealthPro Daily!

Check Out More eNewsletters Now! Close

Advertisement. Closing in 15 seconds.