State of New Jersey Common Pension Fund D

The State of New Jersey Common Pension Fund D is a pension plan sponsor and investment advisor that is managed by the New Kersey Division of Investment, which is in turn under the supervision of the State Investment Council. As of 2015, the total pension fund amount under the Division of Investment is approximately $80 billion, with the majority of its asset investments allocated in the global growth sector, which along makes up over half of total assets, and also invested in the income, liquidity, real return, and risk mitigation sectors, among others, listed in order of decreasing asset allocation. The State of New Jersey Pension Fund includes four common pension funds, with Common Pension Fund A focusing on domestic equities, Common Pension Fund B focusing on domestic fixed income, Common Pension Fund E focusing on alternative investments, and Common Pension Fund D, one of the funds within this family, focusing on international securities and fixed income securities. The fund does not exist as a legally separate entity within New Jersey and that assets that are managed by the division and the funds are included in the financial statements of the state. The dividends and interests earned on the New Jersey Common Pension Fund D per unit are calculatedly monthly and the income is reinvested, unlike the Common Pension Funds A and B, which are calculated monthly like the Pension Fund D but are distributed quarterly. The New Jersey Common Pension Fund D is utilized in calculating foreign currency risk for the firm in the expectation that changes in exchange rates can affect the value of investments, stipulating that emerging market security market values cannot exceed over “1.5 times the percentage derived by dividing the total market capitalization of companies included in the Morgan Stanley Capital International (MSCI) Emerging Market Index by the total market capitalization of the companies included in the MSCI All-Country World Ex-United States Index of the total market value of the assets held by Common Pension Fund D.” The fund has an approximately market value of $25.6 billion as of 2015 first quarter.