N.J. Admin. Code § 17:16-23.4

Current through Register Vol. 56, No. 24, December 18, 2024

Section 17:16-23.4 - Limitations

(a) The following conditions shall all be met at the time of purchase, in the case of investments in publicly traded securities, and at the time of presentation to the Investment Policy Committee in accordance with N.J.A.C. 17:16-69.9(a)1, in the case of private credit investments made pursuant to N.J.A.C. 17:16-23.2(a)2:

1. Not more than 13 percent of the market value of the combined assets of all of the Pension and Annuity Funds shall be invested in private credit investments, whether directly or through separate accounts, funds-of-funds, commingled funds, co-investments, and joint ventures that primarily invest in private credit investments. This limitation shall be applied to the Pension and Annuity Funds' proportionate interest in private credit investments;

2. The total amount of direct bank loans purchased or acquired under this subchapter shall not exceed 10 percent of the outstanding long-term debt of the borrower except that these requirements may be waived by the Council;

3. The total amount directly invested in the equity and fixed income obligations of any one issuer and affiliated entities by the Pension and Annuity Funds and the Common Pension Funds, in the aggregate, shall not exceed five percent of the combined assets of all the Pension and Annuity Funds. This limitation shall be applied to the Pension and Annuity Funds' proportionate interest in private credit investments;

4. The total amount of a particular class of stock purchased or acquired of any one issuer shall not exceed 10 percent of that class of stock outstanding; and

5. The total amount of shares directly purchased or acquired of any one exchange-traded fund shall not exceed 10 percent of the total shares outstanding of such fund.

(b) If, subsequent to initial purchase, the limitations in (a) above are exceeded, then the Council shall be notified at the next regularly scheduled meeting of the Council. The Division may be granted a six-month period of grace to reduce the level of participation below the maximum levels, except that the period of grace may be extended for additional four-month periods with the approval of the Council.

N.J. Admin. Code § 17:16-23.4

Amended by 50 N.J.R. 215(b), effective 1/2/2018

Amended by 51 N.J.R. 1130(b), effective 7/1/2019

Amended by 53 N.J.R. 1857(a), effective 11/1/2021