N.J. Admin. Code § 17:16-48.4

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

Section 17:16-48.4 - Limitations

(a) At the time of initial purchase, the following conditions shall be met:

1. The combined market value of global equity investments, excluding exchange traded funds that invest in fixed income assets, strategies, or indices, held directly by the eligible funds under this subchapter shall not exceed 70 percent of the total market value of the combined assets of all of the Pension and Annuity Funds. The Council shall be notified at the next regularly scheduled meeting of the Council when the combined market value of the equity investments held by the eligible funds reaches or exceeds 68 percent of the total market value of the combined assets of all of the Pension and Annuity Funds. Subsection (b) below shall apply when the combined market value of the equity investments held by the eligible funds exceeds 70 percent of the total market value of the combined assets of all of the Pension and Annuity Funds;

2. 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;

3. The total amount of a particular class of stock directly purchased or acquired of any one entity shall be less than 10 percent of that class of stock outstanding; provided, however, that the total amount of shares owned pursuant to this section and N.J.A.C. 17:16-42, in the aggregate, of a swap dealer or major swap participant as defined in the Commodity Futures Trading Commission rules and that are eligible to vote, shall be less than 10 percent of that class of stock outstanding;

4. The total amount of shares or interests directly purchased or acquired of any one exchange-traded fund or closed-end global, regional, or country fund shall not exceed 10 percent of the total shares outstanding or interests of such fund; and

5. The total amount directly invested in equity investments issued through a private placement by the Pension and Annuity Funds and the Common Pension Funds, in the aggregate, shall not exceed two percent of the combined assets of all the Pension and Annuity Funds.

(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 § 17:16-48.4

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