N.J. Admin. Code § 17:4A-16.2

Current through Register Vol. 56, No. 21, November 4, 2024

Section 17:4A-16.2 - 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 PFRSNJ pursuant to this subchapter shall not exceed 70 percent of the total PFRSNJ-managed fund assets. The Board shall be notified at the next regularly scheduled meeting of the Board when the combined market value of the equity investments held by the PFRSNJ reaches or exceeds 68 percent of the total PFRSNJ-managed fund assets. Subsection (b) below shall apply when the combined market value of the equity investments held by the PFRSNJ exceeds 70 percent of the total PFRSNJ-managed fund assets;

2. The total amount directly invested in the equity and fixed income obligations of any one issuer and affiliated entities shall not exceed five percent of the total PFRSNJ fund assets;

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;

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 of PFRSNJ-managed fund assets directly invested in equity investments issued through a private placement in the aggregate, shall not exceed two percent of the total PFRSNJ fund assets.

(b) If, subsequent to initial purchase, the limitations at (a) above are exceeded, then the Board shall be notified at the next regularly scheduled meeting of the Board. The Board may grant a six-month grace period to reduce the level of participation to at or below the maximum levels, except that the grace period may be extended by one or more additional four-month periods with the approval of the Board, provided the Board determines such extension is in the financial best interest of the PFRSNJ and its beneficiaries and is consistent with the Board's fiduciary responsibility.

N.J. Admin. Code § 17:4A-16.2

Adopted by 53 N.J.R. 1147(a), effective 7/6/2021

Recodified from 17:4A-16.4 by 56 N.J.R. 795(a) effective 5/6/2024