N.J. Admin. Code § 17:4A-15.1

Current through Register Vol. 56, No. 23, December 2, 2024

Section 17:4A-15.1 - Permissible investments

(a) Subject to the limitations in this subchapter, the Board may invest and reinvest PFRSNJ-managed fund assets in non-convertible preferred stock, provided that:

1. The stock is traded on a securities exchange or over-the-counter market or issued through a private placement;

2. The company has a market capitalization or contributed capital of at least $ 100 million. Subsequent to purchase, if capitalization or contributed capital falls below $ 100 million, the investment does not have to be sold; and

3. The stock has a credit rating of at least: Baa3 or higher by Moody's Investors Service, Inc., BBB- or higher by Standard & Poor's Corporation, and BBB- or higher by Fitch Ratings, except that two of the three ratings is sufficient and one of the three ratings is sufficient if only one rating is available. Subsequent to purchase, if the ratings fall below the minimum rating for such securities, they do not have to be sold, and they may be exchanged with securities with credit ratings lower than the minimum rating if the securities received in exchange are, on balance, similarly rated.

(b) Notwithstanding the restrictions at (a) above, the Board may invest and reinvest PFRSNJ-managed fund assets in: global debt obligations; state, municipal, and public authority obligations; collateralized notes and mortgages; international government and agency obligations; non-convertible preferred stock; and mortgage-backed pass-through securities that do not meet the minimum credit ratings set forth in this section and at N.J.A.C. 17:4A-6.1, 7.1, 8.1, 9.1, and 17.1, respectively; provided, however, the aggregate market value of such investments shall not exceed eight percent of the total PFRSNJ fund assets.

(c) Notwithstanding the restrictions at (a) above, the Board may invest and reinvest the moneys of the PFRSNJ-managed fund assets in global debt obligations and non-convertible preferred stock of companies that do not meet the minimum market capitalization or contributed capital set forth at N.J.A.C. 17:4A-6.1 and this section, respectively; provided, however, the market value of such investments shall not exceed one percent of the total PFRSNJ fund assets.

(d) Notwithstanding the restrictions in this subchapter, the Board may authorize the purchase of non-convertible preferred stock on a case-by-case basis if the Board determines such purchase to be 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-15.1

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

Recodified from 17:4A-15.2 by 56 N.J.R. 795(a) effective 5/6/2024