N.J. Admin. Code § 17:4A-19.1

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

Section 17:4A-19.1 - Permissible investments

(a) Subject to the limitations in this subchapter, the Board may enter into spot contracts for the purpose of settling investment transactions denominated in foreign currency.

(b) Subject to the limitations in this subchapter, the Board may enter into forward contracts for the purpose of hedging the portfolio.

(c) At the time of each transaction, the counterparty (or any guarantor pledging its full faith and credit to the transaction) shall have a long-term credit rating of at least: Baa2 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 are sufficient and one of the three ratings is sufficient if only one rating is available.

(d) Notwithstanding the restrictions in this subchapter, the Board may enter into foreign currency transactions 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-19.1

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

Recodified from 17:4A-19.2 by 56 N.J.R. 795(a) effective 5/6/2024