N.J. Admin. Code § 17:4A-20.2

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

Section 17:4A-20.2 - Limitations

(a) At the time of each transaction, the following conditions shall be met:

1. Each transaction shall be subject to applicable market or other regulatory position limits;

2. The aggregate market value of each asset class, together with the notional value of any futures contract obligations should be within the asset allocation range for the respective asset class; and

3. The total aggregate notional value of all futures contracts shall not exceed an amount equal to five percent of the total PFRSNJ fund assets, except that this limit may be increased to an amount not to exceed 10 percent by the Chief Investment Officer for a fixed period of time after consultation with the Investment Committee of the Board. Long and short positions shall not be netted when computing total aggregate notional value.

(b) If, subsequent to the initial transaction, 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-20.2

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

Recodified from 17:4A-20.4 by 56 N.J.R. 795(a) effective 5/6/2024