N.J. Admin. Code § 17:4A-26.1

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

Section 17:4A-26.1 - Permissible investments

(a) Subject to the limitations in this subchapter, the Board may invest and reinvest PFRSNJ-managed fund assets in absolute return strategy investments in any of the following ways:

1. Invest in absolute return strategy funds through commingled funds, funds-of-funds, separate accounts, managed accounts, and direct investments in individual funds, provided that the requirements at N.J.A.C. 17:4A-1.4 have been met;

2. Purchase the common stock of an entity that primarily invests in absolute return strategy investments, and whose stock is traded on a securities exchange, over-the-counter market, or offered and sold through a private placement; and

3. Purchase exchange-traded funds traded on a securities exchange or the over-the-counter market that primarily invests in absolute return strategy investments. For the purposes of this subchapter, exchange-traded funds shall be considered as common stock in determining all applicable limitations contained in this subchapter.

(b) In addition to making the investments described at (a) above, the Board may:

1. Exercise of the rights or conversion privileges of any security acquired pursuant to this subchapter;

2. Purchase the preferred stock, whether convertible or not, or rights of an entity, the common stock of which qualifies for investment pursuant to this subchapter;

3. Purchase the convertible debt issue of an entity, the common stock of which qualifies for investment pursuant to this subchapter;

4. Purchase stock in new public offerings of entities that primarily invest in absolute return strategy investments; and

5. Retain any distribution received as a result of a corporate action or distribution by a fund, even if the security does not meet the requirements of this subchapter.

(c) Notwithstanding the restrictions in this subchapter, the Board may authorize the purchase of absolute return strategy investments 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-26.1

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

Recodified from 17:4A-26.2 by 56 N.J.R. 795(a) effective 5/6/2024