N.J. Admin. Code § 17:4A-26.2

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

Section 17:4A-26.2 - Limitations

(a) At the time of purchase of publicly traded securities pursuant to this subchapter, or at the time of presentation to the Investment Committee in accordance with N.J.A.C. 17:4A-1.4 for investments other than publicly traded securities, the following conditions shall be met:

1. The aggregate market value of investments in absolute return strategy investments shall not exceed 10 percent of the total PFRSNJ 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 purchased or acquired of any one issuer eligible for investment pursuant to 24.1(a)2 and (b) shall not exceed 10 percent of that class of stock outstanding; and

4. The total amount of shares directly purchased or acquired of any one exchange-traded fund shall not exceed 10 percent of the total shares outstanding of such fund.

(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.

(c) For investments of funds-of-funds, the limitations at (a) above shall apply to the underlying investments.

N.J. Admin. Code § 17:4A-26.2

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

Recodified from 17:4A-26.4 by 56 N.J.R. 795(a) effective 5/6/2024