N.J. Admin. Code § 17:16-82.4

Current through Register Vol. 57, No. 1, January 6, 2025

Section 17:16-82.4 - Limitations

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

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

2. The aggregate market value of each asset class, together with the 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 combined assets of all of the Pension and Annuity Funds, except that this limit may be increased to an amount not to exceed 10 percent by the Director for a fixed period of time after consultation with the Investment Policy Committee of the Council. Long and short positions shall not be netted when computing total aggregate notional value.

(b) If, subsequent to the initial transaction, the limitations in (a) above are exceeded, then the Council shall be notified at the next regularly scheduled meeting of the Council. The Division may be granted a six-month period of grace to reduce the level of participation below the maximum levels, except that the period of grace may be extended for additional four-month periods with the approval of the Council.

N.J. Admin. Code § 17:16-82.4