N.J. Admin. Code § 17:4A-10.2

Current through Register Vol. 56, No. 24, December 18, 2024

Section 17:4A-10.2 - 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(a) for investments other than publicly traded securities, the following conditions shall be met:

1. Not more than 13 percent of the market value of the total PFRSNJ fund assets shall be invested in private credit investments, whether invested directly or through separate accounts, funds-of-funds, commingled funds, co-investments, and joint ventures that primarily invest in private credit investments;

2. The total amount of direct bank loans purchased or acquired under this subchapter shall not exceed 10 percent of the outstanding long-term debt of the borrower, except that these requirements may be waived by the Board;

3. The total amount directly invested by the PFRSNJ in the equity and fixed income obligations of any one issuer and affiliated entities, in the aggregate, shall not exceed five percent of the total PFRSNJ fund assets;

4. The total amount of a particular class of stock purchased or acquired of any one issuer shall not exceed 10 percent of that class of stock outstanding; and

5. 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.

N.J. Admin. Code § 17:4A-10.2

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

Recodified from 17:4A-10.4 by 56 N.J.R. 795(a) effective 5/6/2024