N.J. Admin. Code § 17:4A-18.1

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

Section 17:4A-18.1 - Permissible investments

(a) Subject to the limitations in this subchapter, the Board may invest PFRSNJ fund assets in real assets in any of the following ways:

1. Invest in real assets through direct investments, separate accounts, commingled funds, co-investments, funds-of-funds, and joint ventures directly, provided that the further provisions at N.J.A.C. 17:4A-1.4 have been met;

2. Purchase the common stock of an entity that primarily invests in real assets, and whose stock is traded on a securities exchange or 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 real assets. 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 the rights or conversion privileges into the common stock of any security acquired by the PFRSNJ;

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 real assets; and

5. Retain any distribution received as a result of a corporate action or distribution by a real asset investment, 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 real assets 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-18.1

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

Recodified from 17:4A-18.2 by 56 N.J.R. 795(a) effective 5/6/2024