N.J. Admin. Code § 17:16-71.2 - Permissible investments

(a) Subject to the limitations contained in this subchapter, the Director may invest and reinvest the moneys of any eligible fund 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 subject to the further provisos contained in N.J.A.C. 17:16-69.9;

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 invest 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 (a) above, the Director may:

1. Exercise the rights or conversion privileges into the common stock of any security acquired under this subchapter;

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

3. Purchase the convertible debt issue of an entity, the common stock of which qualifies for investment under 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 contained in this subchapter, the Council may approve the purchase of real assets on a case-by-case basis.

Notes

N.J. Admin. Code § 17:16-71.2

Amended by R.2006 d.219, effective 6/19/2006.
See: 38 N.J.R. 1176(a), 38 N.J.R. 2731(b).
Rewrote (a)1i; and added (b).
Amended by R.2006 d.317, effective 9/5/2006.
See: 38 N.J.R. 2039(a), 38 N.J.R. 3632(a).
Rewrote the section.
Amended by R.2007 d.265, effective 8/20/2007.
See: 39 N.J.R. 1469(b), 39 N.J.R. 3551(a).
Added (b).
Amended by R.2008 d.242, effective 8/18/2008.
See: 40 N.J.R. 2095(a), 40 N.J.R. 4825(b).
In (a)2, substituted "other than real estate" for "such as oil and gas, timber, royalty trusts and commodity-linked investment vehicles"; and added (a)3, (a)4 and (c).
Amended by R.2012 d.120, effective 6/18/2012.
See: 44 N.J.R. 217(a), 44 N.J.R. 1784(b).
In (a)1, deleted "estate" following "real"; deleted former (a)2; and recodified (a)3 and (a)4 as (a)2 and (a)3.
Amended by R.2014 d.038, effective 3/3/2014.
See: 45 N.J.R. 1477(a), 46 N.J.R. 442(a).
Rewrote the section.