New Jersey Administrative Code › Title 17 - TREASURY - GENERAL › Chapter 16 - RULES OF THE STATE INVESTMENT COUNCIL › Subchapter 71 - REAL ASSETS › Section 17:16-71.1 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, as used in this subchapter,
				  shall have the following meanings, unless the context clearly indicates
				  otherwise:
"Co-investment" means two parties (usually the limited
				  partner and the general partner of a fund) invest alongside each other in the
				  same company, portfolio, or property. If an investor in a fund has
				  co-investment rights, it can invest directly in a company, portfolio, or
				  property in which the fund also invests. The investor, therefore, ends up with
				  two separate stakes - one indirectly through the fund; one directly in the
				  company, portfolio, or property. Co-investment may also include multiple
				  like-minded institutional investors investing in a specific company, portfolio,
				  or property.
"Commingled funds" means all open-end and closed-end pooled
				  investment vehicles. A commingled fund may be organized as a group trust,
				  partnership, limited liability company, corporation, insurance company separate
				  account, or other multiple ownership entity. An investment in a commingled fund
				  may take the form of an investment in the fund or in the trustee, general
				  partner, or other managing member of such fund.
"Commodity-linked investments" means equity or debt
				  investments from which all or a portion of the return is linked to the price of
				  a particular commodity or equity security, or to an index of such prices. These
				  include commodity-indexed deposits, loans, debt issues, and derivative
				  products, such as forwards, futures, options, and swaps. In these transactions,
				  the interest, principal, or both, or payment streams in the case of swaps, are
				  linked to the price of a commodity.
"Commodity-related investments" mean equity or debt
				  investments in the exploration, production, processing, transportation,
				  storage, or trading of commodities, or other similar activities.
"Common stock" means shares of stock, other than preferred
				  stock, representing ownership in a corporation or other form of legal
				  entity.
"Convertible debt issue" means a debt obligation of any
				  corporation or other form of legal entity which is convertible into the common
				  stock of the entity.
"Convertible preferred stock" means preferred stock of any
				  corporation or other form of legal entity which is convertible into the common
				  stock of the entity.
"Core real estate" means investments in existing, stabilized
				  (meaning at least 80 percent occupied), well-leased assets.
"Direct investment" means the purchase of an interest in a
				  company or venture directly by an eligible fund, rather than through an
				  investment vehicle.
"East" means Maine, New Hampshire, Vermont, Massachusetts,
				  Connecticut, Rhode Island, New Jersey, New York, Pennsylvania, Delaware,
				  Kentucky, Maryland, North Carolina, South Carolina, Virginia, Washington D.C.
				  and West Virginia.
"Exchange-traded funds" mean funds that invest in underlying
				  securities that track a predetermined index or strategy, a commodity, or a
				  basket of assets, and whose shares can be traded like shares of common
				  stock.
"Funds-of-funds" means funds set up to distribute investments
				  among a selection of fund managers, who in turn invest the capital
				  directly.
"Joint venture" means a contractual agreement joining two or
				  more parties for the purpose of executing a particular undertaking. All parties
				  agree to share in the profits and losses of the enterprise. Joint ventures are
				  usually private.
"Midwest" means Illinois, Indiana, Michigan, Ohio, Wisconsin,
				  Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South
				  Dakota.
"Non-core real estate" means value-added or opportunistic
				  strategies, including direct property investment with lease-up, development, or
				  redevelopment risk. Non-core real estate includes recapitalizations across
				  capital structures and property types and access to niche markets.
"Preferred stock" means shares of stock which provide a
				  dividend that is paid before any dividends are paid to holders of common stock
				  and additional rights above and beyond those conferred by common stock.
"Private placement" means a negotiated sale in which the
				  securities are sold directly to institutional or private investors, rather than
				  through a public offering registered with the U.S. Securities and Exchange
				  Commission or applicable foreign regulatory body. Private placement includes
				  the sale of securities pursuant to Section 4(2), Regulation D, Regulation S, or
				  Rule 144A under the Securities Act of 1933, as amended.
"Real asset investments" mean equity or debt investments in
				  real estate, infrastructure, energy, utilities, water, timber, agriculture,
				  metals, mining and royalty trusts, and commodity-related and commodity-linked
				  investments. Real asset investments include investments in products, services,
				  and technology related to the above.
"Real estate" includes core real estate and non-core real
				  estate.
"Royalty trusts" mean investments that generate an income
				  stream for investors; these primarily include natural resource assets, and
				  pharmaceuticals and medical devices.
"Separate account" means an investment vehicle with a single
				  investor that is unaffiliated with its sponsor or manager.
"South" means Alabama, Florida, Georgia, Mississippi,
				  Tennessee, Arkansas, Louisiana, Oklahoma and Texas.
"West" means Arizona, Colorado, Idaho, Montana, Nevada, New
				  Mexico, Utah, Wyoming, Alaska, California, Hawaii, Oregon and
				  Washington.