New Jersey Division of Investment, Trenton, will start disclosing to the state investment council gains and losses in individual stocks, industries and sectors, council Chairman Orin S. Kramer said. The council will also begin limiting the size of overweight and underweight positions in those stocks, industries and countries. The $56 billion system, which oversees seven state retirement plans, is managed internally.
Previously, the division did not disclose gains or losses for individual stocks, sectors or countries, nor did it give council members any information on tracking error to foreign benchmarks, Mr. Kramer said. The division had loose limits on position sizes, specifically that the division could not own more than 5% of any company and that no single company could comprise more than 4% of a single portfolio.
On Monday, Mr. Kramer appointed council member Douglas A. Love to head a committee to draft the policy changes over the next three months.
Independent Fiduciary Services is conducting an audit of the division’s investment practices, and New Jersey Gov. James E. McGreevey has appointed an investment review committee to study the state’s investment performance and make recommendations.
