New Jersey State Investment Council, Trenton, approved rules and procedures for the state's division of investment to invest in alternatives, including the use of external managers, according to Tom Vincz, spokesman for state Treasurer John McCormac. The division of investment, which oversees $70 billion in pension assets, will be allowed to allocate 13% of total assets to alternatives, which includes hedge funds and private equity. Currently, the state's pension fund assets are managed internally. The policy sets goals and guidelines for each new asset class and prescribes risk-control responsibilities for the council, the division of investment and treasury department.
Alternative class investments will be made by the division of investment with assistance from investment consultants, including general consultant Strategic Investment Solutions. The division will have the authority to issue RFPs.