THURSDAY
January 20, 2011
1 p.m.
COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND - Room 1-100
Members: David Bradley, Chair; Marsha Farney; Charlie Garza; Gail Lowe; and Michael Soto. A quorum of the State Board of Education may attend the committee meeting and discuss items on the committee agenda. A quorum of the Committee of Investment Advisors to the Permanent School Fund may attend the committee meeting and discuss items on the committee agenda.
Public Testimony - Individual testimony will be taken at the time the related item comes up for committee discussion or action. The procedures for registering and taking public testimony at State Board of Education committee meetings and general board meetings are provided at http://www.tea.state.tx.us/index4.aspx?id=3958.
1. Election of Chair
(no agenda exhibit)
State Board of Education (SBOE) operating rules call for each committee to elect a chair from among its members. This item provides an opportunity for each of the SBOE standing committees to elect a chair in the event that the SBOE elects to retain the existing committee structure. The chair may appoint a vice chair. If the board changes the committee structure, the committee may elect a member to preside over the January meeting only. Statutory authority for this action is the Texas Education Code, §7.107.
COMMITTEE - ACTION
SBOE - NO ACTION
2. Review of Permanent School Fund Securities Transactions and the Investment Portfolio
Investment staff will report on the transactions executed during the months of October and November 2010 in the investment portfolio of the Texas Permanent School Fund.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
3. Ratification of the Purchases and Sales of the Investment Portfolio of the Permanent School Fund for the Months of October and November 2010
This item provides an opportunity for the committee and board to consider approval of the purchases and sales of securities executed in the portfolio of the Permanent School Fund for the months of October and November 2010. Statutory authority for this action is the Texas Constitution, Article VII, §5(f).
COMMITTEE - ACTION
SBOE - CONSENT
4. Annual Reporting Requirement of the Internally Managed Permanent School Fund Investment Portfolio
This item provides an opportunity for the Executive Administrator and Chief Investment Officer of the Permanent School Fund to report on various items required by 19 TAC Chapter 33, Statement of Investment Objectives, Policies, and Guidelines of the Texas Permanent School Fund.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
5. Presentation by BlackRock Investment Management, LLC on Investment Management Services Provided to the Permanent School Fund
This item provides an opportunity for the committee to receive a presentation from BlackRock Investment Management, LLC on investment management services provided by the firm to the Permanent School Fund.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
6. Decision on Real Estate Investments
This item provides an opportunity for the committee and board to review and consider possible real estate investments in Cornerstone Real Estate Fund VIII, L.P. and L&B Core Income Partners, L.P. Statutory authority for this action is the Texas Constitution, Article VII, §5(f).
COMMITTEE - ACTION
SBOE - ACTION
7. Decision on Absolute Return Investments
This item provides an opportunity for the committee and board to review the current manager allocations within the absolute return asset class and consider any changes to the managers’ watch list status or rebalancing of assets between new and existing managers. Statutory authority for this action is the Texas Constitution, Article VII, §5(f).
COMMITTEE - ACTION
SBOE - ACTION
8. Report of the Permanent School Fund Executive Administrator and Chief Investment Officer
The Permanent School Fund executive administrator will report to the committee on matters relating to the management of the Permanent School Fund. The report will present information on historical and current status of Fund holdings, current and proposed investment policies and procedures, historical and current Fund performance and compliance. The administrator will update the board on the PSF distribution, the bond guarantee program, the status of requests for proposal or for qualifications and current contracts for services and other administrative activities undertaken on behalf of the board. The administrator will provide an analysis of current and future investment market conditions, focusing upon the impact on the holdings of the Permanent School Fund. The committee will direct investment staff regarding future agenda items.
COMMITTEE - DISCUSSION
SBOE - NO ACTION