Education on the Real Return Asset Class
January 19, 2011
COMMITTEE OF THE FULL BOARD: DISCUSSION
STATE BOARD OF EDUCATION: NO ACTION
SUMMARY: This item provides an opportunity for the committee to receive a presentation on the real return asset class including implementation alternatives.
BOARD RESPONSE: Based on the information presented, the committee may direct staff as appropriate.
PREVIOUS BOARD ACTION: At the July 2006 meeting, the board adopted changes to the Long-Term Strategic Asset Allocation Plan. The revised allocation includes a number of new asset classes—private equity, absolute return, real return and real estate. At the July 2010 meeting, the board approved a revised Long-Term Strategic Asset Allocation Plan which included an allocation of 5.5% to real return.
FUTURE ACTION EXPECTED: None.
BACKGROUND INFORMATION AND SIGNIFICANT ISSUES: None.
FISCAL IMPACT: The distribution of the Permanent School Fund is projected to be $1.6 billion during the 2012-2013 biennium.
PROCEDURAL AND REPORTING IMPLICATIONS: Not applicable.
PUBLIC COMMENTS: None.
ALTERNATIVES: No alternative actions are proposed regarding this item.
OTHER COMMENTS AND RELATED ISSUES: None.
Commissioner of Education
Staff Member Responsible:
Holland Timmins, Executive Administrator
and Chief Investment Officer of the
Texas Permanent School Fund