September 2020 Committee on School Finance/Permanent School Fund Item 10

Authorization to Issue a Request for Proposals for Emerging Manager Investment Management in the Private Equity and Real Estate Asset Classes for the Permanent School Fund

September 2, 2020

COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND:  ACTION
STATE BOARD OF EDUCATION:  CONSENT

SUMMARY:  This item provides the opportunity for the committee and board to approve the issuance of a request for proposals for emerging manager investment management in the private equity and real estate asset classes for the Permanent School Fund.

STATUTORY AUTHORITY:  Texas Constitution, Article VII, §2 and §5; and 19 Texas Administrative Code (TAC) Chapter 33.

The Texas Constitution, Article VII, §2 and §5 establish the permanent school fund, the assets that comprise the permanent school fund, the bond guarantee program, the available school fund, and authorize the State Board of Education (SBOE) to manage and invest the permanent school fund in accordance with the prudent person standard.

19 TAC Chapter 33 codifies administrative rules that provide a statement of investment objectives, policies, and guidelines of the Texas Permanent School Fund and Bond Guarantee Program as adopted by the SBOE.

The full text of statutory citations can be found in the statutory authority section of this agenda.

PREVIOUS BOARD ACTION:  None                                                                                             
BACKGROUND INFORMATION AND JUSTIFICATION:  At the July 2020 meeting, the board approved a 1% allocation to an emerging manager program in real estate and private equity asset classes.

Staff Members Responsible: 
Holland Timmins, Executive Administrator and Chief Investment Officer of the Texas Permanent School Fund