January 2014 Committee on School Finance Permanent School Fund Item 7

Presentation by BlackRock Investment Management, LLC on Investment
Management Services Provided to the Permanent School Fund

January 30, 2014

COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND: DISCUSSION
STATE BOARD OF EDUCATION: NO ACTION

SUMMARY:
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.

BOARD RESPONSE: Based on the information presented, the committee may direct staff as appropriate.

PREVIOUS BOARD ACTION: None.

FUTURE ACTION EXPECTED: None.

BACKGROUND INFORMATION AND SIGNIFICANT ISSUES: Merrill Lynch Investment Managers, LLC was selected in November 2003 to provide investment management services for an international index fund for the Permanent School Fund. In September 2006, Merrill Lynch Investment Managers, LLC changed its name to BlackRock Investment Management, LLC. The current value of the portfolio managed by BlackRock for the Permanent School Fund is approximately $5 billion.

FISCAL IMPACT: The distribution of the Permanent School Fund is projected to be $1.675 billion during the 2014-2015 biennium.

PROCEDURAL AND REPORTING IMPLICATIONS: Not applicable.

PUBLIC COMMENTS: None.

ALTERNATIVES: None.

OTHER COMMENTS AND RELATED ISSUES: None.

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