January 2014 Committee on School Finance Permanent School Fund Item 9

Discussion of the Implementation of the Emerging Market Equities
Allocation of 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 discuss the implementation of the emerging market equities allocation of the Permanent School Fund. The committee will direct staff regarding future agenda items.

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: In July 2012, the board approved a long-term strategic asset allocation plan which included a dedicated 3% allocation to emerging market equities.

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