November 2019 Committee on School Finance/Permanent School Fund Item 10

Discussion of Emerging and Diverse Investment Management in Alternative Asset Classes


November 14, 2019

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 emerging and diverse investment management in alternative asset classes.

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.

Administrative rules found in 19 TAC Chapter 33 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.

FUTURE ACTION EXPECTED:  None

BACKGROUND INFORMATION AND JUSTIFICATION:  None

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