June 2021 Committee on School Finance/Permanent School Fund Item 11

Approval of the Selection of a Firm(s) to Provide Services Related to U.S. High Yield Fixed Income Discretionary Investment Managers for the Texas Permanent School Fund and the State Board of Education as outlined in Request for Proposal 701-21-002 and Authorization for Contract Execution by the Commissioner of Education

June 25, 2021

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

SUMMARY: This item provides an opportunity for the committee and board to approve the selection of a firm(s) to provide services related to U.S. High Yield Fixed Income Discretionary Investment Managers for the Texas Permanent School Fund (PSF) and the State Board of Education (SBOE) as outlined in request for proposal (RFP) 701-21-002 and authorization for contract execution by the commissioner of education.

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 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: At the November 2020 meeting, the SBOE authorized the issuance of the RFP for U.S. High Yield Fixed Income Discretionary Investment Managers for the PSF.

BACKGROUND INFORMATION AND JUSTIFICATION: The RFP was posted on December 11, 2020 and responses were due on February 25, 2021.

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