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January 2019 Committee on School Finance/Permanent School Fund Item 11

Report of the Permanent School Fund Executive Administrator and Chief Investment Officer


January 31, 2019

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

SUMMARY:
The Permanent School Fund executive administrator will report to the committee on matters relating to the management of the Permanent School Fund and the Charter District Reserve Fund. The report may present information on historical and current status of Fund holdings, current and proposed investment policies and procedures, and historical and current Fund performance and compliance. The administrator may update the board on the bond guarantee program, the status of requests for proposal or for qualifications and current contracts for services and other administrative activities undertaken on behalf of the board. The administrator may provide an update on the PSF distribution or on the effect of legislation impacting the PSF. The administrator may provide an analysis of current and future investment market conditions, focusing upon the impact on the holdings of the Permanent School Fund.

STATUTORY AUTHORITY:
Texas Education Code (TEC), §§43.003, 43.004, and 43.007 and the Texas Constitution, Article VII, §5(f).

TEC, §43.003, outlines the types of investments that the State Board of Education (SBOE) may make with the Permanent School Fund.

TEC, §43.004, requires the SBOE to develop written investment objectives and requires the board to employee a performance measurement service.

TEC, §43.007, authorizes the SBOE to make transactions in the investment portfolio of the Permanent School Fund.

The Texas Constitution, Article VII, §5(f) authorizes the SBOE to acquire, exchange, sell, supervise, manage or retain investments of the Permanent School Fund and establishes the prudent person investment practice.

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