June 2019 Committee on School Finance/Permanent School Fund Item 7
Permanent School Fund Pending Contract Renewal
June 14, 2019
COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND: ACTION
STATE BOARD OF EDUCATION: CONSENT
SUMMARY: This item provides an opportunity for the committee to review the pending Permanent School Fund contract renewals. The committee will consider contract extensions with StepStone Group Real Estate LP (formerly known as Courtland Partners, Ltd.), Navarro 1 Fund LLC, and, Raven 8 Fund, LLC.
STATUTORY AUTHORITY: Texas Constitution, Article VII, §2 and §5; 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.
As adopted by the SBOE, 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.
The full text of statutory citations can be found in the statutory authority section of this agenda.
PREVIOUS BOARD ACTION: StepStone Group Real Estate LP (formerly known as Courtland Partners, Ltd.) was selected in July 2013 to provide real estate investment counsel services for the real estate fund of funds asset class for the Permanent School Fund. At the November 2014 meeting, the board approved a four-year contract extension with Courtland Partners, Ltd.
Blackrock Investment Management, LLC was selected in April 2016 to provide investment management services for Navarro 1 Fund, LLC, an emerging market equity portfolio of the Permanent School Fund.
Grosvenor Capital Management was selected in January 2016 to provide hedge fund investment services for Raven 8 Fund, LLC, an absolute return portfolio of the Permanent School Fund.
BACKGROUND INFORMATION AND JUSTIFICATION: On August 31, 2019, the following three current contracts will expire: StepStone Group Real Estate LP, Navarro 1 Fund LLC, and Raven 8 Fund, LLC.
PUBLIC BENEFIT: The distribution of the Permanent School Fund will flow to the school districts and reduce the tax burden to the public and the state of Texas.
PUBLIC COMMENTS: None
Staff Members Responsible:
Holland Timmins, Executive Administrator and Chief Investment Officer, Texas Permanent School Fund
June 14, 2019
COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND: ACTION
STATE BOARD OF EDUCATION: CONSENT
SUMMARY: This item provides an opportunity for the committee to review the pending Permanent School Fund contract renewals. The committee will consider contract extensions with StepStone Group Real Estate LP (formerly known as Courtland Partners, Ltd.), Navarro 1 Fund LLC, and, Raven 8 Fund, LLC.
STATUTORY AUTHORITY: Texas Constitution, Article VII, §2 and §5; 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.
As adopted by the SBOE, 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.
The full text of statutory citations can be found in the statutory authority section of this agenda.
PREVIOUS BOARD ACTION: StepStone Group Real Estate LP (formerly known as Courtland Partners, Ltd.) was selected in July 2013 to provide real estate investment counsel services for the real estate fund of funds asset class for the Permanent School Fund. At the November 2014 meeting, the board approved a four-year contract extension with Courtland Partners, Ltd.
Blackrock Investment Management, LLC was selected in April 2016 to provide investment management services for Navarro 1 Fund, LLC, an emerging market equity portfolio of the Permanent School Fund.
Grosvenor Capital Management was selected in January 2016 to provide hedge fund investment services for Raven 8 Fund, LLC, an absolute return portfolio of the Permanent School Fund.
BACKGROUND INFORMATION AND JUSTIFICATION: On August 31, 2019, the following three current contracts will expire: StepStone Group Real Estate LP, Navarro 1 Fund LLC, and Raven 8 Fund, LLC.
PUBLIC BENEFIT: The distribution of the Permanent School Fund will flow to the school districts and reduce the tax burden to the public and the state of Texas.
PUBLIC COMMENTS: None
Staff Members Responsible:
Holland Timmins, Executive Administrator and Chief Investment Officer, Texas Permanent School Fund