February 2015 Committee on School Finance Permanent School Fund Item 7

Overview of the Real Estate Asset Class

February 13, 2015

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 review the real estate policies, procedures and tactical plan.

STATUTORY AUTHORITY: Texas Constitution, Article VII, §5(f).

PREVIOUS BOARD ACTION: None.

BACKGROUND INFORMATION AND SIGNIFICANT ISSUES: At the July 2012 meeting, the board set a strategic asset allocation which included an 8% allocation to real estate. At the May 2008 meeting, the board selected Courtland Partners as the Permanent School Fund’s real estate counsel. At the March 2009 meeting, the board approved the Texas Permanent School Fund Real Estate Investment Policy Statement.

FISCAL IMPACT: The distribution of the Permanent School Fund is projected to be $1.677 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