September 2015 Committee on School Finance Permanent School Fund Item 13

Presentation on the Commodities Discretionary Investment Management Services
Provided to the Permanent School Fund

September 10, 2015

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

SUMMARY: This item provides an opportunity for the committee to receive presentations and to review the commodities discretionary investment management services provided to the Permanent School Fund.

BOARD RESPONSE: Based on the data presented, the committee will provide guidance to the investment staff as appropriate.

PREVIOUS BOARD ACTION: At the July 2012 meeting, the board approved implementation of an allocation to Pacific Investment Management Company (PIMCO) and an allocation to Credit Suisse Asset Management.

FUTURE ACTION EXPECTED: None.

BACKGROUND INFORMATION AND SIGNIFICANT ISSUES: At the September 2011 meeting, the board approved a 6% allocation to the real return asset class.

FISCAL IMPACT: The distribution of the Permanent School Fund is projected to be $2.1 billion during the 2016-2017 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