Jan-Feb Committee on School Finance Permanent School Fund Item 6

Ratification of the Purchases and Sales of the Investment Portfolio of the Permanent School Fund for the Months of October and November 2016

February 3, 2017

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 consider approval of the purchases and sales of investments executed in the portfolio of the Permanent School Fund for the months of October and November 2016.

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

PREVIOUS BOARD ACTION: At the November 2016 meeting, the board approved purchases in the amount of $841,579,353 and sales in the amount of $726,730,498 conducted in the investment portfolio of the Permanent School Fund for the months of August and September 2016.

BACKGROUND INFORMATION AND SIGNIFICANT ISSUES: The purchases and sales of the investment portfolio are reviewed by the staff to ensure compliance with the Investment Guidelines, Policies, and Objectives of the Permanent School Fund. The specific amounts of the purchases and sales for the reporting period will be recommended to the board for ratification upon approval by the Committee on School Finance/Permanent School Fund.

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

PUBLIC AND STUDENT 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.

PROCEDURAL AND REPORTING IMPLICATIONS: Not applicable.

PUBLIC COMMENTS: None.

OTHER COMMENTS AND RELATED ISSUES: The State Board of Education has adopted Investment Guidelines, Policies, and Objectives, which establish the criteria for the purchase of the investments to the portfolio.

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