April 2019 Committee on School Finance/Permanent School Fund Item 11
April 2019 Committee on School Finance/Permanent School Fund Item 11
Presentation on the Permanent School Fund Private Equity Program Structure
April 5, 2019
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 options regarding the private equity program structure.
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.
19 TAC Chapter 33 codifies administrative rules that provide a statement of investment objectives, policies, and guidelines of the Texas Permanent School Fund as adopted by the SBOE.
The full text of statutory citations can be found in the statutory authority section of this agenda.
PREVIOUS BOARD ACTION: At the September 2015 meeting, the board approved:
• selection of the non-discretionary advisory model as presented by NEPC for phase III of the private equity program; and,
• execution of agreement(s) with Neuberger Berman LLC for (i) a discretionary separate account to invest in private equity co-investments and secondaries; and, (ii) non-discretionary advisory services for primary private equity investments for phase III of the private equity program.
BACKGROUND INFORMATION AND JUSTIFICATION: None
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
April 5, 2019
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 options regarding the private equity program structure.
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.
19 TAC Chapter 33 codifies administrative rules that provide a statement of investment objectives, policies, and guidelines of the Texas Permanent School Fund as adopted by the SBOE.
The full text of statutory citations can be found in the statutory authority section of this agenda.
PREVIOUS BOARD ACTION: At the September 2015 meeting, the board approved:
• selection of the non-discretionary advisory model as presented by NEPC for phase III of the private equity program; and,
• execution of agreement(s) with Neuberger Berman LLC for (i) a discretionary separate account to invest in private equity co-investments and secondaries; and, (ii) non-discretionary advisory services for primary private equity investments for phase III of the private equity program.
BACKGROUND INFORMATION AND JUSTIFICATION: None
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