PSF Picks Real Estate Agent

At its last meeting, the Texas State Board of Education voted to have Cleveland-based Courtland Partners Ltd. help manage real estate investments made by the Permanent School Fund. In 2006, the board decided to allocate 6% of fund assets to real estate.

As of Aug. 31, the triple-A rated PSF backed debt issued by 767 school districts representing $47 billion of debt. The total allowable bond-guarantee capacity is $56 billion.

The PSF is estimated to save Texas school districts about $110 million to $120 million annually, as the guarantee precludes the need to purchase private bond insurance and helps lower costs of issuance, according to Holland Timmins, the PSF’s chief investment officer.

As Texas voters continue to approve large bond packages for school districts each year, the PSF’s capacity has become strained. Gov. Rick Perry and Education Commissioner Robert Scott are seeking to increase the bond guarantee limit.

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