Email, response to PolitiFact Texas, Jim Suydam, press secretary, Texas General Land Office, Aug. 24, 2012

11:40 am

1) The $1.182 b on p 1 of the report refers to what -- cash or more than cash? Please detail.

 

Any uninvested TXGLO cash waiting to be called for investment in real assets investments is required by statute to be kept in an account at the State Treasury and is invested by the Treasury in short-term investments in the agency pool until called by TXGLO for investment in real assets investments.  At March 31, 2012, the amount of uninvested TXGLO cash at the State Treasury that was subject to call for real assets investments under contractual agreements was approximately $864 million, and the School Land Board continues to approve new investments on an ongoing basis.

 

 

2) What are the raw dollar figures behind the percentages shown under No. 2 on p. 2?

 

The time-weighted return calculation is performed by TXGLO's independent third-party performance calculation agent, State Street Bank's PrivateEdge Group.  It is a complex calculation that uses values for every day in the period being measured, so it doesn't seem practical or useful to provide all those numbers.  Instead, I have provided the quarterly returns underlying the annual return for the period.  I have also provided the ending market values of the portfolio for each quarter of the period, although trying to use them for calculation purposes will not tie to the actual time-weighted returns on the portfolio due to the complexity of the calculation methodology.

 

Gross time-weighted quarterly returns without cash:

 

March 31, 2012:  9.43%

December 31, 2011:  3.59%

 

 

September 30, 2011:  3.93%

June 30, 2011:  4.28%

 

March 31, 2011:  3.24%

 

 

 

Gross time-weighted quarterly returns with cash:

 

March 31, 2012:  5.62%

December 31, 2011:  2.10%

 

 

September 30, 2011:  2.22%

June 30, 2011:  2.52%

 

March 31, 2011:  1.97%

 

Market value without cash:

March 31, 2012 - $1.895 billion

 

December 31, 2011 - $1.686 billion

 

 

September 30, 2011 - $1.567 billion

June 30, 2011 - $1.482 billion

 

March 31, 2011 - $1.454 billion

 

Market value with cash:

March 31, 2012 - $3.077 billion

 

 

December 31, 2011 - $2.922 billion

 

 

September 30, 2011 - $2.848 billion

June 30, 2011 - $2.566 billion

March 31, 2011 - $2.458 billion

 

 

3) How much cash is reflected, total? How much in real estate investments, total?

 

At March 31, 2012:  Real assets investments:  $1.895 billion;  Cash*: $1.182 billion

 

*Any uninvested TXGLO cash waiting to be called for investment in real assets investments is required by statute to be kept in an account at the State Treasury and is invested by the Treasury in short-term investments in the agency pool until called by TXGLO for investment in real assets investments.  At March 31, 2012, the amount of uninvested TXGLO cash at the State Treasury that was subject to call for real assets investments under contractual agreements was approximately $864 million, and the School Land Board continues to approve new investments on an ongoing basis.

 

4) What were the comparable one-year rates of return -- without cash and with cash -- in each of the past three years?

 

Without cash:

At March 31, 2012:    22.86%

At March 31, 2011:    13.87%

At March 31, 2010:  -15.16%

 

With cash:

At March 31, 2012:  13.03%

At March 31, 2011:    8.20%

At March 31, 2010:   -8.67%

 

Average annual return over past three years ended March 31, 2012:  Without cash: 5.88%;  With cash:  3.75%

 

 

5) How much of the PSF does the GLO manage? How much is managed by the SBOE?

 

At March 31, 2012, the market value of the TXGLO portion of the PSF (not including the value of minerals or sovereign land) was $3.077 billion.  The SBOE portion was $25.559 billion.

 

6) Since Prop. 6 was approved, how much money has the GLO transferred under its provisions?

 

None.

 

7) Has the LBB written $300 million into the f13 state budget as an amount GLO will transfer to the ASF or such?

 

 Ask the LBB.  In January 2011, the School Land Board adopted a resolution releasing $250 million per year in each of fiscal years 2012 and 2013 to the SBOE.  (Note:  This is 250% of the amount released to SBOE in previous years.)  That money is then integrated into the SBOE payout to the ASF.  For details, ask SBOE.  TXGLO has made no direct transfers to the ASF.

 

8) Commissioner Patterson said the amount that GLO may transfer to the ASF is capped. What is the cap? Under the cap, what is the maximum dollar amount GLO could transfer this fiscal year to the ASF under the Prop. 6 provisions? Is that change, due to Prop. 6?

 

1.  $300 million per year

2.  $300 million

3.  Yes