New York State Teachers' Retirement System
January 31, 2008 Board Meeting
Summary of Actions

Re-elected Joseph McLaughlin president and Iris Wolfson vice president of the Board.  

Considered a real estate investment in Carbon Capital Fund III Inc., and authorized the System to invest up to $75 million, or an amount not to exceed 20% of the fund’s capital commitments in that fund, subject to the satisfactory completion of due diligence.

Considered a real estate investment in Lehman Brothers Real Estate Mezzanine Partners II L.P., and authorized the System to invest up to $100 million, or an amount not to exceed 20% of the fund’s capital commitments in that fund, subject to the satisfactory completion of due diligence.

Considered a private equity investment in CVC European Equity Partners V L.P., and authorized the System to invest up to €100 million in that fund, subject to the satisfactory completion of due diligence.

Considered a private equity investment in CS/NYSTRS Cleantech Fund L.P., and authorized the System to invest up to $100 million in that fund, subject to the satisfactory completion of due diligence.

Authorized an expansion of services performed for NYSTRS by Callan Associates Inc. to include monitoring the performance of the System’s external real estate securities managers.

Authorized an agreement with StepStone Group LLC to serve as the System’s private equity consultant, for one year, effective February 1, 2008.

Ratified the following actions taken by the Retirement Board's Finance Committee since the previous Board meeting:

• An investment of $31.7 million (a 32.5% share) in a revised development at Towson Town Center in Baltimore as part of a joint venture with General Growth Properties and JP Morgan’s Strategic Property Fund, subject to the satisfactory completion of due diligence.
• A $160 million first mortgage for The Galleria at Sunset Mall in Henderson, NV, subject to the satisfactory completion of due diligence.
• A plan to market the CarrAmerica Suburban Office portfolio for prospective sale, subject to the satisfactory completion of due diligence.

Ratified the following actions taken by the Executive Director since the previous Board meeting:

• An investment of up to €50 million, or an amount not to exceed 20% of the fund’s capital commitments, in Perella Weinberg Real Estate Fund I L.P., subject to the satisfactory completion of due diligence.
• An investment of $50 million, or an amount not to exceed 20% of the fund’s capital commitments, in Cerberus Institutional Real Estate Partners L.P.–Series Two, subject to the satisfactory completion of due diligence.
• An increase in equity capital and mezzanine financing of up to a combined total of $55.4 million for the development of a condominium resort at Honua Kai, Maui, HI, in partnership with Intrawest, subject to the satisfactory completion of due diligence.
• An investment of up to $50 million, or an amount not to exceed 20% of the fund’s capital commitments, in PLA Residential Fund III L.P., subject to the satisfactory completion of due diligence.

Renewed the agreement with Barclays Global Investors to manage a portion of the System’s portfolio as an enhanced passive international equity manager, for one year, effective March 15, 2008.

Renewed the agreement with Black Rock Financial Management Inc. to manage a portion of the System’s assets in Commercial Mortgage Backed Securities (CMBS), for one year, effective April 3, 2008.

Renewed the agreement with ING Clarion Capital to manage a portion of the System’s assets in Commercial Mortgage Backed Securities (CMBS), for one year, effective March 30, 2008.

Renewed the agreement with Iridian Asset Management LLC to manage a portion of the System’s portfolio as an active domestic large capitalization manager, for one year, effective April 1, 2008.

Renewed the agreement with JP Morgan Fleming Asset Management to manage a portion of the System’s portfolio as a core international equity manager, for one year, effective March 14, 2008.

Renewed the agreement with Pyramis (Fidelity) Management Trust Company to manage a portion of the System’s portfolio as a core international equity manager, for one year, effective February 28, 2008.

Renewed the agreement with Wellington Management Company LLP to manage a portion of the System’s portfolio as a benchmark agnostic international equity manager, for one year, effective March 1, 2008.

Renewed the agreement with Capital Guardian Trust Co. to manage a portion of the System’s portfolio as an active international equity manager, for one year, effective May 1, 2008.

Authorized the Executive Director to renew the System’s membership in the National Coalition on Health Care for the year ending Dec. 31, 2008.

Authorized the Executive Director to renew the System’s membership in the Council of Institutional Investors for the year ending Dec. 31, 2008.

Authorized the Executive Director to establish an off-site location to maintain business continuity in the event of an emergency preventing the System from performing duties from its offices.

Accepted changes to the Investment Policy Manual, reflecting updates approved by the Retirement Board through the July 2007 Board Meeting.

Ratified the action of the Retirement Board by mail vote approving modifications to System Program Bill 08-05, which seeks to amend Retirement and Social Security Law §177(5) by increasing from 5% to 10% the percentage of assets a public retirement system may invest in real estate under that provision.

Approved the recommendation of the System’s Actuary to modify the System’s asset valuation method when determining the annual employer contribution rate, beginning with the actuarial valuation as of June 30, 2007.

Honored Beth Herbst as NYSTRS’ 2007 Employee of the Year.

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