New York State Teachers' Retirement System
July 30, 2008 Board Meeting
Summary of Actions

Authorized the allocation of up to $250 million to Quantitative Management Associates LLC to manage a portion of the System's portfolio as a domestic equity enhanced passive manager.

Authorized the allocation of up to $500 million to T. Rowe Price Associates Inc. to manage a portion of the System's portfolio as a domestic equity enhanced passive manager.

Authorized that the System's asset allocation targets and ranges be amended effective immediately as follows:

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

• The revision of the sales matrix for the CarrAmerica Office Portfolio.
• A $75 million construction mortgage loan with an interest rate of 6.35% and a term of approximately eight years and five months for the Promenade at Temecula Mall in Temecula, CA.
• A five-year, $165 million first mortgage for Williams Tower in Houston, TX. The gross interest rate for the interest-only, five-year loan will be 5.50%; the net interest to the System shall be 5.49%.
• A 50% participation ($120 million) in a $240 million first mortgage for U.S. Bank Centre, Seattle, WA. The 10-year loan will carry an interest rate of 6.31%.
• An investment of up to $60 million in Aisling Capital III L.P.

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

• An investment of $50 million, or an amount not to exceed 20% of the fund's capital commitments, in the Lone Star Fund VI (U.S.) L.P, subject to the satisfactory completion of due diligence.
• An investment of up to $8.8 million to acquire the remaining 50% interest in the land subject to the ground lease encumbering part of the land beneath 919 Third Ave., New York, NY.
• An investment of up to $75 million, but not less than $50 million, in an existing $1.3 billion first mortgage on the office building located at 767 Fifth Avenue, New York, NY.

Renewed the agreement with Artisan Partners to manage a portion of the System's portfolio as an active international equity manager, for one year, effective Oct. 1, 2008.

Renewed the agreement with Causeway Capital Management to manage a portion of the System's portfolio as an active international equity manager, for one year, effective Oct. 1, 2008.

Renewed the agreement with Harris Associates to manage a portion of the System's portfolio as an active international equity manager, for one year, effective Oct. 1, 2008, and placed the firm on the System's investment manager “watch list.”

Renewed the agreement with Mercator Asset Management to manage a portion of the System's portfolio as an active international equity manager, for one year, effective Oct. 1, 2008, and placed the firm on the System's investment manager “watch list.”

Renewed the agreement with Cohen & Steers Capital Management Inc. to manage a portion of the System's portfolio in real estate investment trusts (REITs) and real estate operating companies (REOCs) securities, for one year, effective Sept. 13, 2008.

Renewed the agreement with Prima Capital Advisors LLC to manage a portion of the System's portfolio in commercial mortgage backed securities (CMBS), for one year, effective Oct. 1, 2008.

Renewed the agreement with Progress Investment Management Company to manage a portion of the System's portfolio as a fund of funds manager for domestic small and medium capitalization equity managers, for one year, effective Oct. 1, 2008.

Renewed the agreement with State Street Global Advisors to manage a portion of the System's portfolio as an international enhanced passive manager, for one year, effective Oct. 25, 2008.

Heard informational reports from Callan Associates on private equity and external manager performance.

Heard an informational report from StepStone on private equity distressed debt opportunities.

Adopted an employer contribution rate applicable to 2008-09 payrolls and collected during the 2009-10 school year of 7.63%.

Authorized the Executive Director to enroll NYSTRS as a member of the National Institute of Retirement Security and thereafter to continue such membership at his discretion.

Authorized the Executive Director to retain a Parliamentarian for the System's Annual Delegates Meeting, scheduled for Nov. 9-10, 2008 at the Saratoga Springs City Center.

Approved a resolution acknowledging the retirement of Legal Department Administrative Aide Paul McGowan (27 years of service).

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