►
Description
Agenda HTML: https://englewoodgov.civicweb.net/filepro/documents/155236?handle=DAC6463E5D774CE0A8B54ABD858EF7BC
Agenda PDF: https://englewoodgov.civicweb.net/filepro/documents/155235?handle=082B9B921050476BBAA7C72C0E1A166A
1. Call to Order
2. Roll Call
3. New Business
Newly appointed member will be sworn in
Consolidation of Pension Boards
Actuarial Valuation Report
4. Approval of Minutes
Minutes of the Non-emergency Retirement Board Meeting of November 8, 2022
5. Recognition of Public Comment (Presentation limited to 3 minutes)
6. Gabriel Roder Smith and Company
7. Retirement Approvals and Notifications
8. Innovest Portfolio Solutions
Update on the status of the changes in investment portfolio
9. Old Business
10. Board Member's Choice
Motion to change the time of the meetings from 4:30 p.m. to 3:30 p.m.
11. Next Meeting: May 9, 2023
12. Adjournment
Agenda HTML: https://englewoodgov.civicweb.net/filepro/documents/155236?handle=DAC6463E5D774CE0A8B54ABD858EF7BC
Agenda PDF: https://englewoodgov.civicweb.net/filepro/documents/155235?handle=082B9B921050476BBAA7C72C0E1A166A
C
A
D
A
I
am
looking
at
the
agenda
right
now
and
let's
do
the
call
to
order
so
that
we
are
official
here
and
then
I
would
like
to
call
the
do.
A
roll
call
of
everybody
who
is
here,
especially
the
members
of
the
board
and
I,
am
Bob
Stevenson,
chairman
and
I-
am
here,
although
it
says
I'm
a
guest,
so
at
least
I'm
here.
A
E
A
A
A
A
E
A
A
E
A
A
H
A
C
B
A
I
I
During
this
project
we
looked
at
how
many
boards
the
city
has
and
how
many
boards
other
cities
of
our
comparable
size
have
what
we
found
is.
We
have
sometimes
10
20
more
boards
than
other
cities
our
size,
so
we
started
looking
at.
Why?
One
of
the
reasons?
Why
is
because
we
technically
have
a
separate
board
for
multiple
different
pension
and
disability
funds
within
the
city?
I
I
believe
you're
fully
staffed
at
this
point
with
the
swearing-in
of
the
new
member
tonight,
and
so
so
it's
been
difficult
for
us
to
get
members
for
some
of
the
other
boards,
especially
the
police
and
firefighters.
Those
are
called
Old
hire
funds
and
the
firefighters
code
requires
us
to
appoint
City
Firefighters.
But,
as
you
probably
know,
we
don't
have
a
fire
department
anymore.
We
contract
with
Denver
fire,
so
we
are
proposing
that
nerp
and
the
other
boards
consider
consolidating
into
a
single
board
under
nerp.
I
Essentially
what
we're
looking
at
is
or
what
we're
proposing
is
that
a
nurb
consider
adding
an
agenda
light
item
for
these
other
boards
and
possibly
adding
a
few
more
members,
perhaps
at
a
retired
member
of
our
fire
fight
fire
department,
possibly
retired
member
from
police,
and
then,
if
any
issues
should
come
up
regarding
those
boards,
then
you
already
have
a
scheduled
meeting
and
it's
already
on
your
agenda
line
item.
What
we
found
is
these
boards
have
not
met
in
quite
some
time
other
than
nerp
and
so
I.
I
A
I
won't
entertain
any
discussion,
but
I
personally
am
more
than
open
to
it.
Anything
that
will
streamline
anything
in
the
city
and
cut
red
tape
and
and
make
things
easier
to
do.
I'm
in
favor
of
I
did
know
some
of
our
former
firefighters,
who
retired
about
the
time
I
did
and
I
might
make
some
suggestions
on
that.
Rita.
I
I
F
Okay,
thank
you,
I
appreciate
that,
and
is
it
possible
I
mean
I
know.
Each
of
these
boards
runs
a
little
bit
differently
than
this
board,
and
I
mean
we
have
an
Actuarial
that
I
know
the
police
has
their
own
Actuarial,
and
so
what
all
I
think
we
need?
Maybe
some
history
before
we
just
go
forward
with
this
I
I,
absolutely
agree
that
they
need.
They
need
oversight
and
and
I
think
that
this
would
be
a
great
board
to
do
that.
A
Could
I
make
the
suggestion
Tamara
that
we
schedule
this
discussion
for
next
meeting
and
perhaps
set
a
goal
of
accomplishing
this
I?
Guess
you'd
call
it
a
merger
or
consolidation
by
the
end
of
the
year.
If
that
would
make
any
sense,
that
would
give
us
time
Rita
to
explore
all
all
the
contingencies
and
I
think
you've
probably
been
doing
that
Tamara,
but
we
we
need
to
catch
up.
So
is
there
any
other
discussion
or
anything
that
anybody
else
would
like
to
suggest.
I
If,
if
I
could
weigh
in
the
response
council
member
Russell's
question,
it's
my
understanding
that
the
other
boards
have
not
been
able
to
get
quorums
because
they
haven't,
they
don't
have
qualified
members,
so
the
history
and
and
what
they've
been
doing.
We
don't
have
good
records
on
that
because
they
haven't
met
in
quite
some
time.
So
it's
it's
a
bit
of
a
gray
area
for
us,
but
I'm,
happy
to
get
last
minutes
and
and
any
information
I
can
from
City
staff
from
our
records.
H
F
A
Well,
let
let's
look
at
it
this
way,
then,
at
the
next
meeting
we
would
at
least
have
a
discussion
and
plan
on
voting
and
maybe
between
who,
however,
many
would
need
to
have
input
or
would
like
to
have
input.
We
could
either
schedule
a
meeting.
I,
don't
know
what
the
legalities
would
be
Tamara.
You
can
probably
tell
us
on
that
if
we
needed
to
have
a
meeting
to
discuss
it
so
that
it
would
be
on
public
record,
I
would
be
open
to
that.
E
D
D
You
know
in
a
vest
and
investing
those
assets,
whereas
those
other
plans
are
covered
by
fppa,
so
they're,
getting
all
that
administrative
stuff
is
done
by
fppa,
so
it
doesn't
seem
as
though
it's
quite
as
Hands-On
you
know
for
for
this
particular
or
for
those
boards
that
they
really
I,
don't
want
to
say
they
do
anything.
But
you
know
a
vast
majority
of
the
the
heavy
lift
is
done
by
fppa,
and
then
they
provide
those
reports
to
the
city
so
that
the
city
knows
what
kind
of
contributions
they
would
need
to
make.
D
A
I
And
Paul,
thank
you
for
your
comments,
because
that
was
a
concern
of
mine
and
other
City
staff
is
that
City
staff
gets
these
reports,
but
we
want
a
board
or
some
sort
of
oversight
to
look
at
it
to
look
at
them
and
make
sure
there's
nothing
of
concern
right
now
we
receive
them
and
and
that's
it,
and
so
we
would
like
to
attach
them
to
the
nerp
agenda.
Just
so
just
so,
there's
some
oversight
and
it's
public
and
everything's
on
the
up
and
up.
A
C
D
A
H
I
I
If
we
have
any
to
see
what
type
of
action
has
been
required,
I
also
do
have
some
analysis
from
outside
counsel.
We
retained
outside
counsel
to
evaluate
all
of
this
and
and
recommend
this,
and
this
is
one
of
the
things
they
recommended
to
improve
efficiency.
So
I
will
plan
to
create
a
packet
of
additional
information
to
help
guide
you
and
then,
if
you
do
want
to
vote,
perhaps
next
meeting.
A
That
would
seem
a
good
path
to
follow.
Paul
is
your
hand
up
again
or
am
I
great
I
thought
it
went
off
and
then
I
thought
come
back.
So
great,
okay,
that
being
taken
care
of
I
would
like
to
go
to
you
Paul
for
the
actuary,
Actuarial
valuation
report
and
I.
Think
it's
plural
now,
I
I.
Would
you
just
go
ahead
with
that.
D
Absolutely
well
I
know
that
the
chair
has
a
dinner
reservation,
so
I
try
to
keep
my
comments
under
an
hour
and
a
half,
but
no
we're
here
for
I
hope
you.
If
can
everyone
see
the
screen
just
to
make
sure
I'm
not
very
good
at
Microsoft
teams,
but
I
think
you
should
see
our
presentation
yeah
great.
So
what
Christie
and
I
are
here
to
present
are
the
results
of
the
January
1
2022
valuation.
You
may
think
yourself.
D
and
so
Christy
and
I
are
going
to
talk
again
about
what
happened
as
of
that
valuation
date.
But
then
I'm
also
going
to
talk
just
for
a
moment
about
you
know
what
what
happened
in
2022.
That
could
affect
the
evaluation
that
we
are
working
on
right
now
and
so
we'll
jump
in
with
some
of
the
highlights.
I'll
go
through
this
slide
and
then
I'll
pass
over
to
Christy
to
go
through
some
of
the
details,
but
there's
a
couple
trends
that
are
that
are
really
starting
to
stick
out.
D
First
of
all,
active
populations
continuing
to
decrease
so
we're
down
to
68
active
members.
We
were,
you
know
well
over
100
members
a
few
years
ago,
so
we're
seeing
this
continual
decrease
in
membership.
What
that
typically,
would
mean
is
that
you
know
we
do
this
calculation
of
a
contribution
rate
we're
making
contributions
based
upon
a
rate
of
pay,
and
so,
if
pay
keeps
decreasing
and
we're
saying
we
want
say
you
know,
30
percent
of
pay,
but
pay
is
down
15
percent.
D
Then
we're
going
to
get
about
15
fewer
contributions
than
we
would
have
expected,
and
so
that's
something
that
we
need
to
keep
an
eye
on.
And
if
it
continues
to
happen,
then
we
may
have
to
talk
about
some
strategies
to
address
that
in
terms
of
getting
contributions
into
the
plan.
So
we're
really
closely
monitoring
that,
in
terms
of
that
actuarily
determined
contribution
or
the
contribution
that
needs
to
be
made
here
in
calendar
year,
2023
to
the
plan
that
total
amount
decreased
to
25.2
percent
down
from
30.8
percent.
D
We
net
out
the
employee
contributions
and
we're
left
with
a
city
portion
of
22.2
percent
of
pay.
So
a
nice
reduction
year
over
year,
Christie's
going
to
talk
about
some
of
the
reasons
for
that.
But
you
know
don't
get
too
excited
because
as
we'll
get
to
at
the
end,
because
of
the
results
of
the
Capital
markets
in
2022
that
rate's
going
to
go
back
up
here
when
we
do
the
evaluation
we're
working
on
right
now.
D
Talking
about
investment,
return
again
very
stale
numbers,
because
this
is
actually
calendar
year.
2021
about
a
14
return,
your
market
value
of
assets
so
beating
your
expectation
of
six
percent
by
almost
eight
percent.
So
you
know
just
a
really
strong
year
and
then
we're
going
to
present
a
lot
of
these
results
on
what
we
call
the
smooth
value
of
assets
or
the
Actuarial
value
of
assets.
And
we
expect
that
asset
value
also
to
return
six
percent
and
that
actually
returned
9.8
percent
so
again
another
strong
year
for
the
Actuarial
value
of
assets.
D
Finally,
the
funded
ratio,
which
is
the
ratio
of
our
assets
to
our
liabilities,
increased
to
85
and
a
half
percent.
So
you
know
again
as
of
this
day,
if
we
were
sitting
here
a
year
ago.
Having
this
conversation,
we
said
boy,
things
are
really
looking
good,
but
again,
I
just
want
to
temper
that
just
a
little
bit,
because
we
had
a
really
challenging
2022.
and
with
that
I'm
going
to
pass
it
over
to
Christy
to
to
go
over
some
of
the
details
for
us.
G
Thank
you
Paul,
so
we're
just
going
to
jump
right
in
with
starting
with
some
of
your
plan
membership
data
really
focusing
on
what's
happening
with
the
active
members.
Over
the
year
of
2021,
we
saw
one
age
retirement,
two
drop
retirements,
along
with
that
we
saw
15
terminations
and
only
10
new
members.
So
from
all
that,
you
can
really
see
that
the
rate
at
which
members
are
leaving
the
plan
is
a
bit
quicker
than
they
are
entering
the
plan,
which
is
contributing
to
this
decrease
in
active
population.
G
That
Paul
mentioned
on
the
previous
slide,
along
with
that
decrease
in
the
active
population,
we're
seeing
a
decrease
in
that
payroll.
So
over
the
year
of
20
from
2020
20
January,
1
2021
to
January
1
2022,
we
saw
about
a
six
percent
decrease
in
payroll,
and
that
is
also
then
going
to
impact
the
amount
that's
being
contributed
to
the
plan.
As
Paul
mentioned,
the
plan
is
contributed
to
as
a
percent
of
pay,
and
this
also
includes
employees
contribute
to
the
plan
at
three
percent
of
pay.
H
G
So,
along
with
that,
the
average
service
in
the
plan
is
remaining
approximately
stable.
Your
active
average
age
is
a
little
bit
lower
and
that's
due
to
some
of
these
new
members
coming
in
a
little
younger
and
some
of
those
older
members
aging
out
a
couple
other
numbers
to
look
at
here.
We
can
just
see
that
those
members
in
payment
status
stayed
relatively
stable,
so
we
saw
about
one
age
retirement
from
active
membership.
G
We
also
saw
another
retirement
from
our
deferred
basted
members,
and
then
we
saw
a
couple
of
deaths
over
the
year
that
were
balanced
out
by
a
few
new
beneficiaries
overall
remaining
stable
those
deferred
busteds.
These
are
the
people
that
left
the
plan
that
were
had
enough
service
to
be
vested
that
are
expected
to
be
paid
benefits
at
a
later
date,
and
that
went
up
a
little
bit
because
five
of
those
15
other
terminations
were
new
deferred,
bested
members.
G
D
G
G
We're
not
expecting
to
see
that
we're
actually
Paul's
going
to
be
going
over
this
a
little
more
later,
but
we
actually
are
seeing
about
a
negative
11
return
in
2022,
so
that
makes
these
results
a
little
bit
outdated
at
the
moment.
But
another
couple
of
key
things
we
can
look
at
on
this
slide
is:
are
those
member
contributions
that
Paul
and
I
were
talking
about?
Is
that
you
can
see
the
member
contributions
decreased?
A
little
bit?
That's
going
to
be
due
to
the
decrease
in
payroll.
G
All
members
are
still
contributing
at
three
percent,
but
with
less
contributing
that
amount
is
going
to
go
down
with
that
going
down
the
city
contributions
are
increasing
as
they're
going
to
have
to
make
up
for
some
of
that
lower
contribution.
Overall,
the
benefit
payments
are
increasing.
There
were
a
few
more
people
getting
benefit
payments
along
with
that.
Some
of
the
people
retiring
are
receiving
higher
benefit
payments,
so
that
becomes
a
greater
need
to
be
able
to
contribute
to
continue
to
pay
those
benefits
long
term.
G
Of
assets,
so
all
of
our
calculations
are
actually
going
to
be
based
on
this
value,
which
we
consider
a
smoothed
value.
So
we're
really
taking
those
Market
values
and
we're
going
to
take
any
gains
and
losses
from
year
to
year
and
smooth
it
over
five
years,
so
that
the
funding
decisions
we're
making
for
the
future
of
the
plan
are
not
based
on
these
really
volatile
Market
years,
where
we're
going
from
a
year
of
14
rate
of
return
down
to
negative
11.
G
Instead,
we're
working
on
this
more
smooth
value
where
we
have
our
actual
value
of
assets
over
2021
returned
a
value
close
to
10
percent,
and
this
is
because
we
are
recognizing
those
gains
from
actually
the
last
three
years
of
really
impressive
asset
returns.
2019
was
about
17,
so
we're
recognizing
a
chunk
of
that
in
this,
along
with
the
11
from
2020,
and
then
that
14
2021
is
all
currently
getting
recognized
little
pieces
of
it
in
these
Actuarial
value
of
assets,
which
allowed
us
to
have
a
gain
and
return.
G
G
So
that
is
really
the
purpose
of
using
this
Actuarial
value
of
assets
and
overall,
seeing
all
those
prior
gains
and
getting
to
recognize
them
in
this
figure
really
helps
us
moving
forward
to
be
able
to
make
solid
funding
decisions
based
on
a
more
stable
value.
That's
not
as
impacted
by
all
of
that
volatility.
G
H
G
Saw
a
decrease
in
that
liability
from
47
million
down
to
46.3
million,
which
was
actually
about
576
000
less
than
we
expected,
and
the
primary
source
for
those
gains
is
due
to
some
of
your
withdrawal
experience.
So
we're
not
seeing
people
staying
in
the
plan
as
long
and
therefore
they're
not
accruing
as
much
liability
as
we
were
expecting
them
to
over
time,
which
has
been
really
helpful.
G
So
from
year
to
year,
we
can
see
that
we've
actually
seen
gains
on
this
on
the
accrued
liability
over
the
last
two
years,
and
that
is
it's
mostly
due
to
some
of
those
expectations
being
not
exactly
as
we
imagined,
so
that
that's
actually
really
good
for
the
plan
and
and
a
greater
scheme
of
our
gains
and
losses.
Here.
If
we
go
on
to
our
next
slide,
we
will
see
the
bigger
picture
of
gains
and
losses
over
the
year.
G
So
in
2021
it
was
a
big
gain
year
on
both
that
investment
return
and
our
liabilities.
So
as
we
see
that
investment
return
was
a
really
really
big
part
of
the
gains
over
the
year,
that's
that
1.3
million
gain
on
the
Actuarial
value
of
the
assets.
So
that's
the
biggest
portion
of
the
gains
to
the
plan
over
the
year
and
again
just
to
Tamper
expectations.
E
G
G
This
really
just
has
to
do
with
how
we
are
assuming
the
timing
of
payments
such
as
payroll
and
benefits
to
come
through
the
plan
versus
when
they're
actually
paid
out,
and
so
there's
just
a
little
bit
of
gains
and
losses
that
we
see
that
fluctuate
from
year
to
year.
But
overall,
it's
a
really
small
piece
of
this
gain
loss
puzzle
to
the
plan.
D
So
Christy
I'll
just
jump
in
real
quick
just
to
provide
a
little
bit
of
context
here.
So
what
this
is
effectively
saying
is
that
you
know
Christy
and
I.
We
have
these
expectations
on
the
liability.
We
have
an
expectation
on
the
assets
and
we
do
this
a
little
bit
of
what
we
call
like
a
gain
loss
report
card
that
says
how
close
were
our
expectations
then
can
I
explain,
or
can
we
explain
why
our
expectations
weren't
met?
D
It's
actually
my
favorite
part
of
the
valuation,
and
so
if
this
is
just,
this
is
measuring
up
about
against
what
we're
doing,
and
so
what
this
is
kind
of
telling
us,
at
least
on
the
demographic
side.
There
we
have
a
couple
years
in
a
row
here
where
we've
seen
these
demographic
gains,
it's
mainly
driven
by
that
termination
experience.
So
again
we
have
this
like
sort
of
churn
on
our
you
know,
active
member
population.
We
have
a
lot
of
people
terminating
or
more
people
than
expected
terminating,
releasing
a
fair
amount
of
liability.
D
G
Thank
you
Paul,
so,
with
that
I'll
have
Paul,
take
us
to
the
next
slide,
which
is
really
the
culmination
of
our
report,
and
this
is
really
one
of
the
main
reasons
that
we're
here
today
is
to
give
you
this
information,
which
is
what
needs
to
be
contributed
to
the
plan.
And
how
do
we
come
up
with
that
number
so,
as
Paul
went
over
in
the
very
first
Slide?
G
The
final
outcome
here
is
a
actually
a
decrease
in
the
determined
contribution
for
the
city
from
27.8
percent
down
to
2020
22.2
percent,
and
this
contribution
amount
is
made
up
of
a
couple
of
different
pieces.
The
first
piece
is
the
normal
cost,
which
is
the
cost
to
replace
each
member
in
the
plan.
So
it's
the
cost
of
the
benefit
for
the
members
in
the
plan.
This
is
the
value
of
the
benefits,
and
then
we
are
going
to
take
out
from
that
normal
cost.
G
We
are
going
to
take
out
the
expected
member
contributions,
which
is
that
three
percent
of
payroll
and
then
the
next,
so
that
leaves
us
with
the
city's
normal
cost.
So
the
part
that
the
city,
the
portion
of
the
benefits,
value
that
the
city
is
providing
to
the
member
and
then
the
final
piece
is
the
amortization.
G
And
this
is
a
really
large
piece,
and
this
is
just
taking
that
the
unfunded
accrued
liability,
which
is
the
amount
that
is
the
difference
between
our
Actuarial
accrued
liability,
which,
on
a
couple
slides
back,
we
had
what
was
about
46.3
million.
So
we're
going
to
compare
that
amount
that
liability
that
the
plan
needs
to
pay
to
the
Actuarial
value
of
assets,
which
is
about
39.6
million
at
the
moment.
And
so
the
difference
between
those
two
amounts
is
going
to
make
up
our
unfunded
accrued
liability
and
that
amount.
G
We
are
then
going
to
spread
as
a
payment
over
time,
and
that
is
going
to
be
our
amortization
payment.
And
that
created
this
final
number
here,
which
is
the
largest
piece
of
that
City
determined
contribution,
which
then
gets
us
to
our
final
actorial,
determined
contribution
of
22.2
percent
of
payroll.
G
So
then,
if
we
take
a
look
at
the
final
slide,
this
is
just
really
to
let
you
guys
know
how
the
contribution
has
changed
over
time.
So
we're
looking
at
a
snapshot
of
about
10
years
here
and
you
can
see
that
up
until
this
year,
that
amount
has
been
continually
increasing
and
it
has
been
both
due
to
the
so
you
can
see
we
have
it
broken
out
into
two
pieces
here.
So
the
bottom
piece
in
the
kind
of
gold
color
is
our
normal
cost
percent.
G
So
that's
the
value
of
the
benefits
to
the
members
and
then
the
larger
green
Chunk
on
top
is
that
amount
that
we
are
paying
in
order
to
pay
down
that
unfunded
accrued
liability.
So,
over
the
last
nine
years
before
2021,
we
saw
a
generally
steady
increase
in
that
unfunded,
a
liability
which
also
meant
that
we
were
seeing
a
study
increase
in
that
amount
that
needed
to
go
toward
paying
off
that
unfunded
liability.
At
the
same
time,
we
were
seeing
the
benefit
value
increasing,
which
Together
made
the
entire
contribution
increase
over
time.
G
Now
we
can
see
this
year
in
2021
due
to
really
positive
investment
returns.
As
well
as
gains
on
that
liability,
we
saw
a
decrease
in
that
unfunded
liability,
which
helped
shift
that
total
determined
contribution
down
which,
again
to
Tamper
expectations.
I,
would
expect
these
lines
to
go
back
up
a
little
after
this
next
year,
primarily
due
to
our
investment
returns.
However,
at
this
point
in
time,
I
can't
speak
to
what
we're
going
to
see
in
terms
of
liability
gains
and
losses,
so
that
might
help
here
there.
D
All
right:
well,
maybe
we'll
pause
there
and
are
there
any
questions
on
either
the
liabilities
the
assets,
this
contribution
rate?
You
know
one
of
the
things
that
goes
through
my
mind
when
I
see
something
like
this
is
while
there's
a
lot
of
volatility
here
you
know
so
is
there
something
we
should
be
looking
at
to
address
the
volatility?
D
You
know
this
is
a
result
of
of
of
the
funding
policy,
and
so
the
city
could
look
at
this
and
say:
well,
maybe
we
just
want
to
keep
our
contribution.
You
know
up
at
the
level
that
it
was
at
you
know
for
another
year,
because
we
know
it's
going
to
go
up
next
year
or
drop
it
down
to
that
22.2
percent,
and
then
you
know
with
the
expectation
that
it
probably
is
going
to
go
up
when
we
look
at
the
the
calendar
year.
D
A
D
J
J
A
J
F
I
just
would
like
to
share
some
historical
I
think.
The
reason
Paula's
here
is
to
to
inform
us
and-
and
let
us
know,
I
know
that
when
John
Moore
was
on
this
board,
he
was
an
Actuarial
also
and
I
think
the
recommendation
comes
from
the
board.
What
we
want
to
do,
how
we
set
things
and
then
the
city
has
to
incorporate
that
in
their
budget
so
and
Paul.
Maybe
you
know
more
how
that
works,
but
I
think
this
board
recommends
what
we
ought
to
do.
D
D
It's
something
that
back
in
2020,
we
put
into
place
where
we
had
a
big
pile
of
unfunded
accrued
liability
at
that
time,
and
we
said
we're
going
to
amortize
that
particular
piece
over
a
15-year
period
And,
so
that
will
be
paid
off
over
15
years
and
then
each
year
going
forward.
If
we
have
these,
you
know
what
we
call
those
gains
and
losses
you
know.
D
So
if
we
do
better
than
we
expected
or
worse
than
we
expected,
then
that
get
particular
gain
or
loss
would
then
be
amortized
over
a
10-year
period,
their
own
individual
10-year
periods,
and
so
the
the
funding
policy
in
and
of
itself
is
very
strong.
It's
just
creating
a
fair
amount
of
volatility,
because
you
know
we're.
D
F
And
I
just
I'd
like
to
add
to
that
a
little
bit.
I
I
do
think
when
the
city,
because
it
may
have
been
back
in
2020
or
2019
when
we
changed
it
and
the
city
really
didn't,
have
the
funds
to
contribute
as
much
as
they
wanted.
I
think
the
board
changed
their
mind
to
amateurize
it
over
15
years
instead
of
10
years.
So
it's
I
think
it
kind
of
can
be
a
give
and
take
yes.
A
D
D
We
certainly
can,
but
one
of
the
one
of
the
things
that
I
would
do
want
to
always
get
across
is
that
these
valuations
are
at
a
point
in
time,
and
so
it's
just
taking
the
information
right
on
that
day,
it
said
what
what's
the
assets
in
the
bank
at
that
point.
What
does
the
liabilities
look
like
at
that
point
and
that's
very
important,
but
it's
also
important
to
understand
where
we're
heading,
and
so
what
I
did
here
on
this
long-term
projection
is
I.
D
Looked
at
what
the
employer
contribution
rate,
how
that's
going
to
materialize
over
time
and
I
started
with
the
line
that
I
presented
last
year,
which
was
the
one
one
2021
valuation
which
is
that
purple
line,
and
it
showed
that
we
were
going
to
start
about.
You
know
that
27
rate
and
then
it
was
going
to
come
down
a
little
bit,
sit
around
20
head
back
up
and
then,
ultimately,
when
we
have
all
of
our
unfunded
crew
liability
paid
off
we're
going
to
be
contributing
somewhere
in
the
neighborhood
of
eight
eight
and
a
half
percent.
D
You
know
that's
down
to
20
36
2037
Arena.
The
green
line
is
this
year's
valuation.
You
can
see
it's
significantly
lower
than
it
was
when
I
presented
last
year
and
that's
a
direct
result
of
the
investment
rate
of
return
coming
in
at
that
13.8
percent,
and
so
what
I
did
I
just
recast
that
that
purple
line
to
say
okay,
what
would
happen
if
the
return
was
13.8
percent
in
one
year,
just
to
show
you
that?
D
There's
consistency
in
the
projections
and
that
what's
really
driving
this
train
here
and
these
projections
is
that
one
year's
return
in
a
moment
I'm
going
to
get
to
what
this
looks
like.
If
we
recognize
the
2022
actual
rate
of
return,
it
looks
it
doesn't
look
as
great
as
here,
but
we'll
move
on
to
the
dollar
amounts.
Again
dollar
amounts
are
going
to
be.
You
know
we're
projected
to
be
lower
if
we
had
a
six
percent
return
going
forward,
and
then
we
look
at
our
funded
status
and
I
think
this
is
what's
most
important.
D
This
shows
that
our
funding
policy
is
working.
This
shows
that
you
know
it
doesn't
matter
what
the
investment
rate
of
return
is
we're
going
to
calculate
a
contribution.
That's
going
to
put
us
on
a
path
to
get
to
that
fully
funded
Point
somewhere
in
the
neighborhood
of
2035.,
and
so
this
is
just
this.
Is
this
helps
me
sleep
at
night
to
say
that
boy,
we've
got
a
really
good
plan
in
place.
D
That's
going
to
put
us
on
a
path
to
being
where
we
want
to
be
in
a
very,
very
reasonable
period
of
time,
just
again
to
touch
in
that
2022,
just
as
an
estimate,
I
plugged
in
negative
10.86
I
think
that
I
just
received
the
audited
assets
two
days
ago
from
from
Kevin
angles
of
the
city
and
the
return
was
actually
somewhere
like
the
return
that
I
would
calculate
was
somewhere
in
the
neighborhood
of
10.4
percent.
So
this
is
just
a
little
bit
more
pessimistic
than
that.
D
So
the
purple
line
is
that
the
valuation
with
the
six
percent
2022
return
and
then
the
red
line
is
the
the
same
valuation
line,
but
with
a
negative
10.8
percent
2022
returns.
You
can
see
that
there's
going
to
be
this
upward
pressure
on
that
contribution
rate
over
time
we
could
potentially
Eclipse.
You
know
40
percent
of
pay
in
2032
and
again
this
is
absent
any
over
performance
whatsoever,
and
so
that's
where
we
could
be
headed.
D
D
You
can
see
that
that
funded
ratio
growth
in
the
first
few
years,
because
of
that
poor
return,
it's
mitigated
somewhat,
so
we've
kind
of
stayed
where
we're
at
and
then
we
have
this
little
drop
off
in
2027,
but
then
we're
right
back
on
track
to
get
to
very
close
to
fully
funded
by
2035.
and
again.
This
is
your
funding
policy
at
work.
D
Yeah,
you
know
the
board
did
a
lot
of
heavy
lifting
the
last
couple
of
years,
especially
in
2020.
When
we
you
know,
we,
we
changed
that
amortization
period
to
do
that
15-year
amortization
period,
but
at
the
same
time
we
really
strengthen
our
mortality
assumption.
We
went
down
to
a
six
percent
discount
rate.
You
have
the
you
know,
that's
pretty
much
the
best
discount
rate
of
any
of
your
peers
in
the
you
know,
but
pretty
much
in
Colorado,
but
certainly
in
the
the
Denver
in
sort
of
metro
area.
D
So
there's
a
lot
of
heavy
hard
decisions
that
have
been
made
and
sound.
Now
it's
just
a
matter
of
let's
let
this
play
out
and
let's
make
sure
that
we
make
the
contributions.
Let's
make
sure
that
we're
everyone's
aware
of
where
those
contributions
are
going
to
be,
and
then
you
know
we
can
plan
accordingly,
but
we
have
a
plan
in
place.
That's
that's
going
to
put
us
where
we
want
to
be.
A
J
I
just
want
to
know
assumption
you
used
to
do
the
long-term
projection.
We
are
targeting
six
percent
as
the
return
on
actual
value
of
assets
right
and
you're
thinking.
You
might
change
the
increase.
The
termination
rate
based
on
the
the
current
situation,
and
was
it
estimated
at
annual
salary
increase
in
your
projection,
like
three
percent
four
percent
or
five
percent
yeah.
D
It's
somewhere
in
the
neighborhood
of
I
think
it's
around
three
percent
is
what
what
I
have
plugged
in
there.
Okay.
So
what
would
happen?
If
we
don't
see
that
three
percent,
then
we
might
see
that
rate
of
pay
increase
a
little
bit
higher,
but
that
rate
of
pay
times
the
slightly
lower
payroll
would
end
up
in
about
the
same
amount
in
terms
of
dollars.
D
J
D
And
so
what
would
happen
in
a
situation
like
that
is
we
would
see
these
pays
increase
that
accrued
liability
number
would
go
up,
but
then
over
time,
because
we're
now
working
off
a
higher
payroll
base.
If
we
get
25.2
percent
of
a
higher
payroll
base,
we're
going
to
have
much
more
money
coming
into
the
plan,
that's
going
to
pay
off
that
increase,
that
initial
increase
in
accrued
liability,
and
so
it
it
doesn't
end
up
being
a
complete
wash.
But
it's
it's
pretty
close
to
it.
You
know,
as
you
ladder
out,
that
projection,
see.
D
E
E
A
D
A
A
C
A
B
B
A
B
Excellent,
so
quick
performance
summary
in
the
quarter.
Fourth
quarter
of
2022,
the
portfolio
is
up
about
five
and
a
half
percent
nice
bounce
back
compared
to
the
first
three
quarters
of
the
year,
which
saw
negative
returns
in
each
subsequent
quarter.
That
brought
the
total
calendar
year
performance
for
the
defined
benefit
plan
to
minus
10.7
percent
for
the
calendar
year.
B
B
Briefly,
looking
at
the
allocation
as
of
the
end
of
the
year,
that's
the
table
on
the
far
right.
You
can
see
the
asset
classes
listed
the
total
market
value
allocated
to
each
of
those
areas,
the
current
allocation
as
a
percentage
and
how
that
compares
to
the
long-term
Target
allocation.
All
in
all
you
know,
plus
or
minus,
you
know
two
percent
roughly
across
all
those
different
asset
classes.
So
I'm
pretty
happy
with
with
where
things
are
from
an
allocation
standpoint.
B
B
And
to
keep
things
moving,
I'll
just
quickly
touch
on
the
major
indices.
Of
course,
as
I
mentioned
difficult
time
frame,
we
finally
did
see
some
positive
returns
in
the
fourth
quarter.
Those
are
those
blue
bars
that
are
actually
above
the
line
for
once
in
2022,
so
strong
bounce
back
across
equities
and
fixed
income.
B
A
B
B
So
moving
forward
just
to
get
kind
of
in
lieu
of
time,
we'll
skip
past
some
of
the
asset
allocation
and
policy
summaries,
because
we
will
be
talking
about
a
new
potential
asset
mix,
so
my
apologies
as
we
skip
through
to
some
of
the
the
kind
of
key
fiduciary
takeaways
right
here
on
the
manager
scorecard.
There
were
a
few
changes
throughout
the
quarter
that
I
wanted
to
touch
on
so
again
this
this
highlights
any
changes
across
management
teams.
Personnel
performance
concerns
any
other
concerns
that
might
be
popping
up
throughout
the
quarter.
B
So
you
do
see
a
few
blue
boxes
there,
the
first
one
there
under
people,
three
lines
down
Harbor
capital
appreciation.
This
is
actually
pretty
unfortunate.
One
of
the
co-portfolio
managers-
Sig
sigalas-
he's
actually
the
founder
of
this
strategy,
actually
passed
away
towards
the
very
end
of
last
year,
certainly
surprising
to
us,
there's
still
three
other
co-portfolium
managers
that
are
actually
managing
the
day-to-day
assets
and
making
allocation
decisions,
but
we
certainly
wanted
to
bring
that
forward
is
something
that
we
will
continue
to
monitor
on
a
go
forward
basis.
B
So
very
shocking,
and
certainly
sad
news
there
and
something
we
wanted
to
bring
to
the
group
as
a
minor
concern
again,
doesn't
change
our
thoughts
on
the
strategy,
but
wanted
to
bring
that
forward.
Two
other
additional
updates
asset
base,
which
is
about
halfway
over
and
about
halfway
down.
You
see
a
blue
box
for
Pimco,
that's
the
dynamic
bond
fund.
They
had
a
minor
concern
for
asset
flows,
so
they
have
seen
some
assets
flow
out
of
the
strategy.
B
Actually,
a
lot
of
those
have
gone
into
kind
of
the
the
flagship
strategy
called
Pimco
income
fund,
which
we
may
want
to
talk
about
here
today.
All
in
all,
this
strategy
has
done
a
great
job
from
a
performance
standpoint,
but
didn't
want
to
to
make
note
of
of
some
flows
coming
out
of
that
particular
investment
and
then,
lastly,
performance.
That's
the
third
column
from
the
right
about
a
third
of
the
way
down,
American
Funds,
Euro
Pacific
growth
fund.
B
We
did
just
just
downgrade
that
from
a
performance
standpoint
based
on
some
recent
performance,
though
we
still
think
again.
This
is
a
high
conviction,
manager
and
I'll
talk
a
little
bit
really.
They
had
some
exposure
to
emerging
markets
and
China
equities,
specifically,
which
have
hurt
their
performance
in
the
last
12
to
18
months.
B
As
a
result,
that's
brought
down
some
of
the
long-term
performance
looking
back
three
to
five
years
still,
if
you
got
even
further
seven
to
ten
years,
still
a
really
strong
performer
overall
but
kind
of
part
of
our
process
and
and
going
through.
This
is
if
we
do
get
to
a
point
where
we
see
performance
start
to
underperform
on
a
three
and
five
year
basis.
We
at
least
want
to
make
sure
we
understand
why,
of
course,
and
bring
that
to
the
committee's
attention,
but
but
not
recommending
any
changes
at
this
time.
B
Of
course,
traditional
stocks
and
bonds
had
a
very
challenging
year,
that's
kind
of
the
common
theme
and
main
takeaway
across
2022.
So
you
can
see
you
know,
looking
at
the
year-to-date
column
here
across
a
number
of
the
different
strategies,
for
example
Dodge
and
Cox.
That's
a
large
cap
value
manager
was
down
about
seven
percent
in
the
year,
whereas
the
higher
growth
focused
managers,
like
Harbor
capital
appreciation,
were
down
significantly
more.
B
International
managers
again
challenging
year
kind
of
across
the
International
markets,
down
between
17
and
27
percent,
in
line
kind
of
with
with
their
benchmarks
and
then
flipping
to
the
top
of
the
next
page.
You
know
really
kind
of
focusing
on
fixed
income,
because
there
are
a
couple
of
changes
we
are
recommending
as
part
of
the
asset
allocation
tweaks.
B
So
you
can
see
three
different
managers
that
we're
allocating
to
in
fixed
income,
Dodge
and
Cox
income,
which
is
kind
of
the
more
primary
core
fixed
income
manager
performed
nicely
compared
to
the
Benchmark
done
only
10.8
versus
The
Benchmark,
which
is
down
13
and
then
Pimco,
Dynamic
bond
fund
and
JPMorgan
strategic
income,
both
outperform
quite
dramatically.
These
two
are
very
different
managers
compared
to
Dodge
and
Cox.
They
are
much
more
defensive
in
nature,
much
more
short
term
in
terms
of
the
the
underlying
bonds
they're
purchasing.
B
So
when
you
kind
of
roll
all
the
fixed
income
returns
together
down
about
9.2
percent
compared
to
the
aggregate
Bond
index
or
core
bonds,
which
is
down
about
13
percent
and
then
really
where
we
get
into
the
diversifiers
that
did
really
well
relatively
speaking
and
really
helped
the
portfolio
from
a
performance
standpoint,
floating
rate
loans
down
about
2.4
percent.
We
are
actually
going
to
recommend
getting
out
of
this
asset
class
entirely,
primarily
because
these
were
really
used
as
a
protection
against
Rising
interest
rates.
We've
seen
rates
come
up
dramatically.
B
The
the
10-year
treasury
went
from
1.5
percent
to
nearly
four
percent
today,
so
we
do
think
a
lot
of
those.
You
know,
kind
of
interest
rate
risks
have
been
mitigated,
and
so
we
are
going
to
recommend
actually
getting
out
of
the
floating
rate
vehicle
and
actually
kind
of
reallocating
those
dollars
across
more
traditional
higher
quality,
fixed
income
and
we'll
touch
a
little
bit
more
on
that
briefly,
but
really
kind
of
the
better
performers
real
estate,
principal
U.S
property
fund
up
just
over
four
percent
during
the
year.
B
B
So
I'll
just
pause
and
see.
If
there's
any
questions
on
the
report
itself
and
then
I'd
love
to
spend
I
know
we
only
have
you
know
13
minutes
here
we
I
know
everybody's
got
Valentine's
plans
and
I
respect
that,
but
we
want
to
go
through
kind
of
our
Outlook
or
at
least
a
summary
of
our
Outlook
and
then
talk
about
some
potential
small
tweaks
to
the
portfolio.
If
that
works
for
the
remaining
kind
of
10
minutes
or
so
is
that?
Does
that
sound
good
to
everybody?
B
B
As
a
result
of
you
know,
exponential
government
spending
after
the
covet
crisis,
this
led
to
increased
demand
for
goods
and
ultimately
led
the
Federal
Reserve
to
try
to
combat
inflation
by
raising
interest
rates
at
the
fastest
Pace
in
over
40
years.
As
a
result,
stock
market
saw
its
second
bear
Market
in
less
than
three
years
with
global
stocks,
ultimately
falling
about
18
percent
in
the
calendar
year.
B
This
also
had
a
dramatic
impact
on
the
bond
market,
as
rising
interest
rates
are
generally
a
negative
for
bonds,
especially
when
they
happen
as
quickly
as
they
did
in
2022.
So
we
saw
the
aggregate
Bond
index
fall,
13
percent
in
the
year,
which
is
the
the
most
we've
ever
seen
in
modern
bond
market
history
by
multiples.
I
think
the
worst
previous
bond
market
for
a
calendar
year
in
modern
history
was
down
three
and
a
half
percent
for
the
aggregate
Bond
index
so
almost
four
times
worse
performance.
B
B
quickly.
Just
to
reiterate
that
this
is
looking
at
what
we
call
the
the
table:
a
periodic
table
of
returns
or
investment
quilt
and
just
shows
different
kind
of
patches
on
the
quilt
that
represent
different
asset
classes
and
the
calendar
year
returns
again
kind
of
ranked
from
top
to
bottom
across
each
of
those.
The
one
steady
kind
of
you
know
stream
here
is
that
that
Diversified
portfolio
in
black
is
kind
of
always
in
the
middle
from
a
return
standpoint,
never
the
best,
never
the
worst,
but
when
we
look
at
that
over
long
periods
of
time.
B
What
that
means
is
that,
because
that
volatility
has
been
smoothed
out,
it
allows
those
returns
to
compound
over
long
periods
of
time,
and
so
looking
to
the
right,
you
can
see
that
Diversified
portfolio
did
about
seven
percent
per
year
over
the
last
10
years.
Second,
towards
the
top
in
terms
of
returns
with
volatility
or
standard
deviation
towards
the
bottom
here,
on
the
the
right
hand
side.
So
that's
the
goal
of
diversification.
Of
course,
over
time,
it
never
feels
great.
B
In
the
moment
when,
when
stock
market
is
is
roaring,
your
Diversified
portfolio
is
going
to
fall
behind
and
even
in
years,
like
2022
you're
still
going
to
probably
see
losses
when
there's
a
lot
of
bad
markets.
But
when
you
look
over
long
periods
of
time
that
diversification
really
really
helps
smooth
those
those
returns
long
term
and
so
quick
summary
of
our
Outlook
again
looking
forward.
We
think
the
risks
of
a
recession
have
risen,
certainly
as
a
result
of
substantial
tightening
by
central
banks
around
the
world.
B
Though,
a
lot
of
the
information
we're
seeing
coming
out
in
terms
of
data
in
terms
of
labor
market
in
terms
of
payrolls
are
pointing
to
you
know,
actually
the
possibility
of
kind
of
avoiding
a
recession.
So
you
know
not
sure
when
or
if
we'll
go
into
one.
But
recessions
are
normal,
they're
part
of
again
the
normal
economic
cycle
and
they
ultimately
do
set
the
stage
for
the
next
period
of
growth.
So
I
know
that's
certainly
something
top
of
mind.
B
The
odds
have
increased
again
we're
not
making
any
predictions,
but
we
want
to
be
prepared
in
case
we
do
go
into
a
recession
and
be
ready
for
that
rebound
when
it
happens.
We
do
believe
that
stocks
anticipate
a
brighter
future
long
before
it
becomes
clear
in
economic
news.
So,
generally
speaking,
the
stock
market
bottoms
or
hits
a
low
point
six
to
nine
months
before
more
economic
data,
kind
of
hits
a
low
point
and
we
see
kind
of
economic
data
start
to
turn
around.
So
we
do
recommend
staying
invested
in
equities
and
remaining
Diversified.
B
You
know,
as
we
always
have
number
three-
is
probably
the
biggest
impact
on
future
returns,
and
that
is,
we
had
a
very
painful
bond
market
experience
last
year
with
Rising
interest
rates.
The
one
kind
of
positive
that
comes
out
of
that
on
a
go
forward
basis,
bonds,
look
much
more
attractive
because
interest
rates
are
significantly
higher,
so
we
do
have
much
higher
expected
returns
for
bonds
over
the
next
five
to
ten
years
and
then
number
four
here
you
know
we
did
talk
about
potentially
here
reducing
hedging
allocation
and
real
estate
allocation
in
your
particular
portfolio.
B
You
have
a
lower
allocation
to
hedge
fund
strategies
at
10,
so
we're
actually
recommending
slightly
bumping
that
up.
This
is
more
geared
towards
clients
and
portfolios
that
had
you
know,
15
to
18
percent.
We
are
recommending
coming
down
closer
to
that
kind
of
12
percent
range.
The
reason
being
is,
if
you
recall,
the
reason
why
we
wanted
to
get
into
these
strategies
is
to
kind
of
outperform
bonds
over
a
full
Market
cycle.
Now
that
interest
rates
have
come
up
that
ability
to
outperform.
B
B
So
in
lieu
of
time,
I'm
going
to
skip
forward
a
couple
of
pages,
I
think
that
you
know
the
key
when
we
look
forward
is
still
the
fight
against
inflation.
We're
kind
of
seeing
contradictory
news
flow
out
there.
For
example,
we
are
seeing
you
know
that
inflation
did
peak
in
the
U.S,
and
now
the
January
year
over
year,
number
came
in
at
6.4
percent
off
the
high
of
9.1
percent
that
we
saw
back
in
June,
but
we're
also
dealing
with
a
very
tight
labor
market
which
could
lead
to
kind
of
sustained
higher
wages.
B
When
we
look
at
you
know,
worker
compensation,
so
some
challenges
here,
one
of
the
the
stickiest
components
generally
of
inflation
and
the
most
resilient
is
wage
growth,
because
it's
really
hard
to
go
back
on
wage
growth.
Unless
there
is
a
more
severe
economic
outcome
like
a
recession
that
would
potentially
reset
a
little
bit
of
that
that
labor
force.
So
that's
kind
of
the
challenges
that
we
are
dealing
with.
Inflation
certainly
is
in
a
downtrend
we're
continuing
to
see
that,
but
still
a
long
way
to
go
to
get
to
the
feds
two
percent.
B
You
know
one
thing
that
we
saw
in
2022
is
that
Equity
valuations
came
down
quite
a
bit
really
that
was
just
a
result
of
prices
coming
down,
so
it's
kind
of
a
reset
of
valuation,
so
on
a
go
forward.
Basis
now
equities
look
a
little
bit
more
attractive
than
where
they
were
certainly
coming
into
2022
and
then
really
the
the
big
impact
I
mentioned.
Bond
returns
because
interest
rates
are
higher.
B
We
really
do
expect
future
returns
to
be
much
more
attractive
and
we
do
want
to
talk
about
potentially
utilizing
what
we
call
a
multi-sector
bond
manager
to
help
take
advantage
of
the
market
and
take
advantage
of
reduced
interest
rate
risk.
And
so
we
would
consider
adding
a
new
Bond
manager,
Pimco
income
fund
and
potentially
shifting
some
of
the
allocation
of
the
current
Bond
managers
and
the
floating
rate
loan
allocation.
That
I
mentioned
to
this
new
manager
and
to
other
parts
of
the
bond
portfolio.
B
So
I
know
we're
running
up
on
time,
so
I'm
going
to
skip
forward
to
spend
the
last
few
minutes
on
the
actual
study
itself
and
so
again,
I
know
I.
Think
we've
got
a
couple
new
faces
since
this
time
last
year,
but
to
reorient
everybody.
This
is
the
asset
allocation
study
for
the
city
of
Inglewood
and
focusing
on
the
the
top
left
hand
side
this
time.
Last
year,
when
we
had
this
conversation,
you
can
see
the
different
asset
classes
listed
from
top
to
bottom.
B
B
Again,
that's
the
risk
that
you
could
potentially
have
to
experience
to
earn
that
call
at
five
and
a
half
percent
per
year.
Again.
This
was
what
we
were
looking
at
coming
into
2022.
fast
forward
to
2023,
based
on
Equity
prices
coming
down
valuations
coming
down,
based
on
interest
rates,
moving
up
and
the
future
for
bonds.
Looking
better
we've
revised
our
expectations
upwards,
which
also
reflect,
of
course
a
poor
year
in
2022.
So
for
that
same
portfolio,
if
we
shift
to
the
right
that
darker
blue
column,
it
says
IPS
same
allocation,
you
can
see.
B
We
would
expect
that
portfolio
to
now
earn.
You
know
closer
to
seven
percent,
with
that
same
downside,
risk
of
a
potential
decline
of
up
to
17
percent
in
a
really
bad
Market
environment,
and
then
so.
What
we've
done
from
here
is
kind
of
show
three
different
alternative
mixes,
with
varying
kind
of
stock,
Bond
and
alternative
exposure
and
I'd
like
to
just
kind
of
focus
everyone's
attention
on
mix.
B
One
I
think
that
you
know
makes
the
most
sense,
it's
very
similar
to
the
current
return,
expectation
and
risk
of
the
current
portfolio,
but
does
include
some
of
those
slight
tweaks
that
I
mentioned
previously.
So
the
one
thing
that
you'll
see
that's
been
completely
omitted
is
floating
rate
corporate
loans
we
had
in
a
five
percent
allocation.
B
If
we
look
at
mix
one,
you
can
see
very
similar
return
expectation
with
that
same
downside,
risk
of
7,
17,
so
I
think
that's
kind
of
our
recommendation
is
to
to
focus
on
that
mix
one
but
I'd
love
to
just
pause
here
and
see
if
there's
any
ques,
immediate
reactions
or
concerns
with
that
recommendation
and
again
happy
to
talk
more
about
our
thoughts
on
floating
rate
corporate
loans.
Again,
we
kind
of
think
they've
done
their
job
in
a
rising
interest
rate
environment.
B
As
a
reminder,
those
do
invest
in
below
investment
grade
quality
bonds,
so
they
do
carry
a
little
bit
more
risk
and
now
that
interest
rates
have
risen
dramatically,
we
think
it
makes
more
sense
to
kind
of
spread
that
allocation
around
into
other
areas
of
the
portfolio
that
we
think
are
more
attractive.
Going
forward.
B
A
H
B
E
A
E
B
Just
I
just
wanted
to
take
another
30
seconds
so
as
part
of
the
the
implementation
and
thank
you
for
everybody's
support
of
mix
number
one.
We
did
want
to
make
some
slight
changes
to
the
underlying
managers
within,
say:
fixed
income
I'm,
not
sure.
If
that
needs
a
board
approval
or
I
can
double
check.
The
investment
policy
statement
to
see
if
underlying
manager
changes
do
require
board
approval
or
if
any
of
us
does
have
discretion
there,
so
it
would
be
within
the
domestic
fixed
income
asset
class.
B
A
B
B
And
we
can
follow
up,
so
we
can
still
move
forward
with
the
allocation
change
that
was
voted
on
to
that
mix.
One
and
the
implementation
piece
can
always
come
later.
So
we
can
double
check
the
investment
policy
statement
and
make
sure
that
I
don't
want
anyone
to
feel
Russian.
I'll
follow
up
with
an
email
and
just
stating
hey
here's
the
section
of
the
IPS.
It
says
we
can
or
we
can't
and
then,
if
we
can't
we'll
follow
up
and
find
the
best
way
to
resolve
that
great.
Does
that
work
right
right?