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Description
City of San José, California
Federated City Employees' Retirement Plan Board, September 21, 2023
This public meeting will be held at San José City Hall and also accessible via Zoom Webinar. For information on public participation via Zoom, please refer to the linked meeting agenda below.
Agenda: https://sanjose.legistar.com/View.ashx?M=A&ID=1121317&GUID=F10D784A-73C3-46FB-85A6-D428E1A08C67
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Q
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Which
is
real
assets?
This
is
more
immature
than
others.,
so
you
see
underway
here
two
point:
one
percent
weighted
against
the
three
percent
target..
If
you
look
at
the
bottom
right
number,
you
see
a
twelve
point:
eight
percent
irr,
which
is
really
nice
just
in
an
absolute
sense,
to
have
a
number
of
that
that
big
on
page
nine,
this.
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Q
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Q
Q
I
do
want
to
highlight
public
equity
public
equity
as
an
asset
class
that
isn't
known
for
being
easy
to
outperform
benchmarks..
There's
a
lot
of
information
in
the
market.
private
markets
is
typically
where
you
see
more
ability
to
outperform
fees.,
but
your
public
markets
portfolio,
which
is
led
by
christina
wong
on
your
staff,
is,
has
been
doing
quite
well
for
the
one
year
return.
Q
The
next
few
slides.
I
wanted
to
take
a
look
at
page
thirty
at
private
markets
and
just
point
out
again
one
of
the
reasons
that
you
do
see
the
overweight
to
private
markets
in
the
portfolio
right
now.
If
you
look
at
the
three
year
return
for
private
markets,,
this
is
an
average
annual
return
over
the
last
three
years
has
been
north
of
20
percent..
So
we
did
see
a
lot
of
protection
in
twenty
twenty
two.
We
may
still
see
some
write
downs,
but
I
think
the
fact
remains.
Q
Q
Five,
I
will
skip
ahead..
I
mentioned
the
public
equity
outperformance..
A
lot
of
that
has
been
driven
by
emerging
markets,
equity
in
your
portfolio..
So
you
see
that
the
msci
emerging
markets-
I
am-
I
net
index-
has
had
a
one
year
return
of
three
point:
two
percent:
where
is
your
emerging
markets?
Portfolio
in
the
gray,
was
up
six
percent,
so
almost
double,
and
that
holds
true
again
over
the
three
year
period.,
so
the
average
annualized
return
for
the
emerging
markets.
Your
portfolio
is
six
point:
three
percent.
Q
Q
Q
Q
P
P
P
Q
Q
Q
Q
G
K
We
also
made
a
fix
prospectively..
So
we
once
we
found
out,
we
we
corrected
the
error
in
the
process.
That's
been
taken
care
of
.
and
I
also
have
to
mention
that
uh,
when
it
comes
to
reporting
fees-
and
this
is
manager
fees.
right.,
so
you
will
see
a
fee
report
that
we
present
later
to
the
boards,
and
I
can
assure
the
boards
and
the
city
council
that
the
fee
report
that
I
have
presented
to
the
city
council
every
year
in
the
last
five
years.
The
comprehensive
fee
report
does
include
all
fees.
S
S
O
B
Q
K
Number
is
about
10
percent
nine
point,
eight
percent
in
the
five
year,
seven
and
a
half
percent,
and
both
of
which
are
quite
a
bit
above
the
actuarial,
uh,
rate,
which
I'm
assuming
a
blended
rate
of
six
point.
Eight
percent..
So
we've
really
done
significantly
better,
both
on
a
three
and
five
year
basis
and.
K
And
so
we
really
tried
to
model
ourselves
after
them,
and
part
of
that
was
was
good
governance
and
delegation
of
authority
with
the
appropriate
checks
and
balances
which
allowed
us
to
be
nimble.,
so
the
board
supported
in
two
twenty
nineteen.
When
I
came
and
said,
we
need
to
increase
our
little
bit,
sets
to
thirty
percent
of
the
portfolio
and
subsequently
the
board's
acted
very
quickly
and
supported
us.
When
we
said
we
have
to
redeploy
it
a
little
bit
to
hide
bad
assets
in
march.
K
J
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K
B
Q
This
will
be
quick
and,
to
echo
all
the
comments,,
you
know
we
can
control
process
and
governance..
We
can't
control
the
markets,
and
so
that's
what
we
focus
on
is
the
process
of
governance.,
but
in
order
to
report
further
on
the
markets
for
your
health
care
trust,,
this
will
be
relatively
quick
because,
as
you.
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Q
Q
K
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A
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N
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V
V
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V
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K
A
C
K
G
I've
noticed
in
my
tenure
has
encouraged
people
to
want
to
make
change
for
a
plan
that
is
fundamentally
long
term
and
all
of
the
stochastic
modeling
that
we
get
from
makita
takes
into
account
various
drawdown
scenarios,
various
interest
rate
hikes,.
All
that
sort
of
stuff
and
trustees
are
in
the
habit
of
what
they've
read
or
seen
lately
in
the
last
two
or
three
months
picked
up
a
newspaper,
read
a
paper
and
to.
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B
K
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D
T
A
wordsmith
or
what
we've
got
here
is
the
first
sentence
takes.
One
of
your
positions
in
the
second
sentence
takes
the
other
of
your
positions,
and
we've
got
them
conflated
in
the
same
thing
here.,
and
so
because
the
first
sentence
only
refers
to
a
formal
asset
allocation
study.
That's
going
to
be
undertaken.
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Y
Y
Y
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P
Sixteen
and
a
half
percent,
but
the
source
of
that
return
is
quite
different,
so
in
twenty,
when
he
was
in
private
markets,
we're
actually
generating
a
lot
of
that
return..
So
as
a
result
of
that,
the
private
managers
were
accruing
large
incentives,
whereas
in
twenty
twenty
two
we
had
a
negative
nine
percent
return.
K
K
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B
B
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B
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D
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D
D
D
B
D
B
B
B
S
S
S
S
S
S
S
B
Z
Z
Z
F
B
O
O
B
X
X
It
integrates
the
agenda
data
with
the
ipad.
That's
the
I
legislate
application
that
you
all
are
using
on
your
ipads.,
so
the
proposed
fifth
amendment
would
extend
the
contract
by
an
additional
year
until
october
21st,
twenty
twenty
four
for
an
annual
cost
of
approximate
eight
thousand
dollars..
We
are
requesting
the
board
to
extend
the
contract
agreement
termination
date
for.