►
Description
San José Federated City Employees' Retirement Board
View Agenda at https://sjrs.legistar.com/View.ashx?M=A&ID=772974&GUID=6D113ECF-387A-4680-B088-FC1729286988
A
A
B
A
A
Investment
is
an
essential
government
function
of
the
board
and
buying
an
occurrence
shelter-in-place
order
from
the
county
health
officials,
thanks
Bob
the
governor's
and
where
some
orders
and
watch
13th
and
17th,
which
offended
certain
provisions
of
the
state's
open
meeting
laws
and
the
obligation
of
the
board
in
its
committees
to
fulfill
their
fiduciary
duty
to
preserve
and
protect
the
assets
of
the
plans
for
the
health
and
welfare
of
our
members
and
the
beneficiary.
The
board
intends
to
proceed
as
follows,
and
I
have
five
items
here.
A
More
than
the
committee's
will
notice
and
regular
meetings
and
compliance
with
the
Brownback
notice
and
the
gender
coordinates
as
revised
by
the
governor's
orders
and
not
to
the
medians
of
wardens.
Committees
may
take
place
with
any
and
all
trustees
appearing
ten
o'clock.
Telephonically
forum
does
not
have
to
be
located
within
the
city
limits.
A
Three:
the
board
has
designated
the
accessible
offices
of
the
office
of
retirement
service,
North,
verse
3
as
the
single
physical
location
from
which
members
of
the
public
may
participate
and
board
and
committee
meetings.
We
also
may
make
electronic
and/or
telephonic
access
available
to
the
public,
in
which
case
we
may
dispense
at
the
physical
public
location
has
authorized
by
the
governor
when
making
people
are
as
premises
available
to
the
public.
A
The
board
and
committees
will
designate
one
more
more
or
four
s,
employees
to
be
physically
present
applicable
RS
officers
in
order
to
facilitate
the
public
participation
in
the
meetings
subject
to
the
relevant
social
distancing
requirements
also
imposed
by
civic
and
health
officials
you
and
their
functions.
We
believe
that
these
employees
are
exempt
from
Santa
Clara,
County
shelter
in
place,
order
and
number
five.
All
persons
attending
meetings
must
identify
themselves
upon
entering
the
meeting,
whether
physically
electronically
with
telephonically.
A
The
chair
will
find
members
of
public
an
opportunity
to
comment
at
appropriate
times
in
the
agenda
moving
forward.
This
procedures
shall
remain
in
place
until
further
action
of
the
board,
so
the
fire
I
just
mentioned
a
preliminary
action
necessary
to
our
proceedings.
With
today's
agenda
agenda
items,
I
call
for
motion
to
confirm
these
findings
and
procedures.
So
could
I
have
a
motion
to
accept
these
five,
a
procedures.
A
C
A
A
Their
chair
will
be
the
public
and
opportunities
because
agenda
agenda
item
and
again,
at
the
end
of
the
meeting
under
public
comments
to
speak
of
any
item
not
on
each
other,
as
within
the
subject
jurisdiction
of
the
board.
Well,
lastly,
we'll
continue
to
explore
technology
to
allow
broad
participation
in
the
board's
deliberations
so
that
orders
of
the
games
have
have
the
one
agenda
item.
A
E
Thank
You
chair
Castellano,
firstly,
I
want
to
thank
all
board
members
for
making
it
to
this
special
meeting.
I
know
these
are
difficult
times
and
it
is
a
is
a
weekday
during
working
hours.
So
thank
you
for
carving
out
time
to
be
here,
and
this
is
a
very
important
meeting
and
which
is
why
we
call
for
a
special
meeting.
E
The
presentation
is
going
to
be
largely
dark
red
Makena,
followed
by
parents,
but
I
would
like
to
offer
some
introductory
remarks.
Private
Nikita
coming
online
and
I
want
to
set
the
stage
for
why
we
are
meeting
here
today
and
some
of
the
actions
that
we
need
to
take
at
the
end
of
the
presentations
and
discussion.
So,
firstly,
you
know.
Obviously
this
is
a
tragedy
of
epic
proportions
with
and
hence
tremendous
medical
and
healthcare
ramifications
to
it.
E
I'm
not
qualified
to
speak
on
that
part
of
it,
but
it
also
has
some
economic
ramifications
and
some
ramifications
for
investing,
and
that's
the
part
that
we
are
here
to
tackle
today.
As
you
all
know,
some
of
you
have
been
on
the
board
longer
than
others
and
some
of
your
participants
in
the
plan.
We
had
a
defensive
posture
in
our
plans
for
a
long
time
and
that
has
actually
come
in
handy
through
the
bull
market.
It
seems
like
our
returns,
were
average
compared
to
our
peers,
but
this
is
what
we
were
preparing
for.
E
We
were
preparing
for
a
market
meltdown
and
if
the
mental
happens
to
lessen
the
impact
for
our
sponsor
now
there
are
volumes.
There
are
several
parts
in
that
portfolio
that
have
actually
protected
us
and
you
can
never
completely
insulate
yourself
from
a
downturn
because,
obviously,
if
you
want
to,
if
you
were
to
do
that,
shotgun
and
if
you
get
no
returns
from
your
portfolio,
but
what
we've
done
instead
is
we
have
managed
and
put
together
a
globally
diversified
portfolio.
E
That's
helped
us
in
the
counter
and
Laura
hiding
from
Makena
will
later
on,
give
you
some
numbers
of
estimate
in
terms
of
the
impact
its
had
on
our
foreclosures.
But,
as
you
know,
we
we
classify
your
portfolio's
three
distinct
functional
buckets,
a
growth
bucket,
a
low
beta
bucket
and
another
bucket,
which
has
some
inflation
protection
instruments
to
it.
Now
the
growth
part
of
the
bucket
is
going
to
be
impacted
in
the
dumper
has
been
impacted,
especially
in
the
public
market.
Part
of
it
was
its
own.
Private
markets
also
get
impacted
in
the
downturn.
E
So
it's
not
as
obvious
to
us
some
of
the
low
beta
9,
that's
part
of
the
portfolio
of
bridges,
which
has
been
created
to
minimize
the
impact
of
the
downturns.
We
have
the
7
percent
allocation
to
actually
return
strategies,
15
percent
allocation
to
short-term
investment
grade
bonds
and
a
fibrous,
an
allocation
that
even
has
cash
flow
for
a
total
of
27
percent.
E
E
Now
each
Black
Swan
event
is
different
in
2008-2009
it
was
the
global
financial
crisis
and
this
time
is
being
caused
by
a
pendant
right
now,
let's
look
back
at
history
over
the
last
hundred
years,
we've
had
friends
bear
markets
and
the
median
drawdown
of
those
bear
markets
was
34%
this
time
around
on
March
23rd.
Yes,
we
hit
a
low
of
21
91,
and
that
was
thirty
five
point:
four
percent
down
from
it's
February,
19th
peak,
so
consistent
with
the
data
that
we've
seen
for
the
last
well
fair
market.
E
We
did
hit
the
median
this
time
around
and
now
thirty
five
percent
now
in
the
last
three
days-
and
this
goes
to
the
nature
of
the
volatility
in
this
part.
In
the
last
three
days,
we've
had
a
big
bounce
back
on
the
on
the
one
hand,
between
Feb
19th
and
March
23rd.
We
had
the
success
decline
in
the
history
of
every
market
in
this
country
and
in
the
last
period
we
had
the
biggest
bounce
back
since
1930
again
the
market
to
sell
him
up
today.
E
As
of
now
and
we
are
having
to
discuss,
the
market
is
still
down
25
percent
from
its
peak,
so
what
does
it
mean
for
us
right?
On
the
one
hand,
our
plants
are
going
to
experience
some
pain,
the
pain
of
a
drawn-out,
and
which
means
this
is
going
to
decrease
our
funded
ratio,
and
it's
also
going
to
put
some
burden
on
our
sponsor.
What
what's
the
silver
lining
in
all
of
this
is
my
money
in
all
of
this.
E
We
have
to
think
for
a
long
time
that
we
can
even
the
right
opportunity
change
the
risk
reward
profile
of
our
plans
and
set
up
our
plans
for
higher
returns
going
forward,
and
we
may
be
in
the
midst
of
one
such
opportunity,
so
what
Nikita
will
do
and
I'll
come
back,
and
so,
if
it
is
rushing
back
to
the
Makena
and
various
presentations,
Mahina
will
then
I'll
present
to
you
some
options.
So
I
just
wanted
for
the
board
that
we
did
have
two
meetings
prior
to
this
movement.
Three
meetings,
we
are
suing
I,
see
meetings.
B
E
Discussed
and
dedicated
on
these
options
and
came
up
with
the
narrower
set
of
options
which
will
make
easier
for
the
board
to
get
its
hands
along.
You
know
some
of
the
decisions
that
it
can
take
going
forward,
so
I'm
actually
gonna
turn
this
forward
to
Laura
hiding
from
Makita
to
present
for
it
from
the
options
which
will
be
followed
by
the
implications
of
this
and
then
after
their
presentations.
I
will
come
back
and
give
you
some
comments
and
suggestions.
E
D
C
Thank
you,
okay,
thank
you
great,
so
to
follow
up
on
Prabhu's
comments.
We
did
run
an
estimate
for
performance
through
yesterday.
Private
markets
are
always
difficult
to
determine
how
they
performed
on
a
daily
basis.
If
you
were
to
hold
private
markets
at
a
zero
or
unchanged
valuation,
from
what
we
have
in
our
financial
information
from
your
custodian,
the
portfolio
we
estimate
would
be
down
about
nine
percent
since
urine.
C
If
you
were
to
use
a
public
market
return
for
private
markets
and
the
overall
return
would
be
down
something
more
like
13
percent
for
the
year
two
day
period
and
given
the
sort
of
huge
drop
in
equity
markets
that
we've
experienced
lately,
we
expect
that
that
portfolio
return
is
probably
pretty
attractive
relative
to
peers.
That
would
bring
the
fiscal
year-to-date
return
if
you
do
hold
private
markets
at
zero
to
less
than
five
percent
down,
and
we
will
update
you
once
we
have
more
returns
for
that
private
market
portfolio.
C
So,
in
terms
of
the
presentation
today,
we
have
a
document
on
asset
allocation,
which
the
investment
committee
has
probably
said.
It's
seen
a
couple
times
before.
If
anyone
has
any
questions
throughout
the
presentation,
please
stop
me:
I'll
try
to
leave
some
pauses
and
Christian
or
another
consultant
on
our
team
and
will
help
me
present
the
document
as
well.
So
in
terms
of
the
attachment,
the
makita
updated
asset
allocation
analysis
dated
march
2020,
we
have
updated
this
document
since
the
investment
committee
meetings.
C
There's
been
many
iterations,
you
started
working
with
Prabhu
and
his
team
and
looked
at
you
know:
spreadsheets
and
spreadsheets
full
of
different
possible
asset
allocations
to
bring
to
the
board
and
went
back
and
forth
on
those
quite
a
bit
as
we
narrow
those
down.
And
then,
when
we
came
to
the
investment
committee,
we
still
had
about
eight
options
for
them
to
consider,
many
of
which
were
really
similar,
and
so
we
were
able
to
narrow
those
down
as
well
further.
C
So
in
terms
of
the
asset
allocation
process,
I
think
most
of
the
trustees
on
this
call
have
seen
our
analysis
in
the
past,
but
we'll
try
to
go
through
in
detail
about
2291
time
and
try
to
be
as
concise
as
possible.
So,
as
you
all
know,
there's
a
trade-off
between
risk
in
return.
Historically,
a
federated
plan,
given
the
constraints
in
the
city
and
expressed
desires
of
the
city,
has
been
less
equity.
C
We
start
with
mean
variance
optimization,
and
then
we
add,
on
things
like
historical
scenario,
analysis
and
stress
testing.
So
if
you
take
a
look
at
page
3
in
the
presentation
and
I
think
this
chart
is
both
depressing
and
interesting
it.
It
illustrates
how
much
more
difficult
it
is
for
pension
plans
and
investors
in
general
to
earn
a
rate
of
return
that
I
did
necessary
to
pay
benefits.
You
can
see
that
in
the
1980s
and
1990s
really,
you
could
have
been
a
hundred
percent
bond
and
had
a
guaranteed
return.
C
That
would
would
reach
your
6
and
3/4
X
Royal,
soon
expected
return
a
6535
time.
We
beat
bond
portfolio,
however,
and
as
we
sit
here
in
2020
and
no
longer
expected
to
earn
that
six
and
three-quarters
returns,
so,
unfortunately,
a
plant
must
take
on
more
risk
in
order
to
meet
their
benefit
payments.
On
page
four,
you
can
see
an
overview
of
mean-variance,
optimization,
mutant,
Aryan,
optimization,
takes
into
account
an
expected
return,
a
standard,
deviation
or
volatility
level,
and
also
a
correlation
between
asset
classes
for
every
individual
asset
class.
C
Any
model
Makena
and
Lessman
group
puts
together
an
annual
asset
study
every
year
using
entity
year
data
from
the
prior
year.
We've
been
doing
this
for
our
40-year
history
and
we
think
we
we
have
as
good
a
process
as
possible,
and
we
also
think
it's
important
that
we're
an
independent
firm
and
we
don't
managing
the
assets,
because
we
know
that's
an
interest
and
trying
to
you
know
inflate
one
return
or
deflate
a
different
volatility
to
try
to
get
clients
to
invest
in
a
certain
area,
and
we
think
it's
very
academic,
rigorous
process.
C
But
that
said,
putting
one
number
on
an
expected
return
for
ten
or
two
years
for
an
asset
class
was
very
difficult
and
we
know
that
it
won't
be
correct.
So
really
we
we
will
highlight
the
relative
differences
between
different
asset
classes
and
therefore
asset
allocations.
Some
of
the
drawbacks
of
mean-variance
optimization
are
that
it
assumes
a
normal
return
distribution
and
we
all
know
especially
heavy
loads
through
the
last
couple
of
months,
and
the
markets
have
fat,
tails
and
and
crashes
happened
more
than
a
normal
distribution,
but
necessarily
indicate.
C
It
also
assumes
that
there,
the
stable
volatility
over
time.
So
we
all
know
that
today
is
more
likely
to
be
volatile
because
yesterday
was
but
the
mean
variance,
optimization
model.
Necessarily
assumes
that
each
day's
volatility
is
equal
across
the
time
for
SME
with
death,
so
these
drawbacks
of
these
variance
optimization
or
why
we
show
other
types
of
analysis.
Like
historical
scenario,
analysis
and
stress,
testing
and
Chris
will
talk
more
about
that
later.
C
I'll
skip
ahead
to
the
main
page
in
this
document,
for
you
to
consider
which
is
page
6,
so
there
I
apologize
and
these
numbers
are
somewhat
small,
but
we
wanted
to
show
you
the
underlying
asset
classes,
for
each
asset
allocation
here.
So
you
can
see
on
the
far
left
on
page
6,
the
Fed
current
allocation
and
the
prepetition
talked
about
at
the
very
bottom.
You
can
see
the
equities
on
mix
of
each
asset
allocation,
so
you
know
how
you
how
you
classify
some
of
these
individual
asset
classes
is
a
bit
subjective.
C
For
example,
core
real
estate
is,
in
the
other
bucket
everything
else
in
the
other
bucket,
with
the
exception,
commodities
is
a
fixed
income
asset
class
and
we
think
core
real
estate
has
a
bit
more
equity
risk
than
those
other
16
come
and
asset
classes.
We
also
put
private
debt
into
the
growth
bucket
and
include
that
Nemean
equity
allocation
and
that's
another
asset
classes,
sort
of
in
between
equity
bonds.
C
In
terms
of
things
like
return,
the
volatility
and
liquidity,
and
so
we've
tried
to
summarize
at
the
very
bottom
how
much
equity
in
bonds
we
should
be
at
the
classes
hole
each
of
these
allocations
hold.
So
the
bond
percentage
includes
emerging
market
bonds,
hi
Yvonne
and
turn
short-term
investment
grade
bonds,
cash
equivalents,
tips,
investment
grade
bonds
and
long-term
government
bonds,
and
then
segregate
includes
everything
else.
C
Just
for
your
information
as
to
how
we're
calculating
that
equity
bond
mix,
and
so
we
have
the
Fed
current
allocation
on
the
far
left,
which
Makita
expects
to
return
an
average
of
seven
point
three
percent
per
year
with
a
standard
deviation
of
twelve
percent,
and
we
think
it
has
a
fifty
eight
percent
chance
of
achieving
the
six
and
three-quarters
actuarial
assume
great
return
over
the
next
twenty
years.
With
again
a
65
percent
equity,
35
percent
on
mates,
then
we
look
at
three
other
potential
mixes
here.
C
This
is
a
through
C
for
your
consideration
for
adoption
and
then
for
comparison
purposes.
We
show
mix
B,
which
is
the
pure
median
asset
allocation
and
then
a
60/40
global
portfolio.
I
know
we
all
hear
a
lot
about
them.
Why
don't?
We
all
just
invest
in
a
60/40,
so
we
like
we
like
to
show
that
as
a
comparison
option
as
well.
The
peer
median
I
would
take
with
a
grain
of
salt
mix.
D
is
based
on
self-reported
information
for
the
investor
force.
C
Public
defined
benefit
universe
plans
over
a
billion
dollars,
but
many
of
them
report
in
different
ways.
For
example,
Santa's
a
breaks
out
into
emerging
markets,
equity
allocation
from
develops
market
equity.
Many
peer
plans
might
have
just
the
non-us
equity
allocation
and
not
a
dedicated
target
or
emerging
market.
So
if
you
look
at
D,
P
R
plans
had
reported
that
they
had
22%
of
us,
which
is
exactly
what
the
Fed
current
portfolio
has.
So
I
would
take
it
with
a
grain
of
salt.
C
C
So
in
terms
of
the
differences
between
these
portfolios,
you
can
see
at
the
very
bottom,
the
equity
bond
mix.
We've
tried
to
show
you
different
levels
of
the
equity
bond
mix,
which
therefore
correspond
to
different
risk
for
standard
deviation
levels.
So
if
you
take
a
look
at
mix,
a
it's
got
about,
70
percent
equity
McBee
has
about
75,
Moxxi
has
80%
equity,
and
then
you
see
ABN
that
two
portfolios
for
comparison
and
then,
if
you
look
at
the
makita
expected
return
I'll
focus
on
the
20
years.
C
Since
this
is
a
very
long-term
plan,
you
can
see
that
the
current
portfolio
has
a
7.3
percent
expected
return
per
year
and
they
say
had
7.5
McBee
has
7.8
and
Nixie
has
a
person,
so
we
wanted
to
present
you
with
some
different
options
here
that
show
different
levels
of
risk.
Return
trade-off
for
your
considerations
with
that.
I
will
mention
one
last
thing
before
turning
it
over
to
Chris.
C
Yes,
so
so
you
should
be
that's
a
classes
that's
attractive
to
to
attach
a
target
range
to,
and
different
different
plan
needs
a
target
range
in
different
ways.
You
all
have
a
rebalancing
policy
in
your
lesson,
policy
statement,
where
your
chief
investment
officer
and
his
team
are
able
to
move
within
those
ranges
and
sums
and
rebalance,
and
with
up
to
ten.
C
Way
or
the
other
some
some
funds
and
plans
that
we
work
with
will
not
rebalance
or
less
their
asset
classes
get
outside
of
those
ranges.
They
might
not
have
authority
to
do
that,
but
your
your
team
does
have
authority
to
do
that,
and
so
once
and
if
a
new
asset
allocation
is
adopted,
we
recommend
that
we
come
back
with
confirmation
of
target
ranges
so
that
the
board
can
consider
them.
C
Fully
rolled
these
are
the
targets,
and
so
you
know
you
do
have
a
overlay
through
wrestling
violence,
and
so
you
know
it's
generally,
you
know
many
other
plans
sometimes
will
drip
quite
a
bit
from
their
target
allocations,
but
because
you
all
have
a
overlaying
place
and
staff
is
diligent
about
rebalancing.
Typically,
you
stay
quite
close
to
your
treasurer.
E
B
B
B
B
C
A
great
question,
so
our
expectations
are
done
once
each
year
based
on
the
prior
year
end
and
they
do
lean
heavily
on
valuation
information
in
a
market
environment
like
we
have
right
now
with
a
ton
of
volatility.
We
would
expect
that
these
numbers
are
going
to
be
even
less
of
that
than
normal,
but
it
does
happen
every
year
you
recall
during
the
first
quarter
of
last
year
a
huge
run-up
in
equity
markets
and
sort
of
you
know.
Then
our
expectations
seems
may
be
a
bit
high,
because
we'd
already
captured
some
of
that
that
expected
return.
C
Then
we
were
talking
about
it.
So,
in
this
case,
I
would
argue
that
perhaps
these
expectations
for
return
are
a
bit
low,
given
that
equity
valuations
are
lower
than
they
were
when
we
use
12:31
whatta.
We
do
expect
that,
probably
sometime
maybe
year
this
year,
hopefully
once
volatility
has
all
down
a
bit.
We
may
reevaluate
use
expected
returns
and
if
we
do
then
we'll
bring
you
an
update
on
whatever
your
your
current
targets
are
expected
to
produce.
So
you
know,
in
light
of
that,
the
back
side.
C
You
know
it's
very
hard
when
you
look
at
just
one
point
in
time
and
we
model
something
like
80s
on
asset
classes.
So
it's
difficult
to
just
do
that
again
on
a
dime.
We
it's
a
great
question,
because
you
know
these
will
have
changed
so
that
the
thing
that
I
would
I
would
hope
that
the
support
would
focus
on.
Is
the
relative
differences
between
the
expectations
and
asset
allocations,
rather
than
the
exact
number,
because
even
if
we
were
to
restore
them.
B
C
Exactly
correct
another
thing,
I'll
point
out
about
our
expectations
is
that
they
assume
sort
of
a
median
index
return.
So
if
your
active
managers
outperform
their
relevant
benchmarks,
which
they
have
most
of
the
time
over
recent
years,
then
you
expect
this
lately
on
their
return.
They
also,
though,
don't
include
feeds,
so
you
know
in
many
question
cases
but
sort
of
actually
returned
and
she
usual
balance
out
over
a
long
period
of
time.
Thank
you.
You're.
Welcome
any
other
questions
before
we
move
on.
B
C
A
F
Page
9
of
mean-variance,
optimization,
which
analyzed
the
natural
trade-off
of
risk
in
return,
the
feds
current
portfolio,
which
we
need
to
be
the
most
defensive
portfolio
of
the
options
in
a
worst-case
scenario,
that
would
be
a
scenario
that
come
to
be
1
percent
of
worst
outcomes
so,
potentially
along
the
line
under
questioning,
had
to
prolong
downturn.
How're
the
Fed
current
portfolio
would
return
negative
17
percent
increased
risk
in
the
portfolio
slightly
worse
than
that.
F
Then
we
jump
down
the
probability
of
there
anything
negative
returns
where
all
the
mixes
generally
have
a
1/4
chance
of
experience
and
negative
returns
in
any
one
year
and
then
also
there's
a
probability
of
achieving
at
least
the
6.75%
returns.
Whereas
you
jump
into
the
more
risky
portfolio
option
your
probability
of
achieving
that
material
increases
Folio,
be
eight
percent
overlap
to
55
percent
leniency.
On
pages
10
11,
we
jump
into
the
scenario
analysis,
which
analyzed
previous
markets
that
we
have
seen
again
I'd
like
to
highlight
as
Laura
see.
In
our
analysis,
we
use
debt
returns.
F
Equity
portfolio
be
projected
15
percent,
whereas
the
alternative
mixes
would
be
up
in
the
nineteen.
Seventeen
to
eighteen
percent
area
also
wanted
to
touch
base
on
economic
regime
management
starts
on
page
14.
Here
we
highlight
global
macro
forces,
which
we
think
are
important,
and
the
young
portfolios
clearly
do
discrete
surprises.
Inflation
prices,
grow
surprises
and
suspend.
The
risk
will
note
that
growth
are
the
factors
that
pay
off
best
and
we've
run
each
of
the
portfolio
mixes
and
notice
the
portfolio
sensitivities
of
each
of
the
adoptions
along
those
lines.
E
G
D
H
G
So
joining
me
in
speaking
today
is
my
colleague,
Danny
Sullivan
is
whom
you
all
have
met
before
and
heard
from
before.
So
on
slide
two
just
again
to
summarize
our
main
observations
about
the
alternative
asset
mix
is
being
considered
today.
As
probably
mentioned,
the
board
has
elected
to
bucket
its
capital
allocation
in
three
main,
my
fifth,
and
so
the
mixes
that
are
being
presented
today
are
in
some
shape
or
form
presenting
a
shift
of
capital
from
zero
beta
that
0
beta
bucket
into
the
to
the
growth
bucket.
G
Importantly,
we
will
talk
somewhat
about
the
risk
operating
zone
and
how
the
alternative
asset
mixes
all
fall
within
the
current
risk
operating
zones
that
have
been
defined.
Many
about
the
policy
statement
and
you'll
see
that,
with
one
exception,
all
of
the
alternative
mixes
do
fall
within
the
limit
for
the
CIA
or
its
operating
zones,
and
then
is
going
to
provide
just
a
little
bit
more
context
about
the
process
that
we
engaged
in
setting
those
which
operating
zones
as
kind
of
a
response
to
questions
and
comments.
G
G
C
G
You
get
to
a
risk
level
where
you're
really
not
getting
paid
adequately
for
the
return
minute
you're
getting
another
observation
is
we
mentioned.
There's
all
of
these
mixes
represent
a
greater
shift.
Stick
growth
assets
which
that
increasing
growth
you're
predominantly
increasing
your
equity
risk
exposure
and
we'll
discuss
how
the
portfolio
need
perform
as
a
result
of
that
given
changes
in
returns
in
the
equity
market
and
you'll.
G
Lastly,
another
key
source
of
risk
in
the
portfolio
is
interest
rate
with,
and
we
measured
that
the
generations
of
exposure
and
you'll
see
that
the
duration
is
not
significant
in
the
current
portfolio.
The
current
strategic
asset
allocation
policy
and
it
does
not
become
a
greater
risk
in
means
higher
risk
portfolios,
entire
growth
portfolios
and
the
reason
why
we,
like
those
interest
rate
within
your
liabilities,
that
you're
trying
to
deceive
for
these
asses
do
have
a
strong
compounded
of
those
interests
and
inflation.
They
tend
to
have
a
very
high
duration.
H
H
Following
up
to
that
question
of
how
much
risk
the
board
was
taking
and
question
was
posed,
how
much
risk
should
you
be
taking,
and
this
is
easy
questions
enhancer,
but
we
work
with
the
board
to
create
a
framework
for
this
question,
and
so
this
simple
diagram
here
that
we're
showing
in
this
slide
essentially
distilled
his
framework
into
its
component
parts.
So
first
we
start
with
volatility
and
identify
what
the
effective
relationship
is
between
different
levels
of
volatility
of
different
products.
H
Then
we
take
that
information
and
incorporate
with
the
board's
risk
tolerance.
Ethics
right
to
make
a
determination
about
the
appropriate
risk
ranges
for
that.
This
range
of
administrative
plan
this,
while
this
incorporates
a
lot
of
quantitative
data.
This
is
a
very
qualitative
exercise
and
we'll
go
through
a
little
bit
about
that
like
in
the
subsequent
slides
and
then
the
third
component
is
we
stretch
text
what
those
limits
and
ranges
on
that.
We
don't
write
that
through
understanding
the
potential
impact
on
the
plans.
Financial
conditions
affect
right,
and
so
this.
H
That
goes
over
the
frame
if
we
jump
into
the
next
slide
lying
for
the
start,
getting
into
the
leaders
of
that
discussion
that
we've
had
several
years
ago
that
discussion
so
there's
a
lot
going
on
in
the
slides,
we'll
just
take
a
minute
to
describe
what
they're
selling
them.
Looking
at
the
table
here.
The
first
column
that
we
have
is
total
portfolio
volatility
or
full
arrest.
H
H
So
the
first
method
would
be
bar
or
Value
at
Risk
that
calculates
the
maximum
expected
loss
over
a
one-year
period
if,
given
a
certain
degree
of
confidence,
R
or
conditional
Value
at
Risk.
This
is
also
referred
to
an
expected
shortfall
and
this
measures
the
expected
loss
and
far
exceeds
the
average
of
the
tail
observations
and
then
the
last
on
the
very
far
right.
We
have
the
average
of
the
three
worst
distorting
scenarios.
H
So
here
we
simulate
the
portfolio
of
a
strategic
asset
allocation
through
historic
scenarios,
to
determine
the
three
worst
periods
and
take
the
average
of
those
scenarios.
So
this
metric
is
really
useful
because
we
identified
the
portfolio
in
terms
of
not
always
behaves
in
the
grave
and
statistical
models
to
predict
the
statistical
model
representing
the
values
for
bars
in
our
next.
We
apply
confidence
intervals
of
95
or
99
percent
to
each
of
the
different
statistical.
H
So
a
95%,
confident
and
we've
been
involved
in
the
case
that
we
would
expect
to
be
right.
So
you
would
expect
this
this
measure
or
this
value
to
be
right.
95
out
of
a
hundred
years
or,
conversely,
be
wrong
five
out
of
a
hundred
or
once
out
of
every
twenty
years,
a
99%
confidence
interval
suggests
we
expect
to
be
right.
99,
our
operatives
were,
conversely,
wrong,
one
out
of
every
100,
so
the
higher
the
confidence
interval
of
the
higher
the
expected
drawdown
and
the
more
conservative
losing
the
risk
tolerance
be
right.
H
So
we
overlay
the
word
tolerance
on
this
table
to
provide
insight
into
the
considerations.
So
look
at
this
table.
The
very
bottom
left
of
this
table
identifies
the
most
aggressive
risk
tolerance
you
may
take
as
a
board,
whereas
the
top
right
identifies
the
most
conservative
in
terms
of
how
you're
defining
volatility
and
its
relationship
with
draw
downs.
H
So
in
the
work
that
we
did
with
the
board,
we
were
able
to
hone
in
on
a
certain
level
here
that
we
thought
was
most
appropriate
for
setting
the
limits
and
then
setting
operating
ranges,
and
so
the
red
bar
that
you
see
going
across
this
table
is
where
we
defined
the
risk
or
volatility
and
then
the
measurement
that
we
need
to
define
with
that
drug
amount
is
going
to
be
worse
than
95%
C
bar.
So
we
said
it
at
12%,
both
leading
member.
H
We
expect
one
the
20-year
event
to
be
a
25%
drawdown
and
that's
what
we
want
to
try
and
avoid
this,
and
then
the
next
slide
will
jump
there
in
a
second.
But
the
next
I'll
tell
you
what
the
impact
on
the
overall
plan
of
that
is
so
anyways.
The
three
zones
here
which
we
will
have
discussed
in
a
couple
of
slides,
relate
to
who
has
authority
or
who
should
be
notified,
changes.
H
Okay,
so
moving
on
to
the
next
slide
line,
five
here
and
again,
there's
a
lot
going
on
this
slide
and
I
apologize
for
the
density
of
these
two
slides
and
lack
of
slides
here,
but
we're
trying
to
distill
a
lot
of
these
conversations
into
the
shortest
amount
slides
possible.
Let
me
run
through
what
we're
showing
here
so
based
on
discussions
with
both
varus
and
Chiron.
The
board
selected
three
metrics.
H
So
what
we
have
here
in
these
pink
am
roses
is
Chiron
measure
the
impact
of
several
difference
and
scenarios
for
the
plan.
We
have
the
baseline
or
the
current
assumptions,
assuming
that
the
current
assumptions
are
met
over
the
next
ten
years
and
then
there's
drawdowns
apply
than
twenty
twenty-five,
thirty
thirty-five
and
forty
percent,
and
then
we
can
see
what
the
impact
is
on
these
different
actuarial
metrics.
H
So
in
these
drawdown
of
them
to
assume
these
happen
in
fiscal
year,
twenty
and
then
the
plan
achieves
it
assumes
rate
of
return
in
the
subsequent
years.
Each
of
these
tables
are
working
out
those
different
scenarios
over
a
10-year
period.
So
we
just
quickly
talk
about
the
two
tables
that
we
have
here.
The
first
table
looks
at
a
single
observation.
H
H
And
so
this
was
the
framework
that
was
used
to
define
the
risk,
tolerance
so
really
discuss
this.
The
25%
scenario
is
really
where
there
there
was
traction
and
there
was
the
most
consensus
in
terms
of
what
the
planchette
viavoice.
So
as
you
toggle
through
this
slide
in
the
previous
slide,
you
can
really
hone
in
on
exactly
what
the
impact
is
and
understand
that
relationship
between
volatility,
drawdowns
risk,
tolerance
and
impact
on
financial
conditions.
B
H
So,
moving
on
to
slide
6
here,
what
we
can
do
now
is
we
can
look
at
these
different
mixes
through
the
lens
of
those
risk
operating
zones
that
we
have
just
discussed
writing
and
so
we're
not
going
to
review
all
of
the
risk
operating
zones
that
are
in
the
policy
today.
We're
going
to
focus
here
mainly
on
the
salat
ility,
a
very
useful
framework.
H
G
For
those
of
you
that
may
not
be
familiar
the
Sharpe
ratio,
the
actual
calculation
is
the
expected
return
minus
the
task,
forty
Bell
return
and
then
the
result
of
that
divided
by
the
risk
to
the
expected
risk
of
the
portfolio.
So
in
this
case
we're
using
the
we
want
to
be
consistent
that
we're
using
the
kina
expected
return
as
the
numerator
and
then
as
a
Dominator,
the
risk
that
that
Danny
just
covered
on
the
prior
slide.
G
So
all
of
these-
and
you
can
see
that
the
current
policy,
the
current
strategic
asset
allocation-
actually
has
the
highest
Sharpe
ratio
relative
to
be
other
alternatives
and,
as
we
increase
our
risk,
that
Sharpe
ratio
just
modify
and
I
have
to
emphasize
the
words
modestly,
because
if
this
were
presented
in
single
digits,
they'd
all
be
essentially
the
same.
They
all
round
2.5.
So
while
there
is
modest
decline,
you
get
higher
in
your
risk
exposure.
G
The
fact
is
that
a
point
5
shark
ratio
is
considered
to
be
a
very
healthy
Sharpe
ratio
for
an
institutional
portfolio
and
whether
it's
point
four
seven
or
twenty
forty
five,
you
should
be.
You
should
consider
yourself
being
indifferent
to
that,
because
it
is
essentially
not
statistically
significant,
that
I'd
say
the
only
real
distinction
areas
of
sixty
four
units.
That
is
point
three.
Nine
shock
ratio,
although
that
in
and
of
itself,
is
still
a
relatively
reasonable
Sharpe
ratio.
G
G
G
You
set
the
bar
in
terms
of
where
you
want
to
have
your
exposures
to
equities
the
next
five
five
nine
is
another
way
of
looking
at
asset
allocation
and
that
we
would
call
this
risk
allocation.
So,
while
your
current
portfolios
is
roughly
6535
roads
and
non
growth
assets,
the
fact
of
the
matter
is
the
equity
component
in
terms
of
the
risk
driver
in
76%,
and
you
can
see
how
that
contribution
to
rich
from
that
equity
exposure
increases
across
these
various
portfolios.
I
think
what's
interesting
is
the
ninth
of
60/40
portfolio.
G
You
meet
me
Wow,
that
is
the
most
conservative
portfolio
from
a
capital
allocation
perspective,
but,
yes,
it
has
the
highest
contribution
to
Richmond
equity.
Oh!
Is
that
because
it
is
literally
sixty-forty,
isn't
very
fun
diversified,
so
I
think
what
this
graph
illustrates
was
an
important
of
diversification
and
how
that
really
does
matter
in
terms
of
reducing
the
contribution.
There
is
some
that
very
strong
single
factor.
The.
H
G
Risk
factors
that
your
assets
are
exposed
to
are
illustrated
in
a
legend,
so,
in
addition,
faculty
risk
their
interest
rate
list
now.
Looking
at
this
graph,
you
will
note
that
that
actually,
that
contribution
to
risk
is
actually
below
zero,
and
you
may
wonder
why
that
is
and
the
reason
why
that's
below
zero
is
again
we're
looking
at
the
risk
allocation
and
the
contribution
to
risk
from
your
interest
sensitive
assets.
G
H
Sure
yeah
I
think
so
I'll
just
briefly
touch
on
this
because
we
have
everything
was
already
highlighted.
It
is
not
a
major
source
of
bridge
throughout
of
humans
and
mixes,
but
we
can
help
I
think
it's
useful
to
think
about
what
the
impact
on
these
different
mixes
are
in
terms
of
the
sensitivity
of
these
portfolios
to
interest
rate
movements.
H
So
in
the
case
of
federated
federated
kinds,
has
a
duration
of
1.97
called
two
years,
not
something
that
if
interest
rates
were
to
fall
one
percent
tomorrow,
we
would
expect
this
portfolio
to
be
up
two
percent
or
one
fifty
nine
seventy
percent,
and
then,
conversely,
if
they
rise,
one
percent
would
expect
the
portfolio
to
be
down
two
percent.
So
this
logic
the
same
logic
to
be
applying
across
all
dimensions.
H
G
Yes,
sorry
I
forgot
to
take
company
buttons,
so
fine
11
presents
of
scenario
analysis
so
in
the
disengagement,
blue.
Looking
at
just
the
alternatives,
we
looked
at
sort
of
downside
economic
scenarios
in
terms
of
how
these
portfolios
may
perform
in
the
strong
drawdown
scenarios,
and
you
can
see
the
way
to
read
this
is
the
legend
from
left
to
right
is
how
the
bars
are
structured
so
top
to
bottom.
G
So
the
each
top
bar
is
the
feds
current
strategic
asset
allocation
and
the
bottom
part
is
the
60/40
portfolio,
and
for
those
of
you
that
prefer
tables,
we
actually
have
a
table
in
the
appendix,
with
the
values
associated
at
those
barns.
So
the
the
results
of
these
scenarios
are
fairly
similar
among
the
as
the
efforts
allocation
alternatives.
The
two
distinguishing
scenarios
are
the
2007-2009
subprime
and
credit
crisis
and
the
2002-2003
checking
crashing
session
there.
G
You
can
see
that
those
highest
further
portfolios,
even
80/20,
which
is
the
black
and
white
stripes,
are
compared
to
the
current
portfolio,
does
drop
down
quite
a
bit
more.
So
if
you
think
back
to
that
higher
equity
beta
and
higher
contribution
to
risk.
This
is
what
that
translates
to
in
terms
of
the
relative
saw
downs,
so
not
that
an
asset
allocation
decisions
should
be
made
based
upon
the
level
of
drawdown,
but
certainly
that
decision
should
be
made
cognizant
of
what
fast
draw
down
might
look
like
relative
to
other
alternatives
the
same.
G
H
Going
through
a
period
right
now,
there's
an
end
up
showing
up
on
our
scenario,
analysis
in
the
future,
we're
still
in
the
midst
of
this
shock
right.
So
the
final
results
of
this
scenario
will
not
be
determined
for
some
time,
but
what
we
can
do
is
take
a
look
at
what
the
expected
behavior
has
been
through
some
of
these
peak
to
trough
or
some
of
these
specific
periods
that
we've
just
experienced
right.
So
what
we
did
is
we
created
two
shocks
in
our
system
and
then
we
looked
at
this
trim.
H
H
B
A
E
A
A
Well,
I
have
one
for
your
presentation.
Please
forgive
my
acquaintance,
respect
on
this
way.
You
talked
about
the
different
characteristics
of
the
different
scenarios
and
then
Danny
active.
You
spend
a
bit
of
time
on
the
potential
consequences
of
the
potential
consequences
of
the
different
scenario.
Those
numbers.
H
Say
is
the
20
or
25
percent
shock
that
we're
talking
about
in
markets?
Is
equity
markets,
not
the
overall
portfolio,
so
the
scenarios
were
looking
at
here
are
for
the
overall
portfolio
and
then
the
second
to
the
second
part
of
your
question.
These
are
all
of
the
most
recent
actuarial
valuation.
Conservative
not
be
incorporating
the
kind
impact
plus
the
additional
drawdown.
This
would
just
be
from
the
being
size
of
the
most
recent
actuarial
valuation.
E
You
mr.
chairman
I
did
want
to
address
a
couple
of
questions
that
were
raised.
I
also
have
a
few
remarks
and
hopefully
I
can
set
this
up
for
immediate
discussion
among
trustees.
So
I
think
you
had
raised
a
very
important
question
about
you
know
it's
because
everyone
can
turn
to
each
slice.
Six
of
the
makita
presentation-
and
you
see
the
first
column
called
said
columns
and
mr.
chairman,
you
have
the
question
about
you
know:
are
we
here
at
this
this
our
target
and
where
are
we
today
and
I?
E
E
E
We
will
not
be
making
tactical
asset
allocation
for
two
reasons.
One
is
we
think
we
didn't
think
we
necessarily
had
the
expertise
to
time
the
marking,
and
secondly,
if
you,
even
if
you
are
that
size
very
hard
to
measure
the
success
of
practical
asset
allocation,
so
we
made
a
policy
decision
on
the
staff
side
that
has
the
board
accepted
this,
that
we
will
not
be
touching
in
any
tactical
asset
allocation,
and
so
the
strategic
asset
allocation
that
you
see
is
the
cheating
is
an
actual
allocation
today,
with
one
caveat
anything
comfortable.
E
Was
done
prior
to
this
bell,
sound
and
so
I
would
say
one
rule
of
thumb
that
we
can
use
today,
and
this
is
not
scientific
or
accurate
by
any
means,
but
it
directionally.
It
will
be
correct
if
you
look
at
the
20-year
expected
return.
Makita
600
with
7.6
and
mixed
a
7.5
mix
be
seven
point,
nine
and
so
on.
Given
that
we've
had
a
25%
draw
now,
and
you
spread
that
over
20
years,
compounded
about
one
percent
of
one
point-
one
percent
more
today,
then
it
was
on
December
31st.
E
E
E
E
But
it
is
there
so
that
we
don't
need
to
frequently
rebalance
the
portfolio
and
in
under
three
transactions
possible,
but
we
felt
that
we,
where
is
an
environment,
but
if
we
start
rebalancing
the
portfolio
and
we
will
take
advantage
of
lower
income
crisis.
So
even
though
it
is
at
35
percent,
we
are
actually
technically
the
ID
that
you
will
be
very
comfortable
if
you
want
to
call
it
38.5%
and
more
the
facts
and
evidence.
We
practice
meetings,
we've
been
trying
to
increase
our
equity
allocation
within
that
10%
time
now.
E
We
are
not
that
exactly
at
this
important
time.
For
a
couple
of
reasons,
one
is
that
even
as
we
started
buying
it
leave
the
market
started
falling,
so
we
are
playing
catch-up
to
that
upper
limit
of
the
10%
time,
and
the
second
reason
is,
we
won't
know
exactly
whether
we
are
at
set
limits,
because,
while
public
equity
prices
are
very
observable
in
the
market
and
we
can
see
on
a
daily
basis
what
our
values
are,
private
assets
don't
work
the
same
way,
so
we
have
for
sale
prices
on
the
private
side.
If.
E
Our
private
asset
wings
slightly
exaggerated
because
it
has
not
been
marked
down
as
a
result
that
our
public
Adrian
probably
slightly
higher
than
what
they
indicate.
So
what
I
want
to
point
that
out,
because
if
we
move
from
veteran
35
makes
a
70/30,
you
would
see
that
on
the
public
equity
side,
we
are
moving
from
35
percent
to
47
percent.
Now
that
might
look
like
a
big
move,
but
I
want
to
point
out.
At
the
same
time,
some
of
these
people
line
by
line
is
actually
coming
from
the
private
market.
D
E
E
Current
mixed
age,
we
are
only
talking
about
a
7%
increase
in
growth
at
so
70
minus
61
is
9,
so
you
may
be
wondering
where
the
other
2%
and
the
other
2%
is
my
gearbox.
As
far
as
equity
export
your
horse.
Moving
from
current
only
7%
increase
the
masses
now
object.
7%
we've
already
made
about
the
2
percent
move,
because
the
ideal
method,
by
extra
support
all
we're
talking
about
it's
a
part
of
Cyprus
and
move
in
equity
when
we
go
from
fed
current,
will
mix
tape.
E
E
E
If
anyone
has
questions
on
that
so,
but
the
point
I'm
trying
to
make
is
that
moving
from
fed
current,
so
mixtape
is
not
such
a
big
jump.
We're
almost
there
already.
The
question,
then,
is:
if
they're
almost
as
big,
they
should
be.
Think
about
me.
It's
at
a
big
jump
going
from
35
to
75.
25
is
not
a
big
jump.
E
E
We
are
almost
extinct
so
going
from
the
center
to
the
stage
is
a
very,
very
small
and
trivial
change,
I'm
going
to
mix
B.
If
you
think
of
going
from
set
science
mix
be
and
the
overnight
position.
That
might
seem
like
a
big
decision.
Instead,
you
may
want
to
think
about.
This
is
the
following,
which,
if
we
are
at
reference,
we
think
that
we
have
an
opportunity
to
reduce
the
portfolio
and
we
think
the
portfolio
greater
returns
for
a
beneficiary,
then
going
from
red
card
to
mix
fee
can
be
done
in
statement.
E
E
Later
I'm
happy
to
tell
you
what
your
sister
for
the
police
and
fire
port
did
if
that
will
fit,
that
can
many
ways
form
this
discussion.
Those
are
my
comments.
Mr.
chairman
I
do
I
did
speak
to
IP
shared
hostage
Andhra
yesterday
at
great
length,
and
we
also
exchanged
messages
this
morning.
He
conveyed
his
preference
to
me
and
after
the
discussion,
if
we
have
a
have
a
boat
or
if
you
want
me
to
know,
if
you
want
to
know
what
his
preferences
that
I
give
you
share
with
the
group
with
that
disorder.
A
E
Cannot
remove
anything,
for
example,
you'll
see
in
your
recommendation,
producing
the
person
allocated
to
absolute
return
or
there
may
be
miss
funds
and
they
usually
have
Redemption
terms.
They
don't
allow
for
dating
ability,
and
it
takes
time.
The
public
addresses
no
strategies,
but
the
objective
is
the
police
and
fire
board
wants
to
immediately
increase
equity,
exported
public
equity
exposure,
and
we
did
that
pretty
much
within
a
day
or
two
before
making
that
decision.
E
B
A
B
E
A
So
before
we
Lord
only
other
questions
before
we
move
into
comments
and
discussion,
at
which
point
I'll
use
a
roll
call
and
I
like
to
give
every
board
member
an
opportunity
to
speak
or
not
and
I
thought
I
would
start
with
the
board
members
who
are
who
have
been
part
of
the
IT
discussions
first,
but
people
we
do
that
under
any
other
clarifications
that
we
need
on
these.
Are
there
mr.
Kalani's
comments
or
those
makino
or
Barron's
a.
E
Today
and
the
recommendation
was
made
to
the
police
and
fire
board
to
move
to
1713
and
they
accepted
that
and
the
police
inspired
investment
company
came
back
further
and
in
fact
we
had
not.
When
we
had
the
special
meeting
with
the
blazing
fire
boards,
we
did
not
offer
them
options
of
7525
and
80/20,
and
so
that
the
board
specifically
have
staff
and
consultants
to
come
back
with
additional
options
of
higher
risk,
and
so
this
was
at
their
meeting
on
March
18th
on
March
24th.
E
We
had
the
police
and
fire
investment
committee
meeting
and
we
presented
the
hybrid
options
to
them
when
he's
at
75,
25
and
the
80/20,
and
at
that
meeting
the
English
the
police.
My
investment
committee
recommended
with
a
full
board,
as
we
made
a
strategic
shift
to
73,
but
not
a
tactical
ship
as
long
as
it
stays
under
2800.
As
long
as.
D
E
Paid
1,300,
they
felt
as
a
group
there's
enough
value
in
equity
markets
to
move
up
to
75
25
on
a
permanent
strategic
basis.
So
it
doesn't
matter
that
the
entity
will
come
down
after
that
bit
waiting
to
cut
it.
They
do
not
go
back
to
mix
pain,
they
want
to
read
it
as
a
plan
to
a
higher
risk
and
keep
it
going
forward.
I
hope
that
sense.
B
E
B
A
E
A
E
I
Oh
hi,
this
is
Tom
Steenson,
here's
what
I'm
coming
from,
maybe
a
little
bit
more
conservative
than
the
other
two
trustees.
Yes,
we
are
seem
to
see
a
great
opportunity
to
jump
in
and
to
increase
the
equity
beta
in
our
portfolio
at
month.
I
totally
agree
bear
in
mind.
The
portfolio
is
a
very
mature
performer
on
the
infant
plan.
Sorry,
the
plan
is
a
very
mature
plan,
although
our
cash
outflow
is
a
lot
greater
than
the
cash
inflow.
I
If
we
move
it
at
high
risk,
your
plan
I
wonder
I'm,
just
not
so
sure
how
how
well
we
will
sustain
the
long
sustained
them
when,
when
there's
a
fake
doctor,
all
of
us
draw
down
in
a
in
a
portfolio
when
we
do
have
to
make
a
large
amount
of
a
payment
through
the
retirees,
so
I
do,
support
next
day.
I
think
that,
yes,
we
are
almost
there
may
say
instead
give
us
a
target
of
35%
for
equity.
It
gives
us
46
percent
of
equity
has
to
be
changes.
I
I'm
going
to
a
development
market,
equity
and
emerging
market
equity,
I
am
and
then
it's
also
kind
of
a
put
our
plan
similar
with
our
peer
medium,
so
I
would
say.
Mix
today
makes
me
feel
a
lot
more
calm,
more
comfortable
than
jumping
into
makes
to
be,
even
though
the
SP
hundred
S&P
500
has
calmed
down.
So
I
have
Tom
calm
down,
don't
want
to
get
quite
as
quite
a
bit
about
25
percent.
A
D
We
do
that,
but
you
know
I
know
Prabhu
and
his
staff
had
the
hands
full,
so
I
want
to
make
sure
that
we
keep
in
mind
that
that's
part
of
the
job
that
we
want
to
do
as
soon
as
possible,
but
I
want
to
make
sure
that
they
also
have
the
time
to
implement
whatever
changes
are
needed
and
keep
track
of
what
the
market
is
offering.
So
it
would
be
a
joint
effort,
but
I'm
Michael
will
be
that
sometimes
we
were
able
to
roll
that
out.
D
A
Okay
yeah.
Thank
you
very
much.
Adam
you
mind
my
thinking,
you
know
this
is
the
plan
is
so
large
a
a
couple
billion
dollar
the
market,
then
so
newsworthy
the
nature
of
vacuums.
To
the
extent
we
don't
push,
information
out
and
people
make
up
their
thoughts
within
themselves.
I
think
it's
better
for
us
to
get
the
get
the
good
story
out
there.
A
They
make
up
a
good
story,
but
rather
our
diligence.
The
fact
that
we've
had
the
two
committee
meetings
already
we
have
the
more
meeting
we're
taking
action.
You
know
whether
or
not
everybody
agrees
with
every
action.
Every
detail,
that's
another
matter,
but
rather
that
we've
been
engaged
and
we're
executing
the
processes
that
are
available
to
us
and
that
that
would
be
my.
My
major
interest
then
probably
consume.
Please
talk
about
what's
the
next
step
for
you
in
terms
of
pushing
this
information
out
action,
yeah.
E
Thank
You,
mr.
chairman,
so
as
pointed
out,
you
know
we
are
trying
to
use
many
different
forums
to
to
polish
up
the
message
and,
as
you
know,
you
know
I've
written
some
pieces
for
the
benefit
of
trustees
and
also
wrote
a
piece
for
the
benefit
of
stakeholders
and
we've
modified.
That
feeds
to
include
in
the
newsletter
and
hopefully
that
will
go
on
the
website
real
soon
and
in
in.
E
Piece
at
the
time,
I
wrote
that
I
said
that
we
are
in
active
discussions
with
our
trustees
about
trying
to
position
the
client
to
take
advantage
of
the
drop
in
from
valuations
and
so
I.
Think
I
can
just
modify
that
it's
a
minor
modification
to
say
to
actually
mention
what
the
board
has
decided,
and
so
we
can
offer
some
concrete
details
now,
and
so
that
would
be
an
easy
enough
amendment
to
what
I've
written
and
against
the
the
site
directly
next
week
that
Roberta
mention
works
well
for
us,
and
we
can
do
that
great.