►
Description
City of San José, California
Police & Fire Department Retirement Plan Board Meeting.
View Agenda for this meeting at https://sjrs.legistar.com/View.ashx?M=A&ID=771071&GUID=3E45E45C-9791-436E-8529-A11CB455B62E
A
Yes,
thank
you
for
thank
you
for
a
recording
this.
Let's
go
ahead
and
get
this
meeting
started
the
police
and
fire
department
and
health
care.
Trust
me
on
April,
2nd
2020.
Let's
go
ahead
and
could
do
a
roll
call
myself
and
regardin
ears
here
trustee
lawns.
Are
you
president?
Yes
trustee
Lee
present?
Yes,.
C
B
A
A
Cio,
probably
Lani
here
good
morning
good
morning,
and
we
also
have
staff
several
staff
members
on
the
phone
on
the
call.
Also
thank
you
for
being
here.
So
what
we're
going
to
do
right
now
we're
going
to
go
ahead
and
jump
to
closed
session,
all
the
trustees
and
staff
member
who
are
we
participating
in
this
closed
session?
You
should
have
received
an
email
run
from
Ron
yesterday,
just
go
ahead
and
click
on
that
link
and
I'll.
Put
you
right
into
the
meeting.
A
A
A
A
The
meetings
of
the
boards
and
committees
may
take
place
with
with
any
and
all
board
members
appearing
telephonically
a
quorum
does
not
have
to
be
located
within
the
city
limits.
The
boards
of
committees
may
design
or
designate
and
assessable
offices
of
office
retirement
services
as
a
single
location
from
which
members
of
the
public
may
participate
in
the
meeting.
The
ORS
premises
are
not
city
officials,
offices,
subject
to
the
pending
city,
shutdown,
one
or
more
or
s.
A
A
Please
just
take
notes
of
any
questions
or
comments
that
you
want
to
make
until
the
end
of
the
presentation
and
when
it's
time
for
Q&A
I'll
just
go
down
the
roster
just
like
we
do
for
votes
and
see.
If
anybody
wants
to
make
comments
or
has
want
any
questions
to
have,
we
are
gonna.
Do
our
best
to
you
know,
run
this
smoothly.
A
Last
call
we
had
was
a
conference
call.
We
are
trying
to
do
now.
The
new
technologies
new
for
me
so
bear
with
bear
with
us.
If
there's
any
some
issues
that
might
pop
up,
but
so
far
it's
been
a
great
experience
and
I
hope
everybody
has
a
good
one
too.
If
there's
any
issues
going
forward,
don't
hesitate
to
reach
out
and
ask
when
the
staff
members
you
know
for
help
if
needed
in
regards
to
the
zoom,
if
you're
not
familiar
with
it
as
you're
facing
the
screen.
A
There's
just
two
buttons
I
want
to
point
out
to
you
bottom
left
as
you're
facing
your
screen.
There's
the
mute
button,
we're
asking
everybody
to
be
on
mute
to
to
avoid
any
background
noise
unless
you're
about
to
speak
and
then
also
the
video
you're
not
obligated
to
be
on
video.
So
if
you
want
to
be
on
video,
you
could
certainly
do
so
or
if
you
choose
not
to
there's
a
stop
video
button
right
next
to
the
mute
button.
A
A
A
C
H
A
G
But
everyone
knows
that
the
board
had
a
special
meeting
on
March
18th
and
approved
us
going
from
about
a
65
35
to
a
70/30
mix
and
I
just
want
to
give
an
update
in
terms
of
where
we
are
in
moving
to
the
new
mix.
So
we
were
able
to
actually
get
exposure
to
public
equity
right
away,
using
a
combination
of
proxies
and
using
the
Russell
overlay
and
I
also
wanted
to
give
the
board
prior
to
that
prior
to
the
March
18th
board
meeting.
G
We
also
had
some
specialized
SI
meetings
where
we
requested
that
we
be
able
to
use
our
10%
band
within
each
asset
class,
especially
for
equities,
so
I
just
wanted
to
let
the
board
know
that
we've
been
buying
equities
and
on
March
12,
16
and
19.
The
majority
of
it
was
on
the
19th.
Following
the
special
board
meeting
on
the
18th
and
in
general
we
have
been
able
to
increase
our
equity
exposure
with
the
S&P
just
under
2500,
so
March
12th
about
24
80,
March
16th
about
2500.
G
The
majority
of
it
was
March
19
about
2400,
so
I
just
thought.
The
board
will
be
interested
in
that
now.
We
have
moved
to
the
70/30
mix
on
the
on
the
public
equity
side
and
there
are
some
exceptions
in
terms
of
moving
to
the
recommended
mix.
For
example,
as
you
know,
absolute
return
is
an
illiquid
asset
class.
So
it's
going
to
take
us
some
time
to
trim
that
exposure.
A
lot
of
our
managers
there
have
gates
so
to
be
quarters
before
we
actually
get
to
the
the
new
revised
lower
allocation
of
3%.
G
Similarly,
for
fixed
income,
we
continue
to
hold
the
allocation
and
short-term
investment
grade
bonds
as
we
look
for
opportunities
in
high
yield
and
duration.
So
we
will
actually
I
would
like
to
bring
a
revised
IPS
for
the
board's
consideration
next
month,
which
will
basically
state
that
we
will
be
violating
the
10%
band,
the
discretion
that
staff
has,
especially
when
we
move
our
strategic
asset
allocation
quite
drastically,
because
it
will
take
us
some
time,
especially
with
illiquid
asset
classes.
G
A
G
You,
mr.
chairman,
you
just
told
some
of
my
Thunder
there,
but
again
just
to
reiterate
what
the
chairman
said
at
its
special
board
meeting
on
March
18th,
and
we
wanted
to
see
some
higher
risk
options
besides
70/30,
and
so
our
consultants
and
staff
put
together
four
other
options
to
475
25
and
two
options
for
80/20
and
the
IC
on
March
24th
narrowed
it
to
one
option
for
75
25
and
one
for
80/20,
which
is
now
brought
before
the
board
and
with
that
I
will
actually
turn
this
over
to
Laura,
followed
by
Eileen.
G
E
B
I
I
So
I'm
not
gonna,
go
through
every
slide
since,
as
your
chair
and
probably
mentioned,
we've
been
through
sort
of
the
groundwork
for
asset
allocation
several
times,
and
you
can
see
from
the
introduction
here
since
the
meeting
on
March
24th.
We
aim
to
incorporate
feedback,
we
incorporated
feedback
from
the
board
and
the
IC.
You
know,
as
you
know,
Marcus
have
continued
to
be
volatile
during
this
time.
I
I
This
is
the
slide
that
begins
the
changes,
and
you
can
see
here
that
we've
added
a
line
at
the
bottom
one
more
slide,
please
Linda
and
we've
added
a
line
at
the
bottom
on
slide.
Six
that
shows
you
the
equity
bond
mix
of
each
asset
class,
RH
asset
allocation.
So
here
we
have
the
prior
police
and
fire
allocation
on
the
far
left
and
we've
called
it
prior
because
we
know
that
your
staff
is
already
moved
to
what
was
mix.
Another
mix
that
we
presented
that
you've
already
adopted.
I
So
we've
got
the
PMF
prior,
which
was
your
old
asset
allocation,
the
one
that
was
recently
moved
to
just
a
couple
weeks
ago,
which
is
current,
and
we
show
mrs.
B
and
C,
which
would
increase
the
equity
allocation
in
each
of
them.
We
then
show
the
pure
median
allocation
and
then
a
sixty
percent
global
equity.
I
Forty
percent
bond
allocation
on
the
far
right,
and
so
you
know,
as
we
talked
about
the
last
time,
you
can't
just
necessarily
add
together
growth
as
all
equity
and
low
beta
other
as
all
fixed
income,
because
we
do
have
some
asset
classes
that
are
a
bit
more
subjective
in
terms
of
where
they
fall.
For
example,
emerging
markets,
bonds
and
high-yield
bonds
are
under
the
growth
asset.
I
I'll
look
at
class,
however,
we
classify
them
for
the
equity
bond
mix
as
bombs
and
then
core
real
estate
is
listed
under
other,
but
we
classify
that
for
the
equity
bond
mix
under
under
equity.
So
that's
how
we
get
those
equity
bond
mixed
numbers
at
the
bottom.
In
terms
of
the
20-year
expected
returns,
you
can
see
that
they
would
be
higher
under
the
increasing
equity
scenarios.
I
I
B
Then
continuing
theories
on
the
standard,
Makita
slides
on
page
10
and
11.
We
do
touch
base
on
scenario,
analysis
which
highlight
the
same
point.
Whereas
a
less
risky
plan
I
will
provide
some
more
downside
protection,
whereas
a
riskier
plan
such
as
mixes
BC,
will
provide
a
little
bit
more
upside
participation.
B
Then,
as
we
continue
through,
we
also
include
our
stress
testing,
slides
on
page
12
and
13,
highlighting
the
results
of
several
isolated
market
movements
using
the
current
mix,
a
as
well
as
B
and
C,
and
then
followed
by
that
we
use
our
portfolio
sensitivity,
analysis
to
highlight
economic
regime
management,
focusing
on
global
macro
factors
for
each
of
the
portfolio
options
and
then
followed
by
kind
of
the
sausage-making
behind
all
the
numbers
and
the
appendix
I
know.
The
board
has
seen
many
of
these
pages
and
look
for
these.
I
G
A
G
H
H
F
H
Think
I
just
got
lucky
so,
starting
on
on
slide,
two
I
just
wanted
to
frame
some
of
the
information
that
we're
going
to
be
going
through
in
in
in
just
a
couple
of
brief
observations.
So,
as
was
mentioned,
there's
been
a
fair
amount
of
discussion
and
analysis
of
varying
asset
mix.
Alternatives
to
this
point
in
Prior
meetings.
H
So
the
mixes
that
are
being
considered
today
are,
as
Laura
just
mentioned,
the
additional
growth
alternatives
and
by
allocating
more
to
growth
assets,
there
is
a
shift
away
from
low
beta
assets
and
all
of
the
alternatives
that
are
being
considered
in
addition
to
just
return
and
risk,
as
defined
by
standard
deviation.
There
are
other
metrics
that
you
as
a
board
focus
on,
or
should
focus
on
in
determining
the
appropriate
asset
allocation
to
move
forward
with.
H
So
as
part
of
your
governance
and
your
investment
policy
statement,
you
have
implemented
varying
risks
operating
zones
in
which
different
decisions
can
be
made
by
different
entities
and
went
in
in
evaluating
these
mixes.
We
did
evaluate
them
in
the
context
of
these
operating
zones
and
observed
that,
with
the
exception
of
one
all
of
the
alternatives
that
you're
considering
today
fall
within
those
CIO
risk
operating
zones
and
Daniel
talked
more
about
that
in
a
moment.
H
These
higher
growth
mixes
do,
as
Laura
indicated,
have
slightly
higher
standard
deviations
and,
and
that
really
comes
from
an
increased
exposure
to
equity
risk.
So
one
of
the
metrics
we
look
at
to
evaluate
any
risk
exposure
is
beta
and
we'll
talk
a
little
bit
about
the
equity
beta
of
these
alternatives
that
they
are
all
modestly
higher
than
the
current
or
I
guess,
let's
now
being
referred
to
as
the
prior
strategic
asset
allocation
alternative.
H
Another
measure
of
risk.
In
addition
to
equity
risk
is
our
interest
rate,
sensitivity
or
duration
risk,
and
so
we
do
look
at
that
for
these
portfolios.
It's
not
really
a
factor
for
any
of
these
portfolios,
but
again,
we'll
talk
a
little
bit
more
about
that
in
a
moment.
So,
we'd
like
to
we've
had
a
number
of
questions
and
prior
meetings
about
the
risk
operator
zones
and
I'm
how
they're
how
they're
determined
and
driven-
and
so
we
thought,
we'd
spend
just
a
few
minutes.
H
J
Thank
you.
So,
hopefully
everybody
can
hear
me,
okay,
yeah,
so
so,
prior
to
jumping
into
the
results
of
the
risk
allocation
study.
We
just
wanted
to
provide
a
little
background
here
on
this
whole
discussion
of
risk
limits
and
not
all
board.
Members
have
been
privy
to
these
discussions
so
that
we're
using
this
as
a
quick
refresher,
and
we
think
that
this
can
provide
some
useful
and
relevant
data
for
today's
discussion.
J
So
when,
when
Varys
first
came
into
this
relationship,
the
board
was
asking
questions
about
how
much
risk
they
were
taking
and
through
the
implementation
of
a
risk
system
and
through
the
reporting
that
that
we
provide
we've
been
answering
that
question
on
a
monthly
basis.
So
the
follow
up
to
that
question
is
really
how
much
risk
should
the
board
be
taking,
rather
than
how
much
are
they
taking?
J
How
much
should
the
board
be
taking
and
that's
not
a
very
easy
question
to
answer,
but
we
had
a
board
off-site
dedicated
to
diving
into
this
specific
issue
of
risk
and
we
worked
with
the
board
to
create
a
framework
that
would
uniquely
answer
this
question
for
you.
So
this
simple
diagram
here
in
this
slide
basically
distills
that
framework
down
into
its
component
parts.
So
first
we
start
with
the
with
portfolio
volatility
and
we
identify
the
expected
relationship
between
different
levels
of
volatility
and
different
expected
drawdowns.
J
Then
we
take
a
look
at
that
information
and
we
incorporate
the
board's
risk
tolerance
to
make
a
determination
about
the
appropriate
risk
ranges
and
limits
for
the
plan
and
then,
lastly,
these
are
these
all
reinforcing.
Lastly,
we
look
at
the
potential
impact
on
the
board's
financial
condition
and
objectives,
so
this
this
relationship
here
this
exhibit
shows
that
in
a
related
dynamic
of
each
of
these
component
parts
and
each
additional
piece
of
data
that
we
collect
further
reinforces
or
modifies
that
viewpoint
and
the
process
that
we
went
through
with
the
board
really
was
iterative.
J
The
other
thing
I
would
say
is
that,
while
this
calculation
of
volatility
and
draw
downs
and
even
financial
impact,
those
are
all
very
quantitative
in
nature.
This
overall
process
and
this
overall
relationship
of
honing
in
on
exactly
what's
best
and
what's
right
for
the
plan,
is
very
much
a
qualitative
process.
J
J
So
the
remaining
columns
once
we
go
past
portfolio
volatility
are
really
the
different
measures
or
different
ways
that
we
can
think
about
draw
downs.
So
there's
not
an
industry
standard
for
determining
or
defining
draw
downs,
but
these
are
really
the
most
common
methods
that
we
see
so
just
running
through
them.
Really
quick.
J
The
the
three
different
types
of
methods
that
we're
looking
at
here
and
I'll
define
the
different
percentiles
in
a
second,
but
the
first
is
var
or
Value
at
Risk
right,
and
this
calculates
the
maximum
expected
loss
over
a
one-year
period
given
a
specified
degree
of
confidence.
That's
what
the
percent
is
and
I'll
get
to
that
in
a
second.
The
next
is
C
Bar
or
conditional
value
of
risk,
so
this
is
also
referred
to
as
expected
shortfall.
It's
all
the
same
same
concept
though,
and
this
measures
the
expected
loss.
J
So
the
next
thing
that
we
look
at
here
are
the
confidence
intervals,
so
we
apply
confidence
intervals
to
both
var
and
C
bar
here.
So
a
95%
indicates
the
level
of
confidence
we
have
in
that
statement,
being
statement
of
value
being
true
or
being
correct,
so
put
more
simply
95%
buttons
intervals
suggest
we
would
be
right,
95
out
of
a
hundred
years
or
we'd,
be
right.
J
J
Wrong
once
out
of
every
100,
so
the
higher
the
confidence
interval,
the
higher
they
expect
to
draw
down
and
then
the
more
conservative
your
risk
tolerance
is.
So
we
overlay
risk
tolerance
on
this
table
to
provide
insight
into
the
considerations
for
Deford.
The
bottom
left
of
this
table
identifies
the
most
aggressive
risk
tolerance,
whereas
the
top
right
identifies
the
most
conservative,
and
so
the
trade-off
made
here
is
really
between
which
level
or
levels
of
volatility
are
appropriate.
J
How
the
board
chooses
to
define
a
drawdown
and
what
that
impact
is,
and
in
the
work
that
we
did
with
the
board
and
the
off-site
and
subsequent
meetings,
we
identified
the
limit
for
volatility
right.
This
is
the
level
to
not
be
exceeded
in
the
implemented
portfolio.
Twelve
percent
that
was
determined
based
on
selecting
a
25
draw
25
percent
drawdown
as
being
the
worst-case
scenario
and
deciding
that
seve
our
was
how
that
would
be
measured.
J
So
the
coloring
of
the
rows
here
in
the
table
also
help
identify
how
volatility
risk
is
being
managed
throughout
the
organization.
So
the
red
bar
is
where
the
board
set
its
limit
and
then
the
yellow
bar
identifies
where,
where
once
that
that
level
is
approached
or
breached,
then
the
investment
committee
is
notified
and
then
that
Green
Zone
is
the
the
chief
investment
officer's
operating
zone.
So
he's
allowed
to
operate
within
that
Green
Zone.
J
So
the
third
step
in
this
process
is
to
understand
how
these
drawdowns
potentially
impact
the
financial
condition
of
the
plan,
and
so,
if
we
move
on
to
the
next
slide.
So
here
again,
these
are
very
dense,
slides
these
last
couple
of
slides
here.
So
let
me
just
take
a
minute
to
walk
through
exactly
what
we're
showing
so
based
on
discussions
with
both
Ferriss
and
Kyra
on
the
board
selected
three
metrics
to
focus
on
when
monitoring
risk
impacts.
J
Your
time
they
chose
the
actuarial,
funded
ratio,
City
contributions
and
interest
cost,
and
so
interest
cost
is
not
as
widely
discussed
as
actuarial,
funded
ratio
or
contributions
are
so
the
easiest
way
to
think
about
this,
as
if
the
pension
plan
was
was
a
mortgage
on
your
house
right.
This
is
basically
the
amount
of
interest
you're
paying
in
each
period,
so
it
doesn't
actually
pay
down
the
principal
or
it's
not
actually
improving
your
funded
status.
This
is
just
the
amount
you're
paying
and
interest,
so
what
Chiron
did
was
basic.
J
They,
they
measured
the
impact
of
several
different
scenarios
on
the
plan
so
baseline.
This
is
Beit.
This
is
if
the
current
assumptions
are
met
over
the
next
10
years,
the
next
10
years,
and
then
we
looked
at
draw
downs
of
20,
25,
30,
35
and
40
percent,
and
measured
their
impact
on
these
actuarial
metrics
that
the
board
had
set.
J
So
there's
two
tables
here
in
this
slide:
the
first
the
first
table
looks
at
the
single
worst
year
or
the
single
worst
observation
for
each
different
metric
over
a
10
year
period
and
then
the
second
table
is
a
ten-year
cumulative
and
it
looks
at
the
end
of
the
financial
situation
at
the
end
of
that
10
year
period.
So,
basically,
what
is
our
funded
ratio
expect
it
to
be?
How
much
in
total
did
we
pay
out
in
city
contribution
and
what
was
the
total
amount
of
interest
cost
paid.
J
So,
looking
at
the
so
just
going
to
the
first
table
here
a
single
year,
so
the
board
identified
the
limit
of
25
percent
drawdown.
So
this
suggests,
if
you
just
go
across
this
line,
that
funded
ratio
would
fall
to
sixty
percent
right
and
that
City
contributions
would
increase
to
three
hundred
and
sixty
two
million
and
then
the
table
there's
a
there's,
a
line
separating
the
absolute
values
from
the
change
in
those
values
and
those
changes
are
relative
to
what
the
baseline
would
be.
J
So
from
here
we
took
that
drawdown
amount
of
25
percent.
We
revisited
the
board's
risk
tolerance.
We
took
into
account
the
volatility
levels
and
the
drawdown
amounts,
and
that's
how
we
hone
in
on
this
overall
risk
limit
and
these
risk
operating
ranges
that
we've
been
discussing.
So
hopefully,
this
is
helpful
in
terms
of
going
over
this
framework
and
hopefully
solidifying
it
in
in
everybody's
head,
so
that
we
can
have
a
discussion
about
if
this
is
appropriate,
because
this
may
change
in
the
future
if
the
board
decides
to.
J
So
as
a
reminder
these
zones
are,
these
operating
zones
are
in
place
to
manage
volatility
risk
in
the
portfolio,
so
portfolio
volatility
is
going
to
vary
through
time
and
as
the
as
the
portfolio
moves
from
one
zone
to
another,
it's
an
opportunity
to
notify
the
different
parties
right,
the
board,
the
investment
committee
and
the
CIO
to
have
a
discussion
about
these
levels
of
volatility
and
make
a
determination
about
what
should
be
done.
Just
because
something
breaches
a
zone
does
not
necessarily
mean
that
that's
a
bad
thing.
J
So
we
see
marginal
increases
in
risk
going
from
PMF
current
to
mix
a
and
more
material
increases
in
going
to
mixes,
B
and
C
and
ixy
has
200
basis
points
or
volatility
relative
to
the
current
mix
and
exceeds
the
CIL
limit
for
volatility.
We're
as
mixed
B
is
it's
closer
to
exceeding
that
green?
So
we'll
take
a
look
at
several
other
metrics.
All
move
on
to
the
next
slide.
B
A
H
As
I
mentioned
earlier,
risk
adjusted
each
Pergamus
one
of
the
metrics
that
we
look
at
in
terms
of
evaluating
the
relative
attractiveness
of
one
strategic
asset
allocation,
alternative
versus
another
and
there's
you
look
across
here,
they're
all
very,
very
similar.
Okay,
all
around
2.5.
We
go
to
one
digit,
with
the
exception
of
60/40.
H
This
is
that
there's
a
10%
increase
in
equity
data
increase
or
decrease
in
equity
beta.
The
new
current
mix,
which
was
mix
a
for
that
10%
increase,
would
increase
a
6.6
percent,
or
that
was
a
10%
decline.
We
declined
6%
and,
conversely,
the
highest
growth
option
with
the
highest
equity
beta
relationship,
makes
C
would
move
7.6
percent
or
have
a
return
of
7.6
percent
if
the
equities
were
to
increase
by
10
percent
and,
conversely,
declined
by
that
amount.
H
However,
this
chart
shows
risk
allocation
so,
for
example,
and
stay
with
mix
mix
a
that's
roughly
a
40%
exposure
to
public
equities,
whereas
Moxxi
the
80/20
portfolio
was
has
about
a
51%
exposure
to
public
equities.
So,
as
you
can
see,
the
contribution
to
risk
from
those
two
exposures,
roughly
40%
and
51%,
actually
translate
to
a
much
higher
contribution
to
risk
from
that
exposure.
It's
over
80%.
In
both
cases,
there
are
contributors
to
risks,
but,
as
you
can
see,
they're
much
muted.
The
second
largest
contributor
is
your
credit
risk
exposure
so
again
similar
to
equity
beta.
H
As
you
look
across
these
mixes,
and
you
see
the
changes
in
contribution
to
risk
from
changing
your
exposures
that
you
again
would
be
relatively
indifferent
between
these
mixes,
because
the
contribution
to
risk
is
very
similar
from
that
equity
or
increased
equity
exposure
and
I'll.
Let
Danny
make
a
couple
comments
about
slide
10,
which
is
yet
another
risk
metric
that
is
important
to
consider
in
determining
whether
or
not
to
move
to
a
very
various
asset
allocation,
alternative.
J
Exciting
yeah
so
slide
10
looking
at
effective
duration.
So
this
this
helps
us
identify
how
sensitive
the
portfolio
is
to
broad
interest
rate
movements
right
and
so
in
the
case
above
pmf
current
has
a
duration
of
2.2
years.
So
this
means,
if
interest
rates
fell,
1%
we'd
expect
the
current
portfolio
to
be
out
2.2
percent.
Conversely,
if
interest
rates
rose,
1%
we'd
expect
the
portfolio
to
be
down
2.2
percent
and
this
the
same
logic
can
be
applied
across
all
these
mixes.
J
That's
not
part
of
the
conversation,
but
it
is
important
to
identify
that
that
mismatch
between
the
way
that
the
portfolio
is
implemented
and
the
risk
of
your
liability
stream
are
very
different.
So
that's
the
only
point
I
would
make
there
that
the
duration
between
each
of
these
asset
mixes
is
very
small.
H
So
I
think
we've
shown
the
scenario
analysis
before
we
tried
to
make
a
little
bit
more
distinctions
between
the
bars
and
there's
also
a
table
in
the
appendix,
if
you
prefer
looking
in
a
table.
But
the
way
to
read
this
is
the
legend
reads
from
left
to
right
and
the
bars
are
ordered
similarly
from
top
to
bottom.
So,
for
example,
the
police
and
fire
current
is
the
orange
bar.
It's
at
the
top
of
every
one
of
these
scenarios.
H
In
the
case
of
the
2002-2003
environment,
you
know
that
we
would
expect
the
current
portfolio
or
two
or
roughly
decline
about
about
23%
where,
as
or
25%,
whereas
say
the
80/20,
the
most
aggressive
portfolio
would
sell
off
north
of
30%.
So
while
we
don't
want
to
have
the
downside
drive
ultimately
our
exposure,
you
know
there
is
a
lot
of
focus
on
downside
risks,
given
the
existence
of
your
risk
limits,
and
so
it
is
important
to
be
cognizant
of
that
downside.
H
In
terms
of
evaluating
these
alternatives,
we
also
created
what-if
scenarios,
the
worst
being
global
equities,
selling
off
20%
and
again
there.
You
do
see
the
distinction,
it's
not
as
great,
but
clearly
higher
growth
portfolios
can
offer
higher
growth,
but
during
these
down
market
environments
they
do
tend
to
perform
worse
and,
of
course,
as
you
know,
it's
harder
to
work
your
way
out
of
a
hole
when
you
get
Seifer
because
of
the
compounding
of
the
negative
return,
and
that's
why
we
care
about
that.
H
J
Yeah,
so
this
is
the
final
slide,
we'll
discuss
here
in
our
presentation
and
then
we'll
open
it
back
up.
So
we're
still
in
the
midst
of
this
shock
right.
So
the
final
results
of
this
scenario
are
still
yet
to
be
determined
and
the
magnitudes
that
we're
seeing
in
terms
of
movements
on
a
day
to
day
basis
are
extremely
large.
So
you
know
I
guess
the
takeaway
here
is
this.
J
So
this
includes
a
partial
recovery
in
this
result
and
then
that
second
shock
or
the
teal
bar
looks
at
the
expected
performance
of
each
of
these
different
mixes,
starting
from
February
21st,
which
is
when
we
first
started,
see
markets
reacting
negatively
to
this
news
through
the
clothes
on
3:24.
So
this
is
the
peak
to
trough,
and
this
is
once
this
has
taken
its
cores
and
we
know
exactly
how
markets
reacted
to
this.
J
The
peak
to
trough
is
a
similar
methodology
to
what
we
use
in
our
other
scenarios,
so
think
about
it
in
those
terms
and
so
right
now,
if
we
were
to
use
this
peak
to
trough
right
we're
experiencing
this
in
real
time,
but
this
is
going
to
be
discussed
along
side,
the
the
GFC
and
the
tech
bubble.
It's
we've
seen
draw
downs
to
that
magnitude.
J
H
A
G
Thank
You
mr.
chairman,
so
just
a
couple
of
comments,
but
before
that
the
other
item
on
the
agenda
is,
is
just
a
one-page
write-up
that
investment
officer
Brian
star
put
together.
This
was
a
question
raised
by
trustee
menon
at
the
IC
I
believe
and
who
wanted
to
know.
You
know
how
private
markets
are
faring
in
this
environment,
and
so
we
put
together
what
we
have
found
so
certainly
happy
is
fairly
straightforward.
We're
certainly
happy
to
take
questions
on
that
at
any
point
now
going
back
to
this
this
discussion.
G
Perfect
Thank
You,
Linda
Barbara,
so
the
question
and
before
we
open
it
up
for
questions
of
makita,
Varys
and
myself
and
discussion.
The
question
before
us
today
is:
do
we
want
to
stay
at
mix
a
certainly
an
option
at
70/30,
or
do
we
want
to
move
to
mix,
B
or
mix
C,
and
certainly
with
each
of
these
mixes?
We
ratchet
up
the
risk
level.
G
So
3/8
a
bigger
shift
there
if
we
move
to
8020,
so
both
mix,
B
and
mix
see
take
on
a
little
bit
more
risk
with
the
potential
of
greater
returns
coming
from
both
public
assets
and
private
assets.
Now,
if
you
look
at
the
current
mix,
it
may
not
seem
like
these
are
big
changes,
but
it
is
important
to
keep
in
mind
that
we
moved
from
a
different
level.
G
So
PMF
prior
is
has
39%
in
public
equity,
for
example,
so
going
from
PMF
prior
to
mix
C
would
mean
a
jump
from
39
to
51%,
and
so
that's
something
to
keep
in
mind
as
we
discuss
the
various
options
with
that.
Mr.
chairman
I
will
stop
now
and
we'll
be
happy
to
take
questions
along
with
our
consultants.
A
No,
thank
you.
Everybody
for
the
presentation,
probably
thank
you
for
setting
up
the
discussion.
Just
to
reiterate
what's
before
us
today
is
an
option
to
either
stay
where
we're
at
or
to
even
move
further
up
the
risk
profile,
and
we
can
always
tie
that
to
a
certain
level
too.
So
so
think
about
that.
When
we're
having
discussions
and
you're
asking
questions,
because
towards
the
end,
we
will
do
well
have
to
come
to
an
agreement
on
what
we
want
to
do
if
that
means
staying,
put,
moving
forward,
etc.
A
F
Yeah
good
real,
quick,
Andrew
one
is
probably,
after
all,
the
trustees
have
sort
of
made
comments
or
ask
questions.
I'm
gonna
count
a
DeGraw
gonna
count
on
you
represent
not
just
what
you
and
staff
think
we
should
do,
but
also
trustee.
Oswald
has
spent
a
lot
of
time.
Thinking
about
this
and
is
not
here
with
us,
I
hope
you
can
convey
his
thoughts.
He
had
some
definite
ones
from
the
last
fall
right,
great
big.
So
so
we
always
turn
to
this
thing.
F
Great
there's
a
comment
now,
grading
on
a
curve
or
grading
absolute
and
the
work
that
Danny
and
Varys
has
done
is
absolutely
first-rate.
Danny
did
such
a
good
job
of
explaining
it.
Thank
you,
and
that
is
the
absolute
view
if
we
were
the
only
pension
fund
in
the
universe.
What
would
we
do
is
important
to
remember
and
verus
also
include
this
in
their
analysis,
but
we're
not
the
only
pension
fund.
F
Barisan
makitas
well,
and
we
know
what
to
do
and
80
percent
of
the
time.
We
seem
to
be
lagging
our
peers
because
we're
conservative-
and
this
is
the
time-
probably
not
to
be
conservative
and
so
we're
always
because
of
the
unusual
leverage.
We
have
that
our
actuaries,
reminding
us
of
electricity's
just
to
remember
that
we
are
conservative
most
the
time
and
there
is
probably
a
time
to
not
be
conservative
and
that's
probably
now.
Thank
you.
Andrew.
C
C
And
the
volatilities-
these
are
calculators
were
long.
A
long
period
of
time
was
like
tenure.
Yeah,
that's
correct,
okay,
and
do
they
change?
If
you
know
I
mean
you've
gone
through
a
very
volatile.
So
if
you
were
to
run
this
say
the
middle
of
the
year,
would
you
see
these
numbers
change,
we're
something
which
is
in
a
green
zone
or
you
know
most
of
the
yellow,
the
yellow
most
of
the
red?
Yes,.
J
Yeah,
so
we,
the
system
that
we
use
here
to
monitor
risk
were
we're
actually
monitoring
their
risk
of
the
implemented
portfolio.
In
addition
to
all
of
these
kind
of
static,
different
mixes
right.
So
what
we
care
about
is
what
we're
talking
about
here
is:
where
does
the
policy
or
the
strategy
fit
in
the
context
of
these
operating
zones?
And
then,
each
month
we
report
on
where
that
sits,
where
the
policy
sets,
as
well
as
where
the
implemented
portfolio
sits
in
terms
of
these
zones.
J
So
so
the
idea
here
is:
is
the
board
has
to
home
in
on
their
risk
tolerance
right?
So
the
point
here
is,
as
you
move
further
left
on,
this
chart,
you're
being
more
aggressive
right,
you're,
assuming
the
draw
downs
will
be
lower
than
if
you
move
further
right
on
the
chart
where
those
those
different
metrics
are
capturing
higher
drawdown
amounts.
So
what
we're
saying
is
you
know
if
we,
if
we
increase
our
our
confidence
interval
or
if
we
start
using
scenarios
that
are
not
based
in
statistics,
right,
they're,
based
in
actual
history?
C
I
C
And
so
so
for
us
large
cap
equity,
for
example,
you
have
a
tenure
expected
return
of
six.
You
know
emerging
market
7.8
on
the
private
I
am
interested
in
the
private
market
side.
So
on
private
equity,
you
have
9%
private
debt
27.4,
so
those
numbers
you
know
are
higher
and
supposing
you
go
through
an
environment
like
this,
where
you
know
I
would
expect
that
when
you
revise
these
numbers,
maybe
you
know
everything
is
higher.
Would
you
expect
that
you
would
expect
the
private
markets?
I
C
I
I
mean
I
think
from
a
global
macroeconomic
standpoint.
A
lot
of
folks
are
really
concerned
about
credit
markets.
Right
now
you
know
we
have
historically
low
interest
rates,
even
though
the
federal
government
is
buying
a
lot
of
debt.
I
think
a
lot
of
folks
think
that
equities
are
more
attractive
on
a
relative
basis.
C
Okay,
thank
you.
So
mr.
Chairman
I
would
actually
you
know,
agree
with
Drew,
and
this
goes
with.
You
know
kind
of
the
discussions
we
had
in
the
IC
that
this
is
probably
a
time
for
us
to
maybe
increase
our
risk.
The
only
thing
I
would
say
is
that
you
know
I
think
maybe
if
you
have
some
flexibility,
give
the
investment
stress
and
flexibility,
and
maybe
they
can
work
with
the
IC,
where,
if
there
are
compelling
opportunities
in
the
private
side
that
there
is
a
capacity
to
maybe
act
on
those
also
that
may
be.
A
A
I
C
I
A
B
Yes,
this
is
how
yeah
Thank
You,
Eileen
and
Danny
and
Laura
for
the
the
analysis,
it's
very
good
just
to
go
back
to
what
trustee
menon
was
talking
about
with
slot
on
the
Baris
on
the
very
slide
slide.
4,
and
maybe
this
is
for
Prabhu,
because
since
I'm
come
relatively
new,
the
12%
limit
on
the
risk
tolerance
is
that
was
that
set
at
it
at
a
different
time
and
was
that
different,
last
year's?
Or
is
that
different
from
what
was
in
the
IPS?
That.
G
Trustee
Howard,
that
was
actually
a
very
study
that
was
conducted
about
two
years
ago
and
Danny
and
Eileen
jump
in
if
I'm
not
getting
the
dates
right
and
they
actually
can
list
trustees
and
stakeholders.
Various
stakeholders
I
believe,
including
our
sponsor
to
come
up
with
those
numbers.
There
was
about
two
years
ago.
B
Okay,
okay
and
so
going
back
to
also
it's
about
the
the
private
I
I
agree.
I
think
that's
I
think
that
flexibility
of
shifting
into
the
private
markets,
whether
it's
buyout
or
even
private
debt
and
I,
think
maybe
someone
will
talk
about
credits
later.
That
might
be
an
opportunity.
One
question:
I
do
have
also
on
them.
The
memorandum
on
the
update
on
the
private
market,
which
I
thought
was
very
good.
B
It's
very
succinct
at
the
very
end,
I
think
Brian
mentions
in
a
capital
constrained
environment
that
staff
is
spending
more
time,
educating
the
market
and
how
he
could
be
a
solution
provider
for
general
partners
looking
for
attractive
opportunities.
What
what?
What?
What
examples
that
would
there
be.
B
I
One
thing
I'd
add
is
that
you
know
with
any
asset
allocation.
We
recommend
having
target
ranges
and
you
do
have
in
your
investment
policy
statement
the
ability
for
the
Prabhu
and
the
staff
to
rebalance.
So
you
know,
even
if
you
adopt
a
particular,
you
know
exact
amount
in
a
certain
asset
class.
There
is
still
some
flexibility
to
take
advantage
of
the
current
market
environment.
K
K
K
So
I
think
we
do
need
to
consider
moving
to
model
B
and
C
or
asset
mix,
B
and
C,
but
I
think
we
need
to
be
very
explicit
to
staff
on
when
we
make
those
shifts,
and
my
recommendation
to
this
board
would
be
upon
further
draw
downs.
So
if
we
have
moved
the
last
time
when
the
markets
were
down
approximately
30
percent,
if
we
go
down
a
level
of
40
percent,
I
think
we
should
be
looking
at
shifting
to
asset
mix,
B
and
God
forbid.
K
K
The
only
thing
for
me
that
would
prevent
me
from
staying,
Ora
and
consider
adopting
model
nixb
now
is
the
fact
that
interest
rates
are
so
low
that
it's
going
to
have
a
negative
impact
on
our
ability
to
achieve
our
assumed
return
and
we're
talking
about
a
yield
of
0.6%
on
a
ten-year
try
3.
It
makes
it
very
difficult,
even
if
we're
shifting
towards
some
investment
grade
and
high
yield
to
achieve
our
assumed
returns,
but
but
I
think
we've
made
some
smart
moves
in
the
last
month
staff,
initially
over
weighted
equities.
C
B
A
A
G
G
So
trusty
Lanza
pointed
out
rightly
so.
The
crux
is
really:
you
know
the
new
slides
put
together
by
Danny
excellent
slides,
which
show
that
even
with
mixi,
you
know
we're
still
within
it's
not
outlandish
in
terms
of
risk.
So
that's
and
we
also
know
the
numbers
and
obviously
you
know
these
are
predictions
based
on
statistical
models,
but
at
least
we
have
an
idea
there
and
trusty
Lanza
also
mentioned.
This
is
not
the
time
to
be
conservative
and
I.
G
Think
everyone's
in
agreement
with
that
we've
been
waiting
for
draw
downs
for
a
long
time
and
as
trustees
and
Zuri
mentioned,
we
moved
quickly
and
we
took
advantage
of
the
first
phase
of
the
drawdown
within
time.
The
bottom
perfectly,
which
was
2200
about
but
I,
think
most
of
our
purchases
were
around
2400
trustee
Lanza
also
requested
that
I
convey
what
trustee
Oswald
mentioned
at
the
IC
and
trustee.
G
He
spoke
about
the
relative
attractiveness
of
private
markets
versus
public
markets
and
I
agree
that
there
could
be
opportunities
here
in
private
markets
and
in
fact,
if
we
go
back,
I've
seen
some
venture
data
which
show
that
and
even
in
private
equity
buyouts,
the
best
vintages
where
those
after
the
great
financial
crisis.
So
in
the
next
year
or
two
beginning
now,
we
may
have
some
tremendous
opportunities
there
and
in
terms
of
Inc
allocation
to
private
markets,
we
make
the
allocation
to
public
markets
now
and
then
shift
to
private
markets
as
opportunities
present.
G
That's
something
we
can
sort
of
work
with
the
IC
and
figure
out
how
best
to
do
that
and
trustee
Lee
mentioned
this
as
well.
In
terms
of
the
attractiveness
of
PE
buyouts
and
and
credits,
there's
a
couple
of
ways,
the
other
way
of
doing
it,
of
course,
is
if
we
have
a
pacing
plan,
and
if
we
find
that
our
really
good
opportunities,
we
can
always
work
with
the
placing
plan
as
well.
G
Finally,
trustee
Sunseri
mentioned
you
know
going
to
mix
B
with
a
40%
drawdown
that
would
put
the
S&P
at
about
20
50,
20,
40,
and
so
that
would
be
in
another
10%
or
so
decline
from
here
and
then
to
mix
C
at
a
50
percent
drawdown
which
would
be
1700
on
the
S&P,
so
I
think
all
all
very
reasonable
suggestions.
It
looks
like
everyone
is
of
the
same
opinion,
as
am
I
that
we
should
move
to
mix
B.
Now
it's
a
question
of
trying
it
to
you
know:
when
do
we
do
this?
So
it's
hard.
G
You
know
at
some
level
when
we
tie
this
to
the
S&P.
We
are
sort
of
timing,
the
market
and
which
is
a
difficult
exercise.
In
my
opinion,
I
stand
and
agree
with
the
logic
saying
that
we
are
at
a
certain
level
today
and
move
quickly,
and
if
there
is
another
10
percent
drawdown,
we
could
tie
that
to
moving
to
mix
B.
G
But
you
know
if
you,
if
you
look
back
if
you
go
six
months
from
now
three
six
months
from
now
who
knows
market,
maybe
we
may
have
gone
to
mix
B
or
mix
E
and
the
market
may
be
down
another
30
percent
and
our
plan
will
suffer
for
that.
But
if
we
take
a
long-term
view
and
if
we
go
out
five
years
or
seven
years,
I
think
this
is
the
absolute
right
move,
whether
it's
2200
or
2300
or
2000
I.
G
Think
we
look
back
and
be
glad
that
we've
taken
on
more
risk
because
it
has
to
put
greater
returns
so
again,
I'm
an
agreement
that
we
should
move
to
mix
Mead.
That
would
certainly
be
my
recommendation
and
trusty
sincere.
He
made
a
specific
recommendation
which
I'm
very
comfortable
with
which
is
about
a
10%
drawdown.
G
Actually,
that
would
be
greater
than
it
about
a
20%
drawdown
from
current
levels
would
would
be
a
40%
draw
down
from
the
peak
which
would
be
moving
to
mix
B.
So
the
last
we
hit
the
bottom
at
about
2200
a
couple
of
weeks
ago.
We
we
could
retest
that
bottom,
it's
hard
to
say
now.
Could
we
go
to
2,000?
We
could
again.
G
None
of
the
analysts
on
the
street
have
a
good
handle
on
this.
As
just
recently
mentioned,
I've
looked
at
Bank
of
Bank
of
America,
as
so
far
has
been
the
most
pessimistic
in
terms
of
earnings,
and
they
came
out
with
the
S&P
at
about
138
dollars
a
share
and
at
16
times
138.
That
would
put
the
market
at
2200
and
at
15
times
multiple
that
would
put
the
market
at
2070.
So
you
know
you
could
split
the
difference
again.
G
It's
very
hard
to
time
these
things,
but
I'm
I'm
in
favor
of
moving
to
mix
B,
and
we
just
need
to
come
up
with
a
consensus
on
what
that
range
should
be,
as
opposed
to
a
single
number,
because
you
know
if
we
say
at
2400,
we
could
easily
miss
that.
But
if
there
is
some
range,
if
we
say
between
2200
and
2400,
or
between
2000
and
2200,
that'll
make
it
easier
for
us
to
work
with
that.
A
Yes,
you
can
make
Mook
motion.
I
still
want
to
get
a
couple.
People
that
haven't
spoken
in
two
I
wanted
to
ask
council
member
full
leaf.
Should
you
like
to
make
a
comment
and
and
see
what
Harvey
and
Roberto
want
to
make
any
comments,
but
first
okay,
all
right
Thank,
You
councilmember
fully.
Is
there
any
comments
or
questions
that
you
might
have.
D
C
D
You
can't
see
me
but
I
in
light
of
the
CIOs
comments
which,
which
marries
you
know
we're
talking
about
the
risk
in
the
portfolio.
The
reason
we're
talking
about
that
is
the
potential,
as
Prabhu
mentions
the
potential
of
greater
returns,
and
so
I'd,
like,
on
behalf
of
the
board
I'd
like
to
broaden
the
discussion
a
little
bit
beyond
just
looking
at
the
asset
mixes
to
get
a
little
bit
more
information.
D
If
you
don't
mind
for
the
board
to
consider
in
two
regards
one
I'd
like
to
ask
both
Makita
and
Baris
about
any
changes,
they
anticipate
in
their
capital
markets,
projections
on
which
these
return
anticipations
are
based
in
light
of
two
things.
First,
the
current
t-bill
rates,
I
think
trustee
Sunseri
rightly
observed
that
when
we
put
a
real
return
on
top
of
risk-free
rates
to
come
up
with
our
capital
markets,
projections
were
rock
bottom
on
the
risk-free
rates
at
this
point.
D
Ability
to
make
contributions
so
that
we
can
invest
in
a
level
that
will
give
us
the
expected
returns
that
we
want,
and
so
I'd
like
to
spend
a
little
bit
of
time,
focusing
on
our
cash
flow
and
the
city's
ability,
if
we
take
on
additional
risk
to
make
a
significant
increase
in
the
city's
contributions
during
this
period.
So
thank
you,
I!
Don't
want
to
prolong
the
conversation
there
necessarily,
but
it
seems
to
me
that
we
needle
in
just
a
little
bit
more
context
in
which
to
consider
increasing
the
risk
of
the
portfolio
Thank
You
mr.
D
L
This
is
councilmember
Pam,
Foley
and
I'm.
Sorry
that
I
stepped
out
for
a
minute.
When
maybe
you
asked
me
to
to
speak
but
I
appreciate
the
conversation
about
increasing
risk,
but
I
am
very
mindful
of
the
city's
increased
contributions
and
the
that
that
may
or
may
not
result.
The
the
baseline
of
225
million
is.
L
Be
difficult
for
the
city
to
meet.
Of
course,
that's
our
obligation
given
the
baseline,
but
the
Cova
virus
is
having
a
tremendous
impact
on
our
fiscal
ability
to
move
forward,
and
may
we
may
see
already
for
this
fiscal
year
that
we're
in
the
midst
of
reduction
on
expenditures
and
services
and
going
forward
in
2021.
We
may
see
a
dramatic
reduction
in
anything
beyond
core
services
for
the
city.
A
A
L
Industry
is
way
down,
so
our
t,
OT
taxes
are
our
hotel
tax
is
way
down.
Our
sales
tax
is
way
down,
as
people
are
staying
home
and
not
shopping
as
much
property
taxes
are
due
so
we'll
see
if
people
actually
pay
their
property
taxes.
That
will
impact
us
a
little
bit,
but
I
haven't
heard
any
numbers
other
than
from
the
city
manager.
L
E
A
Yeah
Roberto
I
mean
when
you
do
hear
something
from
that
meeting.
You
have
please
pass
it
on,
because
that's
something
that
we
definitely
need
to
be
thinking
about.
As
trustees
and
I
know,
this
was
a
topic
that
I
think
we
could
really
tackle
when
I
believe
they're
not
bears
Chiron
could
be
coming
next
month.
To
talk
to
us
is
that
correct?
Yes,.
E
So
if
I,
if
I
may
jump
in
absolutely
I,
can
wait.
So
thank
you
counsel
for
us
those
wise
comments.
You
know
you've
been
doing
those
for
now.
18
years,
I
mean
press
council,
but
in
any
case,
so
a
couple
of
things
I
was
going
to
mention
some
of
this
information.
During
my
on
a
report,
I
have
kept
both
board
chairs
and
bite
us
apprised
of
the
situation,
so
I've
been
in
communication
with
Chiron.
E
It
would
be
helpful
to
understand
from
various,
although
I
think
I
know
the
answer,
the
numbers
that
are
here
obviously
they're
estimates
but
I
think
they're
on
a
market
value
basis.
In
other
words,
when
we
do
the
evaluation
from
2020,
the
contributions
are
going
to
be
based
on
an
actuarial
value,
especially
on
a
on
a
big
downturn
for
one
year.
We're
only
going
to
be
accounting
for
20%
of
that,
so
there
is
going
to
be.
E
The
actual
return
will
still
be
considerably
lower,
even
maybe
negative,
but
it
would
be
very
different
than
the
actual
market
value
returns.
So
we
could
have
it
for
the
year
we
could
have
a
30%
market
return
negative
for
the
national
basis.
He
may
just
be
510
base
5
and
a
5
percent,
which
is
still
obviously
a
very
bad
return,
but
not
as
as
big
as
the
market
return.
E
E
To
further
the
duration
of
the
market,
we
recognize
we
can
find
a
market,
but
I
think
the
CEO
suggests
having
some
range
that
the
staff
can
come
and
can
be
considered
so
that
if
we
have
to
dial
all
the
ways
we
can
do
that.
That
will
be
helpful.
But
in
terms
of
at
this
moment
we
have
been
very
patient.
We
have
been
telling
the
parents
for
some
sponsor
for
seven
years
now
that
we
have
taken
less
risk
than
our
peers
and
I
think.
E
This
is
the
moment
that
we
have
been
waiting
for
to
really
dial
that
risk
and
Dynel
of
the
risk
to
a
7520.
They
will
keep
us
in
the
green
zone
arrest.
So
I
think
you
know
that
that
should
be.
That
should
be
the
concept
and
I
think
that's
what
the
board
my
recommendation
in
support
of
the
CIO
comments
and
some
trustees
to
move
there
now
and
then
any
further
risk
could
be
again
given
a
specific
thresholds
within
the
SMP
Thank
You.
Mr.
chair
yeah,.
A
No,
thank
you
Roberto
to
get
to
get
back
to
you
know
some
of
Harvey's
questions
and
comments
and
concerns
and
councilmember
Foley's
I.
Definitely
it's
been
in
my
mind
about
this.
Is
that
sponsors
revenue
and
how
that's
going
to
impact
us
and,
and
you
know
what
can
they
afford?
Knowing
that
you
know,
services
might
be
reduced
and
stuff
like
that
and
the
investment,
the
portfolio
and
investments
returns.
A
They
do
overlap
with
the
actuarial
stuff,
but
at
the
same
time,
I
believe
that
the
best
way
to
help
this,
the
sponsor
in
the
city
and
ensuring
that
we
have
you
know
a
proper
revenue
coming
in
to
the
plan
would
be
addressed.
When
we
talk
about
the
actuarial
stuff,
the
discount
rate,
the
gaining
gain
and
loss
of
smoothing
the
amortization
schedule
and
we've
always
talked
in
the
past.
A
But
then,
during
that
time,
downturns
you
know
is
pull
back
on
some
of
those
lovers
and
and
trying
to
find
that
balance
and
I
have
in
my
mind
you
know
that's
what
I
hope
to
achieve
in
the
next
few
months
when
we
start
having
Chiron
does
come
back
to
us
that
we
can
revisit
that
and
find
a
way
that's
best
for
best
for
our
plan.
Here,
that's
what
we
have
you
know
fiduciary
responsibilities
for
then
also
to
take
and
consideration
of
our
sponsors
and
our
membership.
A
D
No
wasn't
a
particular
slide.
Mr.
chairman,
it
was
more
on
just
getting
an
understanding
in
the
current
context
of
the
markets,
whether
makida
or
Baris
were
anticipating
changes
in
their
capital
market,
their
expectations
of
risk/reward
in
terms
of
capital
markets,
projections
based
upon
both
the
near
zero
current
risk,
reachable
rates
and
the
impact
on
those
projections,
and
also
whether
they're,
anticipating
that
eventually,
the
way
we're
going
to
get
out
of
this
central
bank
intervention
is
through
inflation
and
whether
they're
they're
changing
their
inflation
component.
Expectations
of
the
capital
markets,
projections.
I
Yeah
I
can
discuss
those
questions
briefly:
Thank
You
Harvey
in
terms
of
capital
market
expectations,
and
you
know
any
given
day.
If
we
were
to
recalculate
them,
it
would
be
different
given
how
volatile
the
markets
have
been
day
to
day.
That
said,
the
the
effect
of
lower
interest
rates
will
flow
through
to
essentially
all
of
the
council
market
expectations.
Given
that
they're
a
building
block
that
we
use.
I
However,
that
said
we
think
there
will
be
a
bigger
impact
from
lower
equity
valuations
and
if
you
take
a
look
at
slide
six
and
you
look
at
mix
a
or
the
current
relative
to
missus,
B
or
C,
you
see
a
lower
fixed
income
rate.
You
know
you
went
from
14%
in
short
term
bonds.
Now
we're
at
12%
an
investment
grade,
mixes,
B
and
C.
Take
that
investment
grade
bonds,
a
location
down
to
8
or
6%,
so
the
impact
of
lower
interest
rates
would
be
less
on
mrs.
B
or
C.
I
Then
the
the
asset
allocation,
where
we
are
right
now,
so
we
and
we
will
at
some
point
this
year-
recalculate
our
travel
market
expectations,
it's
difficult
to
sort
of
determine
when
that
should
be
so
I
think
we're
looking
at
sort
of
June
30th,
just
to
use
a
sort
of
you
know
midway
through
the
year
date.
Since
you
know
it's
going
to
be
arbitrary.
Whatever
date
we
choose,
I
would
expect
that
all
of
these
long
term
expectations
for
returns
point
would
be
slightly
higher
and
where
they
are
now
in
terms
of
inflation.
I
That's
something
that's
very,
very
difficult
to
predict.
It
could
be
a
risk
in
the
future
and
that's
one
reason,
but
on
some
of
our
additional
slides
in
this
presentation,
we
do
look
at
the
impact
of
inflation
or
rising
interest
rates.
For
example,
the
economic
regime
analysis,
which
is
on
page
15
of
the
makita
presentation,
looks
at
how
a
shock
in
inflation
would
affect
each
of
these.
I
These
different
asset
allocations,
the
the
prior
allocation,
that's
already
been
moved
from,
would
have
been
about
the
same
as
mixi
in
terms
of
being
exposed
to
inflation
and
and
having
a
positive
return.
And
so,
if
you
look,
there's
not
huge
differences
between
the
mixes
that
we're
looking
at
the
pure
median
and
the
60/40
are,
would
not
have
that
same
positive
bump
from
from
inflation
risk
and
an
inflation
surprise.
One
of
the
reasons
that
we
try
to
stay
really
diversified.
I
If
you
take
a
look
back
at
page
six
at
the
different
asset
allocations
is
because
you
know,
when
you
have
a
different
yeah,
that's
the
classes
that
sort
of
zig
and
zag
in
different
ways.
You
know
real
estate
might
do
better
in
an
inflationary
environment,
fixed
income
might
do
worse,
and
so
we
try
to
just
diversify
those
risks
and
in
terms
of
the
the
trade
off
with
the
sponsor
or
your
question,
about
sponsor
contributions.
Of
course,
we
know
that's
a
huge
issue
for
the
board,
it's
one
that
is
very
difficult.
I
Sometimes
we
feel
like
you
can't
win,
because
you
know
if
you
take
less
risk,
you
underperformed.
Here's
in
an
environment
like
2019
and
when
markets
are
tough
and
given
that
you
know
sometimes
you
don't
get
the
credit
you
all
deserve
for
taking
less
risk
and
protecting
in
a
market
environment
like
we
have
right
now.
So
obviously,
a
huge
trade
off
you
know
in
general
markets
have
gone
up
over
long
periods
of
time,
which
would
indicate
that
taking
more
risks
should
be
rewarded
and
a
returns
basis.
H
And
if
I
could
make
a
comment
on
the
inflation
aspect,
this
was
a
big
fear.
If
you
recall
from
all
of
the
stimulus
that
occurred
after
the
global
financial
crisis
and
as
you
know,
we
did
not
see
really
meaningful
inflation.
We
were
only
recently
starting
to
see
inflation
actually
from
underlying
wage
and
salary
growth,
which
took
a
long
time
and
unfortunately,
we're
in
this
environment.
H
So
I
think
the
the
issue
is,
you
know
what
they
it's,
not
just
the
flooding
the
system
with
money
that
money
has
to
move
around
the
system
and-
and
that
has
to
do
with
the
velocity
of
money-
and
that's
what's
really
been
absent.
That's
why
we
didn't
see
inflation
after
the
global
financial
crisis,
and
it
remains
to
be
seen
whether
that
comes
back.
But
that
to
me
is
another
variable
that
we
consider
anyway,
when
we're
developing
our
forecasts,
short-term
forecasts
or
inflation.
H
D
F
Right,
thank
you.
Andrew
can
I
jump
in
on
this
issue.
I
think
the
harder
you've
raised.
What
is
actually
very
deeply
philosophical
issue
and
I
would
answer
it
this
way
they
could
have
put
the
money
under
a
mattress
when
they
created
this
pension
fund,
but
they
didn't
and
they
chose
deliberately
not
just
us,
but
everybody
to
incorporate
some
risk
because
the
future
would
in
all
likelihood
be
brighter.
The
future
is
not
always
brighter.
F
F
Percentage
of
cases-
and
it's
not
99
percent
Harvey,
it's
probably
95
percent.
There
is
always
a
God
pick,
a
number
Harvey
one
in
70,
one
in
a
hundred
chance
that
the
whole
world
falls
apart
and
it
couldn't
happen
with
this
pandemic.
If
the
virus
mutates
right
and
I.
Just
think
that
is
not
our
job.
We
were
not
put
in
charge
of
money
under
a
mattress.
We
were
put
in
charge
of
money
that
was
deliberately
at
some
level
of
risk
and
I
think
we
are
doing
this
exactly
right.
F
Harvey
we
are
trying
to
calibrate
both
apps
and
relative
risk.
I
think
we're
doing
stride
listening
to
Councilwoman
Foley.
You
know,
let's,
let's
not,
let's
not
kill
the
sponsor,
but
there
is
always
a
way
Harvey
through
this
maze
where
we
all
die
and
I
just
think
it
can't.
We
can't
go
to
the
three
sigma
point:
we
have
to
go
to
the
two
sigma
point,
maybe
maybe
similar
to
one
of
the
two
sigma.
So
if
you
two
generation
ever
hears
this
on,
yes,
we
take
risk,
and
that
means,
by
definition,
with
great
inceptions
plan.
F
In
some
sets
of
circumstances
you
go
to
war
and
you
lose
and
some
sets
of
circumstances
a
virus
kills
50%
of
your
people,
I.
Don't
think
any
of
that's
going
to
happen.
But
just
if
history
is
any
indicator,
we
can
certainly
point
backwards.
I
don't
mean
to
be
a
woman
doom
Harvey,
but
we
do
need
to
pick
some
level
of
risk.
A
K
K
Makeup
of
the
plan,
the
plan
sponsor
the
first
comment
on
capital
market
assumptions.
Is
it's
important
to
understand
that
when
markets
draw
down
like
this
future
returns
will
expect
it
to
be
higher
for
equity
markets,
so
that
actually
will
have
a
positive
impact
on
what's
happening?
Maybe
that's
enough
to
offset
the
lower
expected
returns
from
fixed
income.
K
K
Shift
to
another
portfolio,
it
doesn't
necessarily
mean
that
we're
going
to
see
those
kinds
of
draw
downs
because
drawing
our
risk
after
the
market
has
seen
a
decline.
I
just
want
to
make
those
points
to
help
stem.
My
motion
will
be
to
direct
staff
and
give
them
the
authority
to
shift
from
where
we
are
now
to
asset
mix,
be
as
a
markets
draw
down
anywhere
between
35
and
40
percent
from
their
eyes
and
to
shift
to
ask
the
mix
see
if
markets
decline
greater
than
50
percent
from
their
high
markets.
K
I
would
refer
to
we've
been
talking
about
the
S&P
500,
but
the
reality
is
we're
using
proxies
such
as
the
Russell
3000
and
the
MSCI
Act.
We
I
I
would
include
any
of
those
indexes
as
measures
of
these
draw
downs,
so
it
could
be
the
S&P
500,
it
could
be
the
Russell
3000
or
it
could
be
MSCI
acqui
I
am
I.
Now
that's
the
motion
Android
that
I
wanted
to
put
forward.
C
A
F
F
K
K
A
B
C
A
C
The
chair,
if
I,
might
just
ask
before
we
move
from
this
topic,
Bryan
craboo
can
tell
us-
and
maybe
this
is
for
the
next
investment
committee
meeting,
what
they
need
in
terms
of
having
the
flexibility
to
maybe
consider
private
market
deals
opportunistically,
so
it
may
be
for
the
you
know,
they
can
come
back
and
tell
us
what
what
they
need
us.
So
you
know
what
guidance
Vito
in
terms
of
being
able
to
participate
in
those
things.
G
C
A
E
Yes,
Thank
You
mr.
chair
Barbara
or
Linda.
If
you
can
yes,
so
that's
a
presentation,
this
is
really
free,
very
straight
forward.
I'm,
going
to
go
to
slide
number
two.
The
only
difference
between
what
you
see
here
this
morning
and
was
presented
to
you
last
month
was
one
position.
There
was
a
investment
investment
and
politics
information
system,
analyst
position
that
we
have
requested
for
another
year.
That
was
a
limited
date
position.
We
are
now
requesting
to
delete
that
position
which
changes
the
request.
E
The
total
requires
originally
was
six
million
four
hundred
thousand
thirty
five
thousand
dollars
with
the
new
request
that
new
number
is
six
million
three
hundred
and
sixty
eight
thousand,
so
it
also
decreases
the
personnel
aura
from
the
original
1
million
one
hundred
eighty
eight
thousand
to
what
you
see
here
on
slide
two
1/4
million
seventy
one
thousand,
and
if
we
move
to
slide
four
and
five
because
we
were
requesting
in
addition
to
extending
the
ISA,
we
were
requesting
an
additional
position
on
the
investment
side.
Were
total
positions.
Numbers
increased
from
thirty-nine
point.
E
E
So
I
will
request
that
you
bore
the
decreases
that
you
approve
the
new
revised
administrative
budget,
but
before
you
do,
I
just
also
wanted
to
share
with
you
again
I
share
information
with
you
board,
chair
and
bite
share
more
often
that
I'm
ashamed
formation
with
the
full
board,
but
I
also
wanted
to
let
you
know
I.
Think
council
councilmember
also
spoke
about
it.
The
implications
of
the
current
situation
cover
19
on
the
city
budget,
and
so
we
receive
having
freeze
information
from
the
city
and
so
I
just
wanted
to.
E
Let
you
know
that
right
now,
there's
a
hiring
freeze
and
so
I'm
still
moving
forward
with
this
request,
which
is
adding
the
position.
One
position
in
investment
is
the
leading
one
in
the
on
the
information
technology
and
I'm
going
to
move
forward
unless
I
hear
otherwise,
either
from
your
board
from
the
our
mayor's
contact
at
the
mayor's
office.
E
They
have
supported
initially
and
I
still
believe
they
in
support
of
this
approach,
but
I
just
wanted
to
kind
of
let
you
know
that
on
the
side
that
the
city
may
be
requesting
having
that
economic
impact,
they
may
be
requesting
a
few
changes
going
forward,
but
at
this
point,
I
think
is
certainly
reasonable
for
us
to
move
forward
with
this
approach.
With
that
I'm
happy
to
answer
any
questions.
C
A
Thank
You
Roberto
and
staying
on
top
of
the
budget
here
and
bringing
up
the
changes
yeah
and
keep
us
posted.
If
there
is
news
coming
out
from
City
Council
and
if
there
is
a
freeze
where
you
can't
fulfill
those
those
vacancies,
just
keep
us
up
to
date.
Well,
we'll
do
it
Thank
You!
Mr.
chair,
thank
you
alright.
So
that
brings
us
to
for
a
oral
update
from
the
CEO
retirement
services.
Thank.
E
You
mr.
chair,
if
you
bear
with
me
a
couple
of
things,
you
may
be
calling
I
saying
an
email
to
both
boards
a
couple
of
weeks
ago,
kind
of
giving
you
an
update
and
a
status
on
the
the
operations
of
the
office,
and
so
I
wanted
to
share
with
you
the
retiree
payroll
for
March
when
without
a
hiccup,
so
we
actually
made
all
the
payments,
including
a
handful
of
checks
that
we
have
stabbed
at
the
office
for
a
handful
of
retirees
that
actually
come
to
pick
them
up
individually.
E
We
even
deliver
those
so
again
big
kudos
to
stab-
and
let
me
take
this
opportunity
to
say
thank
publicly
the
whole
staff
of
the
office
for
the
the
work
under
efforts
throughout
these
two
weeks
and
I
was
in
the
future
and
really
honestly
their
engagement.
We
have
been
on
top
of
everything
and,
to
that
extent
I
wanted
to
specifically
also
thank
I.
E
Think
the
chair
mentioned
that,
at
the
end
of
the
meeting,
a
military
staff
Linda
Michelle,
amore
Barbara,
were
CEO
and
I
ran
an
IT
manager
for
the
work
that
they
have
done,
making
that
this
meeting
through
soon
happening,
you
may
be
called
that
diffused.
There
was
a
holiday
for
the
city
staff,
but
we
were
having
some
some
meetings
with
trustees,
just
to
make
sure
that
everyone
was
of
the
off
to
the
tasks,
and
this
will
go
without
any
hiccups,
so
I
want
to
especially
thank
the
staff
for
making
this
happening.
E
So
thank
you
very
much,
but
that
said
the
office
is
still
closed.
You
all
know
that
the
the
county
and
the
city
extended
this
they're
shutting
place
through
May
3rd,
which
means
that
at
this
point
at
least
we're
going
to
be
the
main
close
to
May
3rd.
That
will
probably
allow
us
if
anything,
changes
if
we
open
after
that
day,
to
have
your
board
meeting
on
May
7th
at
City
Hall.
But
in
the
event
that
is
not
the
situation.
E
Obviously,
we
will
have
another
meeting
through
zoom
on
main
7
and,
of
course,
in
between,
depending
on
how
the
market
behaves,
we
will
also
call
for
an
emergency
meeting
if
it's
needed
in
closing
I
wanted
to.
Let
you
know
I
will
be
participating
through
zoom.
The
City
Council
meeting
on
April
14
will
be
presenting
the
results
of
the
actuarial
valuation
and
I
also
wanted
to
let
you
know
we
have.
We
are
still
taking
retirement
applications.
E
So
if
there
are
sealing
projects
that
want
to
be
hired
through,
this
process
will
taking
applications
online
and
through
the
phone
so
that
we
can
retire.
Then
I'm
hating
the
we
have
deleted,
except
for
investment
committee
meetings,
we're
not
having
any
more
community
meetings,
including
disability,
but
you
should
know
that
in
the
event
that
we
have
a
financial
hardship
on
a
disability
application,
that
would
be
the
only
case
that
we
will
call
for
a
disability
committee
meeting
in
the
event
that
we
have
the
financial
hardship.
E
We
we
don't
have
any
at
this
point,
and
so
that's
why
we
haven't
have
any
disability
meetings.
Committee
meetings
at
this
point.
Lastly,
obviously
because
of
the
chaton
in
place,
the
working
retirement
working
group
has
reschedule
all
the
meetings,
so
they
no
meeting
in
April
and
you
may
be
called
that
there
was
a
joint
meeting
with
the
City
Council
in
April.
That
also
will
be
rescheduled
to
the
day.
E
A
All
right
we'll
go
ahead
and
move
on,
so
we
got
to
go
backwards.
Just
for
one
moment.
During
the
the
motion
that
Vince
made
on
the
asset
allocation,
we
were
having
some
technical
difficulties
with
the
audio
and
it
came
across
pretty
broken.
We
don't
need
to
go
through
the
vote
again
that
one
passed
a
doe,
but
just
for
the
record
and
I'm
just
gonna
have
Vince
repeat
his
motion
just
to
make
sure
that
we
have
a
clear
recording
on
it.
Vince
you
mind
doing
that.
A
K
A
L
L
We
had
an
extensive,
a
special
City
Council
meeting
yesterday,
you've
already
heard
about
already
mentioned
about
our
budget
concerns,
but
yesterday
we
heard
an
extensive
update,
as
we
do
every
council
meeting
now
on
our
response
to
the
Cova
crisis,
and
one
of
the
things
that
came
up
or
that
was
discussed
is
the
three
challenges
of
now
and
I'll.
Just
break
those
down
into
number
one.
Is
the
health
of
our
community
saving
lives?
L
Number
two
is
the
economic
health
of
our
community,
so
saving
livelihoods,
the
third
it
relates
to
the
city
and
that's
our
fiscal
responsibility
in
preserving
our
fiscal
health.
The
the
shelter
in
place
is
having
a
dramatic
effect
on
our
small
businesses
and
actually
all
of
our
businesses
that
many
small
businesses
like
restaurants
and
entertainment
businesses
they
can't
do
their
job
virtually
restaurants,
are
have
are
closing
and
keeping
very
small
hours
as
we
know,
but
that's
all
for
our
health.
L
Just
yesterday,
we
passed
an
emergency
ordinance
to
be
to
mandate
sick
pay
of
up
to
two
weeks
for
full-time
employees
and
also
a
variation
for
part-time
employees,
and
the
purpose
is
to
encourage
employees
to
stay
home
when
they
are
sick.
So
they
don't
feel
the
need
to
make
the
decision
of
earning
a
paycheck
when
they
are
sick
and
going
to
work
and
thereby
potentially
infecting
others.
L
We
also,
we
know
that
this
virus,
many
of
the
people
who
are
carriers,
do
not
have
any
symptoms,
so
they
they
walk
around
asymptomatic,
believing
that
they
are
completely
healthy
when
they
could
be
carrier.
So
it's
really
really
important
that
the
methods
that
the
county
health
officials
have
put
into
place
that
we
all
honor,
those
and
I
know
I'm
preaching
to
the
choir,
but
I
send
out
newsletters
and
emails
and
and
tweets
and
Instagram
posts
daily
on
how
important
this
is
as
a
result
of
folks,
not
quite
understanding
it
or
maybe
getting
a
little
stir-crazy.
L
L
People
were
playing
tennis
and
you
may
think
well,
there's
no
problem
there,
but
any
ball
that
is
touched
and
sweaty
and
and
might
be
infected
could
infect
other
people,
so
it
seemed
may
seem
draconian,
but
it's
serious
and
we
know
from
the
deaths
that
are
occurring
in
New
York
that
this
is.
This
is
not
a
laughing
matter.
I
don't
mean
to
get
preachy,
but
I
can't
help
it
listening
to
the
financial
impact
and
our
whole
discussion
today.
L
May
it
it's
a
scary
time.
We
have
kids
I
worry
about
my
daughter,
I
know,
Vince
has
a
grandson,
congratulations
or
is
a
daughter.
I
forgot
anyway,
life
goes
on,
but
it's
very
it's
a
very
stressful
time,
so
I'm
proud
that
we
passed
the
emergency
ordinance
on
the
sick
leave
a
couple
weeks
ago.
Actually,
the
city
was
the
forefront
of
passing
a
moratorium
on
evictions
on
April
7
residential
eviction
on
April
7th.
L
We
will
take
up
an
emergency
ordinance
to
impose
a
moratorium
on
commercial
evictions,
so
we
of
our
many
of
our
businesses
are
hitting
the
pause
now,
but
they
aren't
able
to
especially
after
Tuesday's
announcement,
not
able
to
go
to
work.
Construction,
businesses
and
others
have
been
added
to
the
list
of
non-essential
services.
So
all
of
this
will
have
a
long-term
effect
on
our
planet
will
haven't
long-term
effect
on
our
city's
ability
to
go
forward
and,
as
I
said,
we're
in
heading
into
budget
session.
I
have
heard
that
there
is
going
to
be
a
hiring
freeze.
L
A
You
very
much
made
some
great
comments
and
and
I
like
the
priorities
that
you
know
the
City
Council
and
the
3-point
priorities
are
challenged
that
you
guys
are
facing
its.
This
is
on
yeah
it's
unheard
of
times
and
we're
trying
to
figure
this
out
as
we
go
and
it's
impacted
so
many
people
and
we
can
just
hopefully
you
know
as
a
community.
We
stay
healthy
and
and
not
not
spread
the
virus
and
your.
So
your
message
of
staying
home,
staying,
put,
quarantine
yourself
or
you
know,
shelter
in
place-
is
very
important.
A
He
was
chair
of
that
committee
and
then
we
had
as
far
as
vice-chair
so
that
leaves
a
chair
vacancy
and
also
a
spot
on
the
investment
committee
for
another
member
to
come
on
and
in
times
where
the
board
is
having
several
discussions
and
constantly
monitoring
our
portfolio.
This
is
something
that
you
know:
I
wanted
to
get
addressed.
A
So
when
we
last
visited
this
back
in
December,
you
know
there
was
this.
We
were
very
happy
and
fortunate
to
have
two
great.
You
know
candidates
to
become
chair
between
dicus
and
SOR,
and
we
have
been
extremely
happy
with
you
know
with
both
of
them
serving
so
so
at
this
time,
I
would
like
to
ask
if,
as
far
if,
you
would
be
okay
of
stepping
in
becoming
chair
of
the
investment
committee,
yes.
F
A
Thank
you
so
that
still
leaves
us
with
three
people
on
the
on
the
committee
like
to
have
a
fourth
person
on
here,
I'm
open
for
suggestions.
But
my
recommendation
to
see
if
Vince
would
be
willing
to
come
back
on
to
this
committee.
If,
if
it
works
out
for
him,
I'm
not
sure
how
you
feel
about
that
Vince.
A
D
A
No
actually,
there's
one
other
item
that
I
wanted
to
cover
on
here
in
and
then
please
chime
in
here.
I
I
want
I'm
just
observing
that
you're
on
multiple
committees.
Now
that
puts
you
on
the
investment,
the
government,
governance
and
jpc,
and
in
transition
with
Howard
Lee
coming
on
the
board.
I've
always
been
of
the
mind
of
trying
to
phase
in
new
trustees
slowly
so
they're
not
too
overwhelmed
because
I
understand
it
took
me
a
few
years.
They
get,
you
know,
feel
like
I.
A
What
how
do
you
feel
about
the
government's?
Do
you
want
to
come
off
it?
If
you
do,
then
I'll
be
happy
to,
we
could
try
and
get
Howard
Lee
into
that
committee.
They
only
meet
on
a
quarterly
basis,
either
way.
I
was
planted
to
just
try
and
revisit
this
anyways.
You
know
early
summer
to
do
to
get
Howard
back
into
one
of
these
committees.
What
are
your
thoughts,
I.
K
Think
it
would
be
great
to
have
him
step
into
my
place
on
governance.
It's
just
a
matter
of
how
quickly
you
want
to
do
that:
okay,
having
both
joint
personnel
and
investment
committees,
a
lot
of
time,
commitment,
I,
prefer
coming
off,
but
I,
don't
want
to
rush
that,
if
you're
not
ready
to
move
Howard
or
how
it's
not
ready
to
take
that
on
whatever
you
want
all.
A
Right,
thank
you,
Howard.
You
want
to
chime
in
on
here.
How
do
you
feel
about
this?
You
know
I've
spoken
to
you
about.
You
know.
Trying
to
you
know,
ease
you
in
and
to
make
sure
that
you
feel
comfortable
the
government's
committee.
They
they
meet
once
a
quarter,
I
believe
the
next
meetings
not
until
June
and
the
people
are
on
this
committee.
Nick
knew
yo
and
and
Santos.
B
Yes,
thank
you.
Thank
you
for
the
the
comments
I
I,
think
in
the
interests
of
the
urgency
of
the
situation
with
respect
to
investments,
you
know,
I
am
I'm
happy
to
transition
sooner
or
now
to
the
Governance
Committee,
and
as
long
as
I
have
the
help
of
the
folks
there
already
I
think
I
could
hopefully
be
helpful.
A
Great
perfect,
thank
you
very
much
for
being
flexible
in
there,
so
so
in
regards
to
then
voting
on
this,
then.
Basically,
the
changes
that
we
making
is
as
where
I
was
going
to
become
chair
of
the
investment
committee,
Vince
is
going
to
come
on.
As
a
member
of
the
committee
and
Vince
will
come
off,
the
government's
and
Howard
Lee
will
be
joining
the
government.
Governance
can
I,
have
a
motion
for
approval
of
this.
A
A
A
B
B
A
Thank
you
as
Walker
bringing
that
up.
I
definitely
overlooked
that
and
I
apologize
for
that.
That
definitely
puts
my
thoughts.
You
know
it
sort
of
blows
the
idea
of
bringing
him
in
slowly
and
so
I
am
open
for
suggestions
for
from
anybody
out
there
regards
to
the
audit
Franco.
Do
you
have
any
comments
since
your
chair.
A
A
A
A
B
E
E
We
just
have
to
check
with
staff
and
see
how
we
can
not
just
for
you,
but
electricity
is
to
make
sure
that
they're
more
reasonable
right,
because,
for
example,
if
you
joined
the
only
ways
you
will
be
there
and
so
will
be
you
in
the
governance
and
so
he's
thirsty
Muyo.
He
will
also
be
an
audit
and
governance,
so
we'll
certainly
try
to
keep
Danny
mine.
B
E
E
He
was
instrumental
and
I'm
doing
a
lot
of
the
background,
work
and
I'm
finding
options,
and
so
it
took
a
long
time
so
I'm
work
an
effort
from
the
national
Thank
You
Dennis
for
your
hard
work
and
thank
you
for
allowing
the
denied
to
spend
the
time
to
go
through
this
process
and
Prabhu
as
well.
Who
was
very
helpful
to
that
this
process
and
very
excited
to
be
able
to
remain
in
the
common
building
as
well
as
he
has
indicated
to
me
in
the
past.
With
that
said,
I'll
turn
it
over
to
Barbara
I.
B
E
B
A
For
short,
just
brought
to
my
attention,
we
do
have
to
go
back
once
again:
I
apologize
to
the
committee
assignments.
We
did
make
a
motion
and
improved.
You
know
changes
to
the
IC.
We
also
need
to
make
a
motion
and
approve
the
other
changes
of
the
audit
risk
and
we're
gonna
go
ahead
and
put
J
PC
in
there.
So
I'll
make
a
motion
to
approve
the
changes.
The
audit,
where,
as
wire,
will
be
coming
off
and
Howard
Lee
will
be
coming
on.
A
A
E
E
We
did
initiate
word
process
earlier,
as
we
usually
do
every
year,
but
I
think
with
the
Kobe
9
team
and
all
the
challenges
we
didn't
get
hear
back
from
the
insurance
broker
on
time,
and
this
increase
is
actually
eight
point.
Nine
percent,
which
is
actually
beyond
a
five
percent
threshold
that
you
more
had
allowed
us
in
the
past
to
to
sign
up
the
insurance.
So
we're
asking
at
this
time
your
board
to
approve
this
new
insurance
offer
before
I
continue
with
the
comments.
Benjy
I,
you
are
you
there
listening
to
the
meeting.
Yes.
E
You
would
you
correct
me
if
I'm
mistaken
I
believe
that
the
reason
for
the
increase
is
we
are
one
staff.
There
are
two
boards,
but
first
of
all,
we
did
get
all
their
options,
but
there
were
more
expensive
options
than
what
we
are
offering
you
right
now
and
second,
some
of
the
increases
are
related
to
use
sister
plan
or
sibling
plan
who
this
is
going
through
a
process
motivated
right
now,
litigation
on
the
415
so
that
had
an
impact
on
the
plans
as
well
did
I
spend
that
correctly
making
your
comment.
B
Yes,
you
did
both
both
plans
actually
increased
in
premium
and
the
increase
hasn't
happened
for
the
past
five
years.
This
is
the
first
time
or
actually
I'm.
Sorry,
I,
don't
take
that
back.
It
has
been
creased,
but
not
more
than
five
percent
last
year,
that
increase
must
only
1%.
So
this
is
really
the
first.
H
F
E
Yeah
and
I
don't
know
if
counsel,
how
many
comments
but
I
know.
Obviously
they
have
been
a
lot
of
lawsuits
over
the
last
two
years
from
plan
members
right
and
finding
losses
against
the
plan
sponsor
on
the
defined
contribution
side
of
the
equation.
I'm,
not
speaking
about
the
defined
benefit
side
for
the
final
contribution
and
I
wonder,
is
some
of
that
sort
of
calculate
the
defined
benefit.
I
am
the
short.
D
Yeah,
it's
it's
hard
to
tell.
If
it
is
there,
there
has
been
a
spate
of
litigation
on
the
DC
side.
The
only
comment
I
made
I
hadn't
heard
about
the
Federated
increase.
We
should
probably
talk
about
that
offline
because
federated
has
no
exposure
in
that
litigation
at
all.
It's
been
completely
indemnified
by
the
city,
so
that
should
not
be
a
reason
for
an
increase
in
federated
states.
D
B
F
B
B
B
B
E
D
Give
it
another
yes
yeah,
just
to
avoid
confusion
as
I
understand
it.
The
motion
is
to
approve
the
the
next
policy
terms,
as
presented
in
the
memorandum.
Part
of
that
does
include
the
individual
trustees
payment
for
the
waiver
of
recourse
against
them
by
the
insurance
company,
but
the
motion
is
not
just
to
approve
the
waiver
of
recourse
portion
of
the
policies,
but
the
entire
policies
for
the
premium
reported
in
the
memo,
I
believe,
isn't
that.
E
A
A
And
myself
garden,
ear
aye
all
right.
The
motion
passes
eight!
Oh!
Thank
you!
Everybody
all
right!
We
do
not
have
any
retirements
to
report
out
this
time.
So
we're
going
to
item
five
committee
meeting
two
minutes.
I
see
I'll
actually
ask
as
far
if
you
want
to
make
any
comments
as
a
vice
chair
from
last
month
and
now
the
current
chair,
do
you
have
any
comments
you
want
to
make?
It's.
B
Just
a
briefly,
the
thing
that's
been
in
the
works.
The
last
several
times
that
the
committee
has
met
is
the
bringing
into
line
the
documents
between
the
federated
and
the
police
and
fire
retirement
boards,
the
strategic
plans
and
some
various
things
that
they've
been
working
on.
So
we've
been
working
with
Tom
Iannucci.
To
do
that,
my
guess
is
that
within
the
next
one
or
two
meetings
of
the
Governance
Committee
we'll
bring
it
back
to
the
board
for
a
review
and
approval.
E
E
A
B
Roberto
said
there
will
be
going
to
look
like
in
Maui
I
think
that
the
groom
may
have
a
couple
of
comments.
I
think
it's
them.
We
had
a
long
meeting
this
last
one
in
terms
of
causation
and
different
things
that
dr.
chairman
is
looking
for
and
I
think.
Maybe
they
help
to
the
unions,
maybe
roar
for
the
retirement
system.
Maybe
dr.
trimmer
can
actually
write
a
memo
of
some
type
given
different
examples
or
kind
of
clarification
clarifying
some
of
the
issues
that
she's
looking
at
but
she's
been.
B
F
B
A
A
G
You,
mr.
chairman,
just
for
the
record
I
wanted
to
thank
especially
Sir
Jae
Hwan,
we've
made
some
pretty
big
portfolio.
Most
hundreds
of
millions
of
dollars
and
and
I
was
pretty
demanding
those
be
executed,
ASAP
and
he
rose
to
the
occasion,
and
we
made
those
on
three
or
four
different
dates
and
remember
that
we
also
have
a
sister
plan.
G
The
federated
plan,
which
is
also
made
big,
moves
and
and
Chris
who's
a
be
supported
by
Christina
wine
and
and
the
operations
people
often
get
don't
get
notice
or
thanks,
but
I
want
to
thank
Jolie
on
because
you
can
easily
make
errors
when
you
make
these
big
moves
and
touchwood
we've
been
able
to
make
all
those
shifts
without
any
operational
errors.
That
is
all
message
comment.
Thank
you
all.
A
A
They
conducted
several
test
runs
they
set
aside
yesterday
to
have
a
tutorial
and
familiarize
ation
with
trustees
and
I
can't
thank
them
enough
for
all
the
effort
that
they
have
been.
They
have
put
forth
to
make
this
happen.
I
was
happy
his
way.
The
meeting
went
using
a
completely
new
platform.
I
thought
it
was
a
great
success
and
it
could
have
happened
without
them.
So
thank
you
very
much
all
the
staff
for
everything
that
you've
done.
So
it.