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From YouTube: SEP 5, 2019 | Police & Fire Department Retirement Board
Description
San José Police & Fire Department Retirement Board
View Agenda at https://sjrs.legistar.com/View.ashx?M=A&ID=689581&GUID=14716A6B-FFB6-45A9-A50F-96715E51322D
A
They
get
started
to
order
on
the
police
and
fire
retirement
board
meeting
for
September
5th
2019
here
today,
president
our
chair
of
insincere
he's
not
going
to
be
here
today.
He's
gonna
be
absent
myself
and
regard
nearest
president
trustee
jeogori
Artie
is
present.
Trustee
Drew
Lanza's
president
trustee,
as
were
menance
president
Nick
mu
is
present
because
Oswald's
president
Richard
Santos
is
also
president
Frank.
Evaldo
is
going
to
be
here,
he's
just
running
5-10
minutes
late.
A
B
A
B
C
Thank
You
mr.
chairman
I'd,
like
to
before
I
start
I'd
like
to
welcome
Eileen
Neal
from
from
verus
Eileen,
actually
succeeded
ed
Hoffman
as
our
primary
point
of
contact
at
varus
and
has
over
30
years
of
industry
experience
and
prior
to
varus.
That
was
being
at
varus
for
two
years
and
29
years
prior
to
that
at
Wilshire.
C
So
last
month
the
board
had
actually
approved
the
revised
strategic
asset
allocation
and
I
just
wanted
to
give
a
quick
update
on
that.
We
had
decided
to
implement
it
in
two
phases.
If
you
recall,
we
were
going
to
get
to
the
our
risk
target
with
the
first
allocation
and
that
we
were
going
to
add
a
little
bit
more
risk
in
a
second
phase,
so
the
first
phase
was
transferring
5%
of
our
assets
from
Treasury
bills
to
growth
assets
to
actually
equity,
which
we
did
implement
this
past
month.
C
End
3%
went
to
emerging
markets,
2%
meant
to
develop
market
equities,
and
we
actually
have
a
passive
exposure
to
both
asset
classes.
We've
also
started
reducing
our
absolute
return
allocation
from
7%
to
5%,
but
because
are
some
Redemption
rules
around
those
funds?
Right
now,
at
6.3%
and
throughout
the
remainder
of
the
calendar
year,
we
will
be
redeeming
those
those
funds.
C
The
second
phase.
At
the
last
board
meeting,
we
decided
that
we
will
check
with
the
IC
and
seek
the
ISIS
input
on
how
to
implement
phase
2
of
our
strategic
asset
allocation
change
and
the
IC
recommended
that
it
be
done
at
the
discretion
of
the
investment
team,
but
no
later
than
December
31st
and
just
to
remind
everyone
that
was
a
further
three
percent
into
growth
assets.
So
that's
the
update
on
implementing
the
strategic
asset
allocation
with
that
I'm
happy
to
take
questions.
If
any.
E
Good
morning,
thank
you
for
hearing
this
item
ahead
of
the
fee
report.
I
hate
asking
for
money
after
after
talking
about
how
much
money
we
just
spent
this
item
would
normally
be
short,
but
I
just
wanted
to
clear
up
some
of
the
discussion
we
had
at
the
IC.
So
this
this
approval
was
hurt
at
the
IC,
but
we
need
the
approval
of
the
full
board.
So
you
might
remember
that
Ahlborn
is
a
special
specialty
consultant
for
the
plans,
hedge
funds.
They
were
hired
in
2012.
E
So
that's
what
we're
asking
for
here
and
the
larger
context
is
that,
as
probably
noted,
the
absolute
return
program
is
undergoing
some
changes
all
right.
A
few
years
ago,
the
plan
had
over
16%
of
of
assets
and
more
than
a
different
dozen
dozen
different
hedge
funds,
but
both
the
size
and
number
of
hedge
fund
exposure
has
decreased
year
by
year
and
by
the
end
of
this
year,
we
could
be
down
to
down
to
7h
percent.
E
So
what
what
we're
seeking
here
is
authority
to
continue
operating
on
a
month-to-month
basis
for
up
to
a
year
at
the
current
cost
and
the
cost
is
laid
out
in
the
middle
of
the
memo
at
the
IC
I
think
there
was
a
little
bit
of
a
misstatement
on
our
part
framing.
This
has
a
one-year
contract
renewal.
So
there's
it's
we're
not
intending
to
renew
with
all
born
and
sign
a
new
contract
for
a
full
one-year
term.
E
Instead
we're
asking
for
approval
again
to
continue
using
all
one
on
a
month-to-month
basis
for
up
to
a
year
at
the
current
cost
level,
and
remember
it's
a
year
because
we're
looking
to
complete
this
Rionda
writing
process
by
the
end
of
within
the
next
couple
of
months.
At
that
point,
we
should
have
some
picture
of
the
kind
of
program
we
want
and
we'll
know
the
type
and
level
of
resources
we
want
from
a
consultant.
E
Also,
it's
a
we're
looking
for
a
one-year
renewal,
because,
even
if
today,
we
put
in
redemption
notices
across
the
board
for
all
of
the
hedge
funds,
there
would
be,
as
purpose
noted
earlier.
The
redemption
terms
of
the
funds
are
staggered
so
that
it
could
take
a
full
year
to
be
completely
out
of
that
program.
E
E
E
That
was
a
much
more
complicated
project
than
it
is
today,
but
they
produce
a
set
of
monthly
reports
that
include
updates
around
firm
structure,
portfolio
management
staff
processes
at
each
of
the
individual
funds
and
strategies
we
hold
as
well
as
a
little
bit
of
a
summary
around
performance
and
attribution,
and
so
they
do
a
lot
of
I
would
just
call
it.
The
groundwork
involved
with
the.
F
F
F
E
And
I
don't
have
a
lot
of
clarity.
Now
we
haven't
rebate
out
the
contract
right,
that's
not
what
we're
asking
for
so,
certainly
when
the
contract
was
awarded
and
again
we
had
a
larger
portion
of
our
plan
in
hedge
funds
and
a
larger
number
and
diversity
I
think
that
was
very
appropriate
at
the
time
we
did
a
thorough
RFP
at
the
time
we
had
multiple
shortlisted
candidates
and
it
was
if
I
recall
the
pricing
was,
was
kind
of
in
line
with
the
other
participants.
E
If
we
were
to
rebate
it
today-
and
this
goes
back
to
your
earlier
question-
we'd
have
to
take
into
account
what
we
want,
the
new
program
structure
to
be
and
there's
a
wide
range
of
outcomes
for
that.
So,
like
I
said,
and
a
couple
of
months
we'll
have
that
project
completed,
hopefully
and
then
have
kind
of
the
requirements
for
a
new
consultant
laid
out
and
then
we'll
check.
Obviously
what
the
pricing
for
those
requirements
would
be.
G
We
had
a
pretty
long
discussion
around
the
cost
of
this
right,
which
looks
paper.
You
know
quite
quite
substantial,
I
think
what
we
determined
was
that
you
know
with
the
with
the
program
kind
of
good
undergoing
changes
with
you
know,
perhaps
not
as
much
activity
as
there
was
before.
People
had
concern
paying
that
amount,
but
I
think
the
long
and
short
of
it
is
J
and
the
team
are
gonna
revisit
this
in
a
few
months.
G
E
A
B
F
A
F
D
F
Good
morning,
so
we're
here
to
present
the
fourth
annual
fee
report
for
the
calendar
year
2018.
This
is
a
pretty
unique
report
for
pension
plans
in
general
because
it
really
provides
a
transparent
views
of
all
the
fees
that
and
expenses
that
we
paid
to
investment
managers,
as
well
as
the
cost
to
run
our
investment
program,
and
we
can
probably
count
on
a
single
hand
how
many
pension
plans
within
California,
for
example,
actually
produce
such
a
report.
F
Now
that
we've
had
four
years
of
data,
we've
been
able
to
put
together
a
time
series
to
show
how
fees
have
changed
over
time
and
I
want
to
acknowledge
David
who
put
together
the
report
this
year,
as
well
as
the
accompanying
presentation,
which
has
a
graphical
view
of
why
fees
have
changed
over
time
and
how
they
have
changed.
So
if
we
can
turn
to
the
second
attachment,
we
can
get
started.
H
H
Later
in
the
presentation
on
the
rights
we
we
tried
to
kind
of
you
know,
take
a
look
at
the
universe
in
terms
of
peer
comparisons
and
like
Dinesh
mentioned,
this
data
is
very
difficult
to
come
by
the
the
one
source
that
that
would
we
look
at
here
is:
you
know,
reported
fees
from
the
kafirs
and
just
a
caveat
here:
kafir
fees,
primarily
just
management,
invoice
management
fees.
So
there's
a
lot
of
things
not
captured,
such
as
management
fees
that
are
charged
directly
to
the
fund,
as
is
common
in
a
lot
of
private
strategies.
H
So
the
main
takeaway
here
is,
you
can
see
I.
Think
ORS
in
the
red
bubble
is
kind
of.
You
know
middle
middle
of
the
road,
and
you
know
that's
kind
of
you
know
what
we
expect
so
flipping
over
to
the
next
page,
I'm,
just
taking
that
2017-2018
Delta
and
putting
a
dollar
number
on
it.
The
18
basis
points
represents
a
three
point:
four
million
dollars,
saving
in
fees
paid
to
the
plan.
H
Flipping
over
the
next
page
just
wanted
to
kind
of
highlight
this
point
a
little
bit.
How
kind
of
fees
are
function
of
asset
allocation
mainly
and
you
asked
allocation-
is
primarily
determined
by
you
know.
You
find
folks
over
here,
but
you
know
that
being
said,
the
investment
staff
definitely
has
levers
to
pull,
give
it
a
full
given
asset
allocation
and
try
to
highlight
a
couple
things
that
you
know
we
can.
You
know,
increase
fee
deficiencies
such
as
within
a
given
asset
class.
H
H
Similarly,
fun
types,
you
know
ideally
I,
think
you'd
like
to
be
in
a
separate
account,
lower
fees,
highest
control,
but
in
some
cases
it's
just
not
possible
fee
structure.
You
know
you
can
try
and
maximize
the
efficiency
by
thinking
about
the
fee
structure.
In
terms
of
you
know,
in
some
cases
you
can
negotiate
a
lower
management
fee
with
a
performance
fee.
That's
capped
also.
You
know,
I
think
this.
H
We've
also
been
able
to
negotiate
management
fees
down,
I
believe
earlier
this
year.
You
know
a
prime
example
is
in
real
estate
space,
where
you
know,
Dinesh
was
able
to
get
the
fees,
management
fees
dramatically
lower
on
a
new
investment
and,
and
one
of
the
last
levers
is
liquidity
in
size
terms.
I
think
you
know.
In
some
cases
you
can,
you
can
get
no
fees
agreed
to
lower
management
fees
by
agreeing
to
less
liquidity
or
longer
lockup,
so
yeah,
so
so,
just
just
again
highlighting
fees,
our
function
primarily
a
function
of
asset
allocation.
H
However,
you
know
there
are
levers
with
which
you
know
we
can
pull
to
increase
the
efficiency
there.
So
next
page,
so
just
dig
into
the
numbers
a
little
bit
right.
I
think.
The
main
point
that
we
wanted
to
get
across
is
control
what
we
can
control
and
that's
focusing
on
management
fees.
You
know
you
know
how
much
you're
gonna
pay.
Given
you
know
the
strategy
of
the
managers
you
hire,
so
you
can
see.
I
mean
we've
done
a
good
job
in
reducing
management
fees
over
the
last
three
years.
H
So
here
we
want
to,
you,
know,
look
at
what's
driving
the
management
fees
and
then
the
chart
on
the
right
we've
kind
of
lumped
everything.
That's
not
passive
and
called
it
active
private
hedged
as
well.
As
you
know,
kind
of
long
homie
strategies-
and
you
know
it
clearly
shows
that
most
of
the
management
fees
clearly
come
from
what
we
call.
What
we're
lumping
is
active
and-
and
one
of
the
key
drivers
of
why
the
this
management
fee
contribution
from
actives
has
come
down,
is
just
less
allocation
to
active
strategies.
H
Passive
weight
has
gone
from
26
to
37
percent
over
the
last
year.
A
big
part
of
that
actually
is
driven
by
kind
of
that
strategic
asset
allocation
shift
that
we
made
in
October
when
we
went
to
a
lot
of,
especially
in
the
fixed
income
realm
when
we
went
to
a
lot
of
when
we
massively
increased
our
allocation
to
short
term
bonds
passively.
H
So
next
page
here
we
take
a
look
at
kind
of
components
of
active,
active
management
fees,
and
you
can
see
a
big
portion
is
driven
by
private
as
well
as
hedged
and
we've
done
a
and
you
can
see
the
the
decline
in
the
contribution
from
hedged,
particularly
and
that's
a
result
of
a
decrease
in
allocation,
as
well
as
the
actual
reduction
in
the
management
fee
ratio.
As
we
terminated
a
couple
of
absolute
return,
managers
flipping
over
so
kind
of
last
slide.
H
Here
is
again,
you
know
looking
at
focusing
on
kind
of
what
we
call
the
hedge
strategies
and,
seeing
now
that
you
know,
we've
dramatically
reduced
allocation
to
hedge
strategies.
You
know
completely
eliminating
them
or
from
the
fixed
income
bucket
and-
and
you
know,
primarily
just
fixed
income
bucket,
as
well
as
the
real
assets.
They've
gone
up
a
little
bit
in
absolute
return,
but
as
Prabhu
was
highlighting,
you
know
this
is
gonna,
go
down
to
in
the
5%
range
and
also
from
a
global
equity
perspective.
H
I
think
we
are
in
the
process,
if
not
completed,
getting
rid
of
all
the
hedge
strategies
in
our
global
equity
bucket.
So
those
things
from
buying
should
you
know,
help
bring
down
the
fee
management
ratio
next
year.
We
kind
of
you
know
kind
of
very
back-of-the-envelope
estimation
of
sixty-five
basis
points
full
of
management
fees,
which
we
think
should
be
in
the
vicinity
of
you
know
kind
of
a
long-term
goal
for
management
fees
with
that
done
with
this
presentation,
but
open
to
any
questions
regarding
the
either
this
one
or
the
logic
yeah.
I
H
F
I
Because
it
is
too
hard
to
prepare
that
chart,
could
you
bring
it
back?
Maybe
the
next
meeting
or
something
because
but
yeah
I
if
I
were
the
City
Council
I
would
look
at
this
and
say
well,
you're
not
doing
really
well
on
fees
right,
but
if,
in
fact,
there's
a
high
correlation
between
size
of
check,
we're
pretty
we're
pretty
tiny
I'd.
Just
just
while
you
were
talking
and
I
quickly
looked
up
a
Sarah
and
see
Sarah
and
they're
both
near
10
billion
right.
F
H
Definitely
the
larger.
You
are
the
more
economy
of
scale
you
have
right,
but
again
also
it's
a
function
of
asset
allocation
right
as
it
pertains
to
pensions,
I.
Think
San
Jose
is
a
little
bit
more
weight
in
private
strategies,
which
tend
to
be
more
expensive.
So
then
you
know
the
question
of
hey
we're
not
doing
as
well,
given
our
size,
it's
more
from
a
fee
perspective
right
and
clearly
we're
not
managing
just
to
minimize
fees,
but
managing
to
you
know,
get
the
best
risk.
Adjusted
net
returns
right.
G
C
C
I
Let
me
just
tell
me
real
quick
just
finish
that
off
so
totally
get
what
you're
saying
and
be
very
still
to
the
chart
and
and
pull
out
those
outliers.
We
might
be
an
outlier,
we
might
say
yeah,
because
we
sort
of
have
this
novel
thing
we're
doing,
which
requires
more
fees.
Somebody
else
might
be
in
the
opposite
might
say:
man,
they
just
pretty
much,
invest
in
an
index
funds
and
I
select
them
themselves.
I
So
III
know
this
is
not
all
the
marcasite
meant
that
Danny
wants
to
spend
a
lot
of
time
on,
but
it
might
be
very
instructive,
not
so
much
I,
think
for
us,
but
for
the
city
whose
fees
fees
as
evil,
and
so
two
things,
one
is
show
them
how
fees
work
and
that's
economies
of
scale.
The
other
one
is
show
them
that
different
people
have
different
strategies
to
take
advantage
of
fees
and
then
to
minimize
fees.
F
J
K
Let
me
add
today:
first
of
all,
I
can't
emphasize
you
know
what
David
just
reported
this
morning,
which
the
total
fee
is
going
to
be
mostly
directly
related
to
the.
So
that's
that's
given
I
think
Prabhu
statements
about
economies
of
scale
and
bringing
staff
in-house
makes
a
it's
another
good
comment.
It
makes
a
lot
of
sense,
but
I
want
to
touch
on
you
last
time
and
trustee
Lanza,
because
that
is
part
of
the
I.
K
Don't
want
to
call
it
hidden
message
here
in
this
table,
but
you're
right
I've
been
trying
for
years
now
to
make
a
point.
Yes,
you
know
we
have
whatever
2018
one
point
twenty
two
percent,
but
that's
because
we
do
an
excellent
job,
it's
being
very
transparent
about
reporting
the
fees.
The
story
here
is,
if
you
look
at
the
kafir'
now,
understanding
that
asset
allocation
will
lead
that
you
know
total
fees.
I.
K
Can
you
know,
ask
questions
and
indicate
that
we
may
be
expensive,
but
but
but
it's
important
to
understand
that
we
cannot
compare
the
comprehensive
free
report
that
we
produce
with
the
car
information
for
our
peers,
because
that
would
not
be
apples
to
up.
So
thank
you
for
taking
the
time
and
providing
that
kind
of
information
to
the
to.
H
Presenting
to
the
City
Council
I
mean:
is
it
worth
just
highlighting
or
stressing
management
fees
so
that
that
gets
us
closer
to
the
kafir'
numbers
right,
because
incentive
fees
are
what
they
are
right,
I
mean
if
our
private
equity
strategies
blow
off
the
water,
you
incentive
you
inherently
payment
incentive
fees,
which
is
not
necessarily
so
it's
like.
You
know
back
to
the
we're
gonna
control,
what
we
can
control
and
that's
why
focusing
on
management
fees
in
in
any
presentation,
maybe
might
be
the
way
to
go.
Yeah.
H
I
I
Globally
act
locally,
things
sort
of
great
absolute
versus
great
on
a
curve
yeah,
everybody
pays
fees,
okay,
so
too
bad
right.
If
you're,
if
you
are
don't
like
that
aspect
of
capitalism,
I'm
listening
right
now,
the
question
is:
how
are
we
doing
relative
to
our
peers?
That's
a
great
honor
on
a
curve
right,
what's
to
think
locally
I
think
we
have
a
good
story
to
tell
there,
which
is
what
you're
saying
I
agree
on
them.
So
maybe.
K
G
A
question
when,
when
you
have
the
lever
to
reduce
the
fees
in
control,
do
you
do
that
only
when
there's
an
event
as
in
re
up
in
a
fund,
or
can
you
do
that
midstream
and
say
hey?
We
need
to
have
some
discussions
here
or
it.
There
has
to
be
an
event
that
they're
raising
a
new
fund,
or
there
is
some
some
existential
crisis
that
calls
a
renegotiation.
We.
G
C
If
there
is
an
existing
manager-
and
we
have
a
certain
arrangement-
we've
actually
done
that
with
Makeda
before
we've
actually
gone
to
an
existing
manager,
who's
actually
produced
good
results
and
we
want
to
continue
with
that
manager,
but
we
went
back
and
renegotiated
the
fees.
So
we
can't
do
that
midstream,
but
you
know
changing
managers
also
gives
us
an
opportunity
to
go
back
and
say
our
philosophy
is,
we
prefer
base
fee
and
performance
fee
and
we
look
for
managers
with
those
characteristics.
F
G
L
K
F
K
D
Good
morning,
thank
you
for
having
me.
We
always
appreciate
having
the
opportunity
each
quarter
to
present
and
give
you
a
quick
update
on
how
everything
is
looking
in
the
program.
Hopefully
you
have
the
presentation
in
front
of
you:
I
will
just
hit
some
highlights.
I
won't
touch
on
every
page,
but
kind
of
give
you
the
overview
summary.
D
So
turning
to
the
first
page,
this
is
a
quick
summary
of
the
private
equity
program
in
total,
showing
both
the
legacy
commitments
and
now
the
Neuberger
portfolio
in
partnership
with
San
Jose
and
then
kind
of
the
total
investment.
The
one,
the
one
thing
I
think
is
the
big
takeaway
from
this
page,
since
we
are
only
a
little
bit
over
two
years
into
the
program.
D
The
most
notable
item
is
that
we
are
continuing
commitments
and
we
are
exactly
on
pace
for
what
we
have
planned.
So
this
is
the
q1
update.
So
over
that
quarter
we
made
two
additional
primary
investments.
So
now
we
have
a
total
of
sixteen
primary
investments
within
the
Neuberger
portfolio
and
we
made
two
additional
co-investment,
so
we
went
from
fifteen
co-investments
to
seventeen
as
of
the
end
of
the
first
quarter.
The
portfolio
continues
to
develop
so
with
commitments.
D
Moving
on
to
the
next
few
pages,
these
are
benchmarks
pages
that
we've
provided
and
they
are
at
an
underlying
fund
level.
So
these
are
the
actual
funds
in
the
legacy
portfolio
and
how
they
are
comparing
via
the
appropriate
benchmark.
So,
looking
at
both
IRR
and
the
multiple
of
invested
capital,
you
can
see
the
legacy
investments
on
both
pages
two
and
pages
three.
D
Five
and
six
are
a
good
overview
of
just
the
diversification
within
the
portfolio
by
vintage
year.
You'll
see
page
five
is
by
commitment
and
page
six
is
by
the
actual
net
asset
value
of
the
investment
again
on
the
new
Berger's
died
early
and
I.
Think
what
is
most
notable
here
is
just
the
fact
that
we
are
continuing
the
diversification
by
vintage
year
and
making
sure
that
the
plan
is
investing
across
years.
D
The
next
few
pages
go
through
performance
and
a
little
bit
more
detailed
view
by
asset
class
and
then
also
by
investment
type
I'll.
Take
you
to
page
9,
because
I
think
this
highlights
a
little
bit
of
where
early
returns
are
coming
from
within
the
Neuberger
portfolio.
So
you
can
see
on
page
nine.
This
shows
the
multiple
of
invested
capital
returns
as
of
q1,
and
you
see
the
secondary
is
at
1.4
times
and
the
co
investments
are
at
one
point
one
seven
times
and
that's
exactly
what
we
would
expect
early
on
in
performance.
D
We
would
expect
those
two
investment
types
to
kind
of
drive
that
early
performance
in
the
portfolio.
So
we're
happy
to
see
that
that's
actually
the
case
here
and
then
I'll.
Just
take
you
to
the
last
few
pages.
Page
13
and
14
is
a
very
detailed
view
of
all
of
the
investments
you
can
see.
The
capital
that's
been
deployed,
how
much
unfunded
there
is
at
the
moment
and
then
on
the
very
last
page.
You
do
see
the
growth
IRR
and
multiples
for
the
legacy,
investments,
Neuberger
and
then
a
total
of
the
entire
portfolio.
D
D
Yeah
on
this
one,
so
this
fund,
specifically
as
a
q1,
they
had
one
investment
that
was
that
was
being
held
at
cost.
They
also
hadn't
called
capital
from
on
that
transaction.
They
were
using
a
capital
call
facility.
So
really
what
you're
just
seeing
here
is
a
combination
of
there's,
not
a
lot
of
capital
called
it's
very
early
and
there
hasn't
been
any
write
ups
in
that
one
portfolio
company
as
of
now
and
of
course,
that
you
know
there
are
some
management
fees
in
there.
D
Is
correct,
yeah
they're,
definitely
J
curve
effect
going
on
here,
and
that
is
simply
to
mean
that
the
investments
in
the
portfolio
are
held
at
cost
because,
there's
you
know
they've
been
made
within
a
very
short
time
period.
There's
no
reason
to
write
them
up,
and
so
a
combination
of
a
portfolio
held
at
cost
and
some
early
management
fees
and
expenses
unfortunately
lead
to
the
J
curve.
And
that
is
one
reason
why
we
like
to
put
Co
investments
and
second
bearing
into
the
portfolio,
because
it
does
help
to
mitigate
that
on
an
overall
basis.
A
A
A
M
Doing
well
so
does
everyone
have
me
quarterly
review,
I'll
start
out
with
world
markets
on
page
four,
just
to
provide
the
backdrop
for
performance
for
the
second
quarter.
It
was
a
really
strong
quarter
and
the
US
Federal,
Reserve
and
also
central
banks
around
the
world,
were
signaling
that
they
were
open
to
more
easy
and
during
the
second
quarter,
and
that
led
to
a
lot
of
markets
hitting
record
highs.
Energy
did
decline.
M
You
see
the
Bloomberg
commodity
index
was
the
only
negative
major
asset
class
during
the
second
quarter
and
since
the
end
of
the
second
quarter,
since
June
we've
had
more
exciting
markets
again,
you've
had
a
lot
of
continuing
global
trade
tensions
with
tariffs,
conversations
breaking
down
Treasuries
rallied
quite
a
bit.
The
yield
curve
has
been
inverting
a
couple
of
times
once
again
on
Friday
and
which
can
be
pretend
recession
in
the
future.
China
also
devalued
their
currency
and
and
cut
down
an
eliminated
US
agricultural
import.
So
we've
had
ongoing
trade
concerns.
M
Since
the
end
of
the
second
quarter,
you
did
see
the
US
Federal
Reserve
cutting
rates
by
25
basis,
points
on
July,
31st
and
the
market
implied
probability
of
a
rate
cut
in
September
is
at
100
percent.
So
certainly
a
lot
of
expectations
for
further
easing.
We've
had
a
lot
of
news
coming
out
of
brexit.
Recently
there's
been
increasing
discord.
M
M
So
and
that's
that's,
causing
an
increasing
news
headlines.
That
said
the
past
few
days,
many
folks
think
that
trade
chart
tops
are
improving
and
there's
been
an
announcement
that
there
will
be
new
negotiations
in
October
in
Washington
between
the
US
and
China.
So
the
past
several
days
have
been
really
strong
for
markets.
M
In
fact,
I
had
written
down
what
the
quarter
to
date
since
June
30th
returns
were
as
of
two
days
ago
and
then
needed
to
update
those,
because
yesterday
was
such
a
positive
day
in
the
markets,
and
so
we're
now
looking
at,
in
particular,
fixed
income.
Having
done
quite
well
REITs,
which
are
driven
by
many
of
the
same
factors
of
fixed
income,
have
done
well,
and
you
see
the
sp500
about
flat
for
the
quarter
to
date.
M
Now,
since
the
end
of
June,
which
is
also
what
we'd
predict
for
your
fund,
there
was
a
positive
return
for
your
fund,
your
pension
fund,
our
estimate
in
July,
a
negative
return
in
August
and
then
a
positive
return
in
the
first
several
days
of
September.
So
we
see
a
fiscal
year-to-date
return
right
now
of
about
flat,
which
of
course
is
not
not
a
good
thing.
But
given
the
global
market
headlines
that
we've
seen
since
June
30th
is
is
better
than
couldn't
have
been
happy.
M
So
we
have
a
lot
of
other
market
data
slides
as
usual,
but
I'm
happy
to
take
questions
on
feel
free
to
pursue
or
peruse
at
your
at
your
leisure
but
I'll
skip
ahead.
You
know
that
we
have
the
watch
list
in
here.
Nothing
new
to
note.
You
know
we
put
managers
on
the
watch
list
when
they're
underperforming
and
that
gives
us
and
staff
a
sort
of
a
nudge
to
continue
to
monitor
them,
which
we
are
doing
and
but
I'll
skip
ahead
to
your
funds,
specific
performance.
M
M
Taking
a
look
at
performance
starting
on
page
23,
the
total
fund
performance
was
2.7
percent
during
the
second
quarter.
That
was
outperforming
the
policy
benchmark
the
investable
benchmark
portfolio
and
also
the
low-cost
passive
portfolio.
It
was
behind
a
60/40
blend
of
global
equities
and
bonds
and
fell
in
the
third
quartile
of
the
pure
universe.
Looking
at
the
fiscal
year,
the
full
fiscal
year
return
was
4.3
percent
slightly
behind
the
policy
benchmark
ahead
of
the
investable
benchmark
portfolio
and
also
in
the
third
quartile
of
the
peer
universe.
M
Nearly
every
asset
class
outperformed
its
respective
benchmark
during
the
second
quarter,
and
we
also
saw
really
strong
returns
from
your
active
managers.
I
know
that
that
was
part
of
the
discussion
in
the
fee
report
was
active
versus
passive.
We
have
worked
with
staff
and
staff
has
worked
hard
to
concentrate
your
active
assets
in
managers
that
are
actually
having
you
know
a
good
chance
about
performing,
and
that
has
been
the
case,
and
so
individual
manager
performance
starts
on
page
27.
M
M
Artisan
global
opportunities,
in
particular,
is
in
the
top
decile
of
the
peer
group,
since
you
hired
them
in
2013.
It's
a
very
strong,
persistent
out
performance
on
page
28.
You
can
see
their
performance
for
the
quarter
was
in
the
12th
percentile
of
their
peer
group
of
6.2
percent
relative
to
4.9
for
their
benchmark.
This
is
a
relatively
concentrated
portfolio,
or
stock
selection
is
going
to
influence
the
out
performance.
They
had
some
good
investments
in
the
technology
industry,
particularly
around
digital
payments,
and
that
performed
well
during
the
second
quarter.
M
They've
done
so
well
recently,
with
a
return
of
20%
for
the
year-to-date
period.
That
now
you
know
nearly
all
of
their
trailing
time
period.
Pier
rankings
are
in
the
top
decile,
so
it
just
shows
you
know
this
is
a
relatively
concentrated
portfolio
or
just
a
few
stocks
really
drive
the
returns,
and
it
was
a
good
decision
on
staff's
part
to
to
recommend
holding
on
to
this
manager.
They've
outperformed
by
14
and
a
half
percent
for
the
fiscal
year
period.
M
Again
concentrated
portfolio,
they
had
some
insurance
company
exposure
that
did
that
did
quite
well
recently
I'm
flipping
to
the
next
slide
under
emerging
markets
equity.
This
was
another
bright
spot
in
terms
of
out
performance
recently
for
the
quarter
and
year
to
date,
period
gqg,
global,
emerging
markets.
This
is
a
good
story,
a
man
where
someone's
fun
out
of
another
shop
was,
it
was
sort
of
an
emerging
manager.
M
We
were
able
to
negotiate
a
really
really
attractive
fee
and
and
sort
of
there
was
a
bit
of
risk
involved
with
with
backing
someone
who
just
spun
out
of
another
shop,
but
we
did
a
lot
of
a
lot
of
work
on
them,
along
with
staff
and
and
believed
in
the
infrastructure
and
and
this
shop
in
particular.
Now
they
have
they've
gained
enough
assets
that
they're
looking
at
closing
the
product
very
soon
and
you
can
see
gqg
was
in
the
first
percentile
of
their
peer
group.
M
So
the
top
one
percent,
with
a
return
of
six
point:
seven
relative
to
zero
point,
six
for
the
emerging
markets
benchmark
since
inception,
they've
more
than
doubled
the
emerging
markets
benchmark
since
you
hired
them
in
July
of
2017.
Another
bright
spot
for
active
management
was
marketable
alternative
equity
on
page
30.
M
You
know,
as
I
mentioned,
US
equities
were
a
18
percent
year-to-date.
A
marketable
alternative
was
only
up
nine
percent
year-to-date.
So
there
was
a
big
difference
in
how
those
asset
classes
performed.
But
if
you
look
at
your
specific
managers,
double
the
benchmark
for
the
quarter
and
many
times
the
benchmark
for
the
fiscal
year,
so
market
of
alternative
was
at
2.6
percent.
Relative
is
0.3
for
their
benchmark.
M
So
you
can
see
insight
was
funded
with
around
180
million
dollars
during
June
and
as
always,
we
have
a
variety
of
other
types
of
exhibits
throughout
this
report.
I'll
skip
to
page
44
just
to
look
at
attribution
for
the
three-month
period,
as
I
mentioned
manager.
Selection
in
particular,
was
very
positive
during
the
quarter
and
was
the
main
cause
of
our
performance
relative
to
your
benchmarks
for
June
at
the
quarter
ending
June,
we
look
at
different
time
periods
as
well,
and
then
something
else
that
I
wanted
to
highlight
is
on
page
50.
M
As
you
know,
your
fund
takes
less
risk
than
than
many
pure
funds.
So,
taking
a
look
at
page
50,
you
can
see
that
the
total
fund
return
of
4.3%
was
below
the
universe,
medium
return
of
5.4.
If
you
look
at
an
annualized
standard
deviation,
the
total
fund
standard
deviation
of
7.1
for
the
trailing
year
was
below
the
Pier
median
of
8.8.
M
So
the
individual
asset
allocation
and
performance
for
the
healthcare
trust
starts
on
page
20
and
the
total
value
of
the
fund,
as
of
the
end
of
June,
was
148
million.
It
was
up
about
three
million
dollars
from
the
end
of
March,
despite
net
cash,
outflows
of
0.1
million,
and
you
can
see
that
the
allocations
are
currently
very
close
to
their
policy
targets.
M
Taking
a
look
at
performance,
you
can
see
that
for
the
quarter
period
and
the
health
care
trusts
performance
was
directly
in
line
of
its
policy
benchmark
and
for
the
fiscal
year
period
the
return
was
4.8%
slightly
outperforming
the
fiscal
year
benchmark.
As
you
know,
your
health
care
trust
return
targets
the
same
the
same
actuarial,
assumed
rate
of
return
as
the
pension,
which
is
a
bit
unique.
Many
healthcare
funds
are
more
conservatively
structured,
so,
typically
in
upmarket
environments,
this
fund
will
look
very
good
relative
to
peers.
M
If
you
look
at
the
year-to-date
period,
the
healthcare
trust
was
up
ten
point,
six
percent,
which
trailed
the
policy
benchmark,
but
was
in
the
top
quartile
of
the
peer
group
and
that's
just
a
function
of
being
a
bit
more
aggressively
positioned,
which
was
a
good
thing
for
the
year-to-date
period
in
2019
and
all
of
your
asset
classes
in
this
portfolio,
with
the
exception
of
commodities
outperform
for
the
quarter
to
date,
period,
we've
seen
as
I
mentioned,
really
strong
returns
in
many
asset
classes.
Year-To-Date,
and
this
healthcare
trust
has
the
same.
M
F
M
M
A
All
right
we'll
go
ahead
and
do
then
good
start
with
old
business.
Go
to
three
a
discussion,
action
or
request
from
POA
regarding
conducting
an
actuarial
study
to
determine
the
impact
of
eliminating
the
remarriage
provision.
Understand
is
a
miserable
Code.
Three
point:
three,
six
one:
two:
zero
zero.
K
K
It
specifically
asking
you
bore
some
questions
and
request
to
issue
a
solution,
and
then
you
also
have
before
you
the
letters
from
the
POA
actually
asking
for
this
story
to
be
completed
and,
finally,
the
actual
analysis
by
Chiron,
in
which
I
think,
if
you
go
to
the
the
last
page
said
three
page
analysis.
I
think,
generally
speaking,
indicates
that
a
change
in
the
language
of
this
particular
situation
would
not
be
so
on
an
increase
on
the
plan.
But
with
that
said,
I'll
turn
it
over
to
Jennifer.
J
Jennifer
Schembri,
director
of
human
resources
and
employee
relations.
So,
as
Roberto
said,
we
had
requested
that
Chiron
do
an
analysis
on
this
to
determine
whether
or
not
there
was
a
cost
to
making
this
change
and
they've
come
back
and
said
that
there
is
no
cost,
and
that
is
because
of
the
city
charter
provision
where
we
can't
do
any
sort
of
benefit
enhancements
without
going
to
a
vote
of
the
people.
So
because
there's
no
cost.
J
N
N
Obviously,
this
board
reviews
the
you
know
code
changes
to
raise
issues
when
it
sees
it
when
we
got
involved
in
harmonizing
the
new
tier
to
you,
I
actually
worked
with
the
bargaining
units
in
the
city
to
help
make
sure
that
the
the
code
was
written,
a
way
that
could
be
administered
reasonably
in
this
particular
instance,
I
mean
fundamentally
with
the
I
think.
The
reason
the
city
asked
for
this
is
that
they
have
a
charter
provision
that
says
there
isn't
there
shall
be
no
enhancements
of
defined
retirement
benefits
as
of
January
1st
2017
without
voter
approved.
N
That's
that's
why
they
commissioned
this
I
would
advise
the
board
that
I
don't
think
this
board
should
have
an
opinion
one
way
or
the
other
about
whether
that
provision
has
been
met
or
not.
I,
don't
think
it's
this
board's
function
to
decide
what
is
in
a
benefit
enhancement.
What
is
not?
Okay,
now,
having
said
that,
we've
conducted
we've
gotten
the
analysis
from
chiron,
as
requested
by
the
city,
and
the
analysis
speaks
for
itself.
N
So,
if
you
know
the
city
now
has
that
analysis
and
to
the
extent
that
it
that
it
wants
to
use
that
analysis,
whatever
is
going
to
do
nest.
That's
perfectly
fine
and
to
the
extent
that
this
board
wants
to
acknowledge
that
it's
received
and
that
it
requested
the
analysis
it
got
what
it
received,
and
it
says
what
it
says:
I'm.
Certainly
the
board
can
do
that
or
the
board
can
go
further.
The
board
can
say
whatever
it
wants
to
say
about
the
analysis.
N
I
mean
I
personally,
think
that
the
benefit
enhancement
question
is
almost
a
philosophical
issue
here,
because
we're
doing
a
cost
analysis
that
turns
on
incentives,
you'll
see
from
the
actuaries
report
that
the
reason
they're
saying
that
they
don't
really
see
an
increase
in
cost
is
because
right
now
nobody's
getting
remarried,
because
that,
because
there's
such
a
financial
disincentive
to
do
that,
so
that's
one
thing.
The
other
thing
is:
is
it
a
benefit
enhancement?
Well,
some
people
can
get
remarried
and
keep
their
benefits
when
they
couldn't
use
to
I.
N
Don't
know
it's
almost
a
philosophical
question
and
I:
don't
really
I.
Don't
really
think
it's
this
board's
function
to
to
answer
that
question:
I,
don't
I,
don't
think
the
city
is
necessarily
asking
you
to
answer
that
question.
I
just
want
to
make
clear
that
whatever
you
do
today,
it's
not
interpreted,
as
you
know,
blessing
this
under
the
Constitution.
N
L
I
think
that's
really
what
we're
all
looking
for
is
just
to
accept
the
report
yeah
because
of
the
technicality
of
going
to
the
voters.
We
just
and
I
get
what
you're
saying
it's:
it's
absolute.
No
one's
gonna
get
remarried
as
long
as
the
penalty
stays
in
place,
but
if
today
someone
got
remarried-
and
tomorrow
we
put
this
in
well
now
it's
a
benefit
increase
because
now
has
a
cost,
but
no
one's
gonna.
L
J
Yeah
and
then
so
we
are
looking,
though,
for
unit
dot
adopt
a
resolution.
So
if
you're
adopting
a
resolution,
accepting
the
report-
I
guess
that's
fine,
but
I
think
that
that's
something
that
the
City
Attorney's
Office
is
looking
for,
like
a
formal
action
by
the
board
in
case
there's
a
question
later,
yeah.
N
And
I
and
I
think
I
think
if
the
board
wants
to
adopt
a
resolution,
accepting
the
report
I
think
that's
perfectly
fine.
I
I
want
to
be
clear:
I'm
not
I'm,
not
saying
that
that's
a
problem
I
just
wanted
to
make
sure
that
it's
understood
that
I,
don't
think
this
board
should
have
an
opinion
about
what
does
and
does
not
constitute
a
benefit
enhancement.
That's
all
well.
I
So
before
I
all
go
ahead,
make
the
motion
in
just
a
minute.
So
is
there
anyone
around
this
table
that
thinks
that
the
basic
conclusion
I'm
the
finger
just
talked
about
in
the
report
for
the
actuaries,
pretty
sound,
there's
a
huge
penalty
to
giving
up
on
that
benefit,
and
so
most
people
don't
as
anybody
in
question,
that's
a
basic
human
nature.
I,
you
don't
know
you're.
Quite
your
question.
N
Yes,
I
just
make
sense
right,
I.
Think
the
report
said:
there's
only
been
one
instance
where
it
happened,
I
don't
know
if
it's
referring,
we
actually
had
of
litigation
over
this.
This
is
called
the
Jordan
claims
five
six
years
ago
we
won
the
case,
but
it
was
somebody
who
was
claiming
that
they
shouldn't
have
lost
their
benefits
when
they
remarried.
So
it
did
happen
once
no.
D
N
K
F
K
N
N
I
just
raised
the
concept
because
whether
you're
police
or
fire
I'm
just
saying
it
happened
at
least
once
you
know
that
particular
member
was
not
happy
that
it
happened,
and
you
know
we
could
argue
all
day
about
the
level
of
knowledge
we
won
the
case.
I
won't
get
into
all
the
various
reasons.
We
won
the
case
very
quickly
very
easily,
but
but
it
happened
in
that
case.
Will
it
ever
happen
again?
N
B
A
Sure
that
the
board
doesn't
advocate
for
a
you
know
one
side
of
a
benefit
or
another:
that's
not
our
job,
but
just
accepting
the
report
from
Chiron.
It's
it's
not
it's
not
saying
one
way
or
the
other,
but
we're
just
accepting
the
facts
and
that's
it.
So
that's
why
I
feel
comfortable
with
the
motion.
Yeah.
A
N
K
F
A
J
So
we
are,
we
would
like
to
we
do
the
RFP
for
the
disability
medical
panel
and
have
it
run
by
within
our
human
resources
and
employee
relations
department,
in
coordination
with
the
office
of
retirement
services.
I
know
you
guys
have
gone
out
a
couple
times
and
haven't
had
any
luck
and
just
to
be
frank
about
the
issue.
This
is
language
that
I
negotiated,
feel
personally
responsible
for
and
if
I
have
to
go
back
to
the
council
and
say
that
we
it's
failed,
we
can't
do
it.
J
I
want
to
make
sure
that
we've
done
everything
that
we
can
to
make
sure
that
it
would
be
successful
and
so
and
I
think
I
have
the
tools
in
human
resources,
with
a
lot
of
different
contacts
with
doctors
and
workers,
comp
and
those
sorts
of
things,
maybe
to
be
able
to
do
a
little
bit
more
outreach
than
was
done
before.
So
that's
the
thinking
will
so
coordinate
with
Fox
or
retirement
services.
I
know,
Jeff
had
a
bunch
of
questions
yesterday,
I
think
well,
it'll
probably
be
the
same.
J
F
J
I
F
I
The
goal
of
the
city
counts:
tightening
the
process
on
the
disability
committee
Nick,
you
and
I
can
write
about
now
or
get
dick
Willis.
It's
not
that
complicated.
If
this
fails,
this
was
a
good
attempt
to
tighten
it.
There's
some
other
places
to
tighten
it
up
and
we're
actually
doing
that
with
disability
Council.
Turning
the
screws
to
tighten
up
so.
C
A
J
N
N
Maybe
there's
more
work
to
be
done
and
you
know
behind
the
scenes
in
terms
of
what
this
RFP
looks
like,
but
one
question
I
would
have
today
is
whether
it's
anticipated
that
this
board
would
approve
the
RFP
before
it
goes
out
or
whether
and
I
asked
that
question,
because
I
think,
depending
upon
the
answer
that
question
it,
it
leads
to
a
lot
of
other
questions.
So
if
the
board,
for
example,
if
the
board
is
ultimately
responsible
for
picking
the
medical
panel
and
under
the
Muny
code,
it's
also
responsible
for
recruiting
the
medical
panel.
N
N
The
board
can't
be
bound
to
that.
If
it
hasn't
issued
the
RFP
itself,
it
hasn't
approve
the
RFP
or
just
I
could
see
things
like
that
arising
and
then
there's
also
issues
about
who
brings
it
to
the
board,
how
they
bring
it
to
the
board.
Once
you've
got
people
responding,
I,
don't
I,
don't
know.
If
we
have
to
answer
all
these
questions
today,
I
just
want
to
identify
them
and
and
and
make
sure
I
mean
I.
Don't
think
any
I
think
does
this.
This
says
discussion
and
action
I
think
well.
K
K
Oh
they
then,
and
when
Jennifer
approached
me,
I
said
I
want
the
board
to
be
clear
what
the
request
is,
and
you
know
if
you're
bored
feel
that
you
didn't
want
the
city
to
get
involved,
then
you
would
take
an
action,
make
a
motion,
otherwise,
if
you're,
okay,
where
they
will
be
fighting
to
just
direct
staff,
to
work
with
the
city
I'm
fine
with
that.
But
that's
why
I'm
clear
the
address.
N
F
N
J
K
I
do
have
a
question:
I
mean
I
appreciate.
You
said
that
and
I
think
you
mentioned
that
you
fully
expect
to
have
the
same
RFP
that
we
issue.
If
there
are
some
changes
that
you
feel
may
be
needed
and
we
can
discuss
them,
but
I
think
for
Jennifer's
sake
and
my
sake
I
think
I'm
gonna
ask
the
board.
Are
you
asking
to
see
there
a
fee
before
you
go
sour
now?
K
We
need
to
know
that,
because
I'm
sure
the
city
wants
to
move
relatively
quickly
on
the
east
and
if
you
want
the
board
to
sit
in
them,
really
we're
talking
about
you
board
meeting
in
October,
yes
and
then
the
board
meeting
in
October,
because
they're
fed
in
September
does
not
have
a
regular
board
meeting.
They
just
have
a
retreat,
and
so
that
would
impact
have
one
decay
issue
issue
their
pay
for
about
another
45
days.
So
I
just
want
you
to
be
aware
of
it
right.
L
K
L
N
N
And,
and
and
and
I
think
that
it's
a
good
point
that
was
raised
in
terms
of
like
the
level
of
detail,
the
board's
gonna
look
at
an
RFP
anyway,
I
think
the
the
key.
The
key
is
just
that
the
board
and
its
representatives
I
think
there's
an
understanding
here
that
that
Roberto
and
we
as
council
and
Jennifer
we're
all
we
would
all
work
together.
You
know
to
make
sure
that
nothing
happens.
It's
gonna
cause
problems
down
the
line.
So
beyond
that
I
don't
think
a
no
action
means
anything
in
particular
that.
L
N
Nothing
really
built
into
the
code
right
now,
so
the
code
was
written
as
a
change
to
the
plan
to
create
this.
This
thing,
that's
called
the
independent
medical
panel
and,
in
theory,
we're
supposed
we're
supposed
to
have
an
independent
medical
panel.
Now,
instead
of
the
disability
committee
and
the
board,
but
just
as
a
practical
matter,
we
just
haven't
been
able
to
fill
it.
So
you
know
the
reality
is
we
have
to
keep
going
with
the
disability
panel
and
the
board,
because
we
have
no
other
option.
N
L
Just
a
little
bit
of
history
for
those
that
weren't
here
we
negotiated
this
under
the
settlement
and
it
had
a
construction
of
this
board.
We
went
out
to
the
first
RFP,
that's
what
Jennifer
reference
to
RFPs.
We
got
no
response.
We
will
back
to
the
table,
we
renegotiate
the
composition
of
the
board.
We
were
released
some
of
the
restrictions
and
we
went
out
to
a
second
RFP.
So
in
the
event
that
this
third
one
would
not
work,
we
would
basically
go
back
to
the
table
and
renegotiate
the
construction
of
that
board.
L
I
I
If
the
goal
is
to
tighten
up
the
process,
I
think
dick
and
I
can,
in
a
very
short
period
of
time,
tell
you
precisely
I'd.
Do
that
because
we've
been
doing
it
for
some
time
so
I
think
I
know
what
the
city's
goal
is.
I
think
I
know
what
the
union's
goal
is
and
I
think
there's
a
middle
ground
to
be
sought.
It's
probably
not
where
you're
looking
for
it
and
I
say
that
based
and
I
think
dick
will
back
me
up.
I
K
Is
but
I
do
want
it
to
add
as
much
as
I
would
love
for
you
to
be
involved
in
that
process
there,
since
you
again
D.
No,
no,
both
together
comprise
the
Governance
Committee
I'm.
Sorry,
disability
community,
that
I
don't
think
it
would
be
appropriate
for
both
of
you
to
be
in
the
same
room,
because
then
that
that
would
be
a
committee
meeting
of
disability.
So
you
have
to
choose
which
one.
N
If
I
could
just
just
maybe
there
is
one
piece
of
action
that
might
be
mighty
helpful
to
the
process-
is
that
just
to
if
the
board
were
to
delegate
to
staff
the
the
ability
with
with
assistance
of
counsel,
if
that,
if
it
determines,
if
staff
determines
that
after
working
with
the
city,
that
it
would
be
prudent
to
reissue
or
reopen
the
board's
own
RFP,
the
pieces
that
have
already
been
issued
as
a
way
to
carry
out
this
process?
You
know
to
the
extent
that
we
determined
that
needs
to
happen,
that
to
direct
staff
or
it.
N
You
know,
authorized
staff
at
this
time
to
do
that.
Only
if
it
determines
it's
necessary
you're,
not
necessarily
expecting
it
to
happen.
But
we
I
heard
some
comments
about
the
45
days
and
not
wanting
things
to
to
go
too
long
and
I'm
just
sort
of
I'm
thinking
forward
that
if
we
end
up
working
behind
the
scenes
with
the
city
to
try
to
make
this
happen,
but
ultimately
determine
it,
sort
of
needs
to
be
issued
under
the
imprimatur
of
the
board,
rather
than
the
city
that
we
at
least
have
the
ability
to
do.
That
would.
K
K
B
Listen
to
some
of
those
work,
comp
attorneys
just
for
input
would
be
help
because
we
have
resolved
many
issues
working
with
just
listening
to
their
points
of
views
and
issues
that
and
taking
a
shirt
with
the
panels
and
the
doctor,
and
things
like
that.
That
has
come
up
along
the
way
and
I
think
that
would
be
helpful
to
help
speed
things
up
or
whatever
the
goals
are
meant
to
be.
L
A
A
A
K
Thank
You
mr.
chair,
so
nothing
much
to
to
update
you.
No
no
I
mean
this
is
the
most
recent
update
of
the
matrix
for
the
recommendations
and
so
they're
a
couple
that
we
needed
to
work
on
and
we
fully
expect
to
be
working.
Then
they
had
not
been
implemented
yet
in
this
fiscal
year,
namely
the
one
related
to
their
communications.
K
In
fact,
we
have
our
first
meeting
with
our
communication
consultant
next
week
at
our
office,
and
we
also
the
revamp
of
the
of
the
website,
which
we
intend
to
kick
off
mostly
towards
the
second
half
of
the
fiscal
year.
But
the
one
issue
I
wanted
to
raise
here
have
to
do
with
on
page
one
which
is
recommendation.
Number
five
use
is
related
to
the
retirement
board,
should
establish
a
from
a
budget
adoption
policies
and
procedures
that
include
clear
delegation
of
authority
to
staff,
to
spend
plan
analysis
subject
to
certain
limits
defined
by
the
board.
K
K
While
on
those
lines
right,
we
only
the
policy
stated
our
position,
so
we
intend
fully
to
bring
back
a
policy
to
the
Governance
Committee
and
a
vision
to
you
board
that
would
address
that
issue
so
that
we
can
finally
move
that
a
particular
item
from
partially
implemented
to
fully
implement
it.
I
have
been
in
discussions
with
the
city.
Auditor
he's
been
actually
very
patient
with
me
on
these
issues
and
I
also
have
suggested
to
him.
G
K
K
K
You
mr.
chair,
so
quickly
just
a
couple
of
things,
and
this
also
pertain
to
you.
Mr.
chair,
we
received
there
was
a
citywide
email
yesterday
from
this
city,
clerk
and
notice
of
employee
elections.
This
point
particularly
is
related
to
the
federated
retirement
bohr,
employee
representative.
So
it's
a
one
page,
and
so
it
just
notified
everyone
that
this
is
coming
on.
K
We
have
made
some
small
changes
to
the
response
that
you
will
probably
be
receiving
another
one,
if
not
by
tomorrow,
early
next
week
on
the
response
not
most
changes,
just
basically
to
make
sure
that
we
are
in
line
with
the
specific
requirements
to
a
response
with
a
grand
jury
along
the
lines
of
yeah.
We
agree
we
do
not
agree,
we
partially
agree.
We
need
to
agree
or
disagree,
so
to
start
the
recommendations
or
the
responses
that
way,
so
there's
not
really
much
content
changes,
but
when
that
is
completed,
we
will
certainly
share
that
with
you.
K
We
have
shared
our
suggested
responses
with
the
city
and
the
city
have
shared
with
us.
Their
suggested
responses,
so
I
just
wanted
to
keep
your
prize
of
where
we
are
I
wanted
to.
Let
you
know,
especially
for
those
of
you
that
are
members,
know
members
of
the
plan,
but
outside
trustees,
that
the
salary
setting
committee
approve
an
increase
on
you
stipends
from
250
to
260.
So
you
should
be
receiving
those
new
paychecks,
an
increase
from
250
to
260.
I
K
K
We
ask
to
continue
working
with
the
city
on
the
CalPERS
defined
benefit
plan
for
our
investment
professionals.
Calpers
Capet
was
going
to
take
their
item
to
the
City
Council
last
month.
They
were
not
able
to
do
it,
they're
getting
conflicting
input
from
two
sides
of
the
CalPERS
office
and
they're
trying
to
work
through
that
so
I'm
working
diligently,
keeping
in
touch
with
with
the
with
the
city
on
that
issue
and
we're
hoping
that
that
could
be
addressed
in
the
near
future.
K
So
I
will
just
keep
you
posted
at
the
next
meeting
of
what
we
had
on
that
particular
request:
the
pension
immunization
system.
You
know
that
one
of
the
areas
that
we
have
yet
to
issue
to
finalize
is
the
member
direct,
which
is
there
that
would
allow
the
members
to
interrupt
the
database
and
and
and
and
do
their
own.
You
know
self
calculations
and
everything
else.
Among
many
other
things,
and
so
we
had
a
soft
launch
on
that
particular
memory
that
I
read
to
staff
this
week.
K
We
expecting
it
in
two
weeks
to
take
any
proof
from
staff
and
then
actually
have
a
launch
to
the
retirees
mid-september,
with
the
goal
of
eventually
branching
that
out
to
the
to
the
members
of
the
plan
that
are
now
retired
and
active
members
in
the
near
future.
The
external
auditor
from
Greater
Toronto
atone
are
in
the
office.
They
started
in
August
26
and
they
should
be
there
through
months
of
the
month
of
September.
During
their
financial
audit,
we
have
a
new
accounting
clerk
that
will
start
in
accounting
on
September
23rd.
K
We
also
made
an
offer
to
a
financial
analyst
to
work
in
the
best
man
group
that
we
fully
hope
that
they
can
start
in
September
and
we
are
at
the
end
of
the
process
for
the
IT
manager.
You
may
be
called
when
the
our
new
David
director
was
promoted
to
the
position
that
meant
that
we
needed
to
do
a
search
for
an
information
technology
manager
and
we
ain't
the
process.
We're
hoping
cross
our
fingers
that
we
can
have
someone
on
board
towards
the
end
of
the
month
we're
working
to
the
process
as
we
speak.
A
Any
questions
comments,
no
all
right,
I'll
go
ahead
and
move
to
for
be
or
all
update
from
the
city
council
liaison
to
the
board
Pam
Foley.
She
is
not
present
today,
so
we'll
go
ahead
and
and
pass
or
skip
that
which
brings
us
down
to
retirements
five
service
retirements
weighed
in
Casio.
She
fire
captain,
Fire,
Department,
effective
September,
8,
2009
teen,
with
27
point
to
five
years
of
service,
Gerardo
Rodriguez
police
officer,
police
department,
effective
September,
7
2019,
with
twenty
six
point.
One
years
of
service
can
I
get
a
motion.
B
A
A
A
B
A
G
G
And
that
was-
and
we
also
had
a
discussion
on
public
assets
as
part
of
his
annual
review
of
the
different
sub
asset
classes,
which
I
would
commend
that
him
for
doing
I.
Think
he's
on
plan
with
reviewing
all
the
different
asset
classes
and
we
had
some
pretty
extensive
and
a
pretty
in-depth
discussion
on
that.
That's
it.
A
All
right,
Thank,
You
Gia
next
meeting
will
be
October
22nd
2019.
We
also
need
to
receive
a
file
three
different
minutes
minutes
from
May
28,
2009,
teen,
police
and
fire
investment
committee
meeting.
Also,
the
joint
investment
committee
meeting
on
May
20th
2019
and
the
third
resume
file
will
be
June.
21St,
2019
police
and
fire
investment
committee
meet
meeting
minutes.
G
We
are
gonna
go
before
there's
some
some
working
sessions
with
the
City,
Council
and
mayor,
that's
happening,
I
think
it's
just
to
kind
of
get
a
sense
of
what
we
are
getting
closer
to
us
as
a
board
and
it'll
be
with
me.
The
share
of
icy
and
chair
of
the
board
and
federated
and
police
and
fire
and
Prabhu
and
Roberta
will
be
there.
So
we'll
be
talking
about
some
of
the
things
that
we
discuss
here.
Let's
such
as
the
fees
will
probably
be
a
topic
of
discussion.
Okay,.
G
I
Had
a
good
meeting
a
couple
of
weeks
ago,
two
things
really
on
the
agenda.
One
is
of
course,
as
as
always
the
pension
administration
system
and
Barbara
way
in
with
just
a
word
or
two,
but
the
general
gist
is
a
couple
of
months
ago.
We
got
through
the
big
hurdle
of
turning
it
on
it
hasn't
melted
down,
it
hasn't
exploded
and,
as
Roberto
pointed
out,
we're
bringing
on
the
final
pieces,
which
are
all
the
user-interface
I,
don't
Barbara.
L
So
yeah
we're
anticipating
rolling
out
this
member
direct
to
the
members
and
our
retirees
and
and
that'll
give
them
access
to
their
information
again
because,
obviously,
since
we
went
as
we
put,
it
went
as
we
went
dark
in
February.
They
haven't
had
that
portal,
so
we're
very
thrilled
to
be
at
this
point
in
time
and
a
lot
of
people
access
to
their
information
again
great.
I
B
L
That
this
is
our
strategy
of
the
minute,
so
we're
rolling
I
to
retirees,
because
open
enrollment
is
going
to
be
starting
in
November
and
and
there's
gonna,
be
an
uptick
in
calls,
I
mean
for
the
staff
and
will
be
going
on
and
then
for
the
actives
for
anticipating
December
after
open
enrollments
finished,
and
actually
they
can
enroll.
It's
just
that.
We're
not
going
to
be
doing
our
I'd
reach
for
them
to
enroll.
I
The
second
thing
we
covered
was
was
something
gosh.
This
is
the
second
time
have
chaired
the
Audit.
Committee
have
known
this
board
a
long
time
and
about
two
or
three
years
ago
we
had
an
off-site
Hays,
mansion
and
and
Daren
famously
said.
You
know,
we
just
don't
have
a
culture
of
risk
and
he
was
right,
and
so
we've
been
pursuing
risk
now
for
a
number
of
years
and
embedding
it
into
our
culture,
and
there
really
were
two
components
to
risk.
The
most
obvious
was
sort
of
the
whole
thing
about
the
financial
side.
I
The
investment
committee
investments.
You
know,
how
do
we
target
that?
We
see
that
we
meet
with
the
City
Council
right?
What
level
of
risk
should
we
have
and
I
we
tracked,
but
there
was
a
secondary
component
to
risk
that
fell
to
the
staff
and
and
and
to
the
Audit
Committee,
and
that
was
internally.
How
do
we
deal
with
risk
in
our
processes?
How
do
we
deal
with
with
risk
as
we
audit
ourselves,
and
there
was
a
superb
presentation
and
the
documentation
is
here?
What
was
that
gentleman's
name?
Roberto
Elaine.
I
K
Do
I
want
to
first
apologize
on
behalf
of
Elaine.
He
actually
has
been
sick.
The
last
couple
of
days
he
wanted
to
be
here
this
morning.
I
want
to
publicly
acknowledge
his
his
body
of
work.
Being
a
former
accountant
auditor
internal
auditor,
I
am
just
want
to
echo
your
words,
magnificent
work,
creating
the
audit
Charter,
creating
the
five-year
plan
with
ratings
and
scores.
K
Of
course
we
haven't
done
the
work,
but
there
was
a
lot
of
thought
to
put
into
that
and
I
think
what
I
mentioned
at
the
meeting
drew
is
that
if
this
is
any
indication
indication
to
the
kind
of
work
that
he's
gonna
be
producing
and
just
so
excited
about
it
long
time,
do
he's
gonna
be
looking
at
the
operations
all
over
the
office
and
I'm.
You
know
I
think
if
I
can
put
it
in
a
sentence,
I
think
we're
hoping
to
go
from
being
reactive
to
being
practice.
K
So,
looking
forward
to
the
work,
I
promised
Elaine
that
you
have
all
the
documents
there
if
there
are
any
questions
whatsoever
and
happy
to
address
them,
otherwise
he
already
started
the
work
he's
working
on
his
first
audit
and
I'm.
Looking
forward
to
working
with
him,
of
course,
I
can't
emphasize
enough
I
know
very
well
the
body
of
work
of
an
internal
auditor.
They
need
for
no
actual
Joe's
independence,
but
not
just
the
view
of
been
independent,
but
actually
to
be
independent.
So
well,
he
will
work
with
me
for
most
issues
at
the
office.
K
He
has
complete
access
to
both
re
committee
chairs
and
he
had
the
right
to
reach
out
to
the
community
area
Sunday
board,
regardless
of
working
with
me,
because
he
reports
to
me
from
somewhere
administrate
standpoint,
but
in
reality
he
works
for
the
committee's
and
the
board,
and
so
he
should
have
the
right
access
whenever
he
needs
to
so
I
just
want
to
make
that
point
clear
as
well.
That's.
I
I
K
Any
case
I
do
want
to
know
that
you've
raised
the
issue
to
cigarettes.
Couple
of
things
he's:
are
it's
not
going
to
be
two
or
four
they're
going
to
be
so
no
they're
going
to
be
compliance
related
and
then
other
ones
is
going
to
hear
it's
going
to
have
a
combination
of
compliance
and
efficiencies
which
comes
to
the
operation,
so
I
mean
it's
going
to
be
both
sides
I
think
he
has
excellent
background.
I
think
the
question
is
going
to
be
at
some
point.
K
Of
course
we
do
this
every
year
is
at
some
point
is
whether
he's
gonna
need
some
help
in
the
future.
Now
we're
not
there
yet
nowhere
near
but
I'm,
looking
forward
to
his
work
and
see
what
comes
out
of
his
audit
and
the
results
so
that
we
can
one
make
sure
that
we
are
compliant
number
two
make
sure
that
where
we
can
become
more
efficient
and
effective,
we
can
do
that.
I
mean
just
for
sake
of
discussion.
K
Is
that
sure
the
city
auditor
here
for
the
city
had
the
chance
to
audit
finance,
but
I'm
gonna
work
with
him
to
make
sure
that
he
has
access
to
the
city
paper
of
fine
and
so
that
he
can
audit
that
as
well
as
it
relates
to
what
is
pension
about
to
us,
because
we
can
have
the
best
operation
in
the
world.
But
if
that
information
that
comes
down
to
us
is
no,
no,
it's
not
accurate.
We
will
be
finding
ourself
five
years
from
now
ten
years
from
now
I'm
doing
another
work
on
fixing
everyone's
pay.
F
K
K
Have
a
have
a
meeting
in
a
time
some
time
and,
in
fact,
after
this
board
meeting
scheduled
for
11:00
a.m.
we'll,
have
a
joint
Governance
Committee
so
for
trustee
Vado,
trustee,
Moyer
and
trusting
us
well.
Staff
want
to
thank
you
for
be
willing
to
wait
until
11
o'clock
to
have
that
committee
meeting,
which
is
maybe
someone
lengthy
since
we
haven't
met
for
a
while.
Thank
you.
I
Couple
of
words,
if
we
put
together
a
process,
we
used
to
hear
these
disabilities
decide
the
board
and
it
was
a
very
dysfunctional
process
and
so
might
be
four
or
five
years
ago.
Dick
and
I
sat
down,
and
we
said
well
what
is
it
that
we
really
need
to
prove
when
we
had
Jeff's
help
and
and
we
instituted
those
are
probably
half
the
board
set
through
those
disability
community
meetings,
we
Institute
a
really
tight
process
and
we've
never
actually
sat
in
a
disability
committee
and
said
so.
I
Here's
the
process
in
here
here's
how
it
works
and
part
of
the
reason
we
didn't
details.
We're
always
a
little
worried
that
when
you
tell
lawyers,
there's
always
lawyers
in
the
room,
how
process
works?
No
offense
Jeff,
we're
lawyers.
Think
of
well.
How
do
I
get
around
the
process
right,
but
we've
got
enough
respect
for
lawyers
in
the
room
and
they've
been
very
helpful
that
we
had.
We.
I
We
finally
had
a
case
come
to
us
this
last
time
where
the
process
worked
but
led
us
to
a
conclusion
where
we
all
might
feel
right,
and
so
dick
and
I
sat
there
and
told
everybody
in
the
audience,
including
lawyers.
Well,
here's
how
the
process
is
supposed
to
work
and
here's
what
it
didn't
work
in
this
case.
So
that's
kind
of
full
cycle
anytime.
You
try
to
change
something
you
run
it
you're
running,
run
it
until
you
find
well,
okay,
it's
working
great
work,
great.
It
didn't
work
and
I'm
really
happy
to
report
everybody.
I
The
lawyers,
everybody
in
the
crowd,
ready
on
the
panel
said:
okay.
Well,
let's
lift
the
hood
find
out
what
went
wrong
and
we'll
we'll
rehear
the
case
in
a
couple
of
months,
so
I'm
guessing
dick.
That's
kind
of
what
you
want
to
point
me
to,
but
you
know
hopefully,
I
know,
I,
know
it's
a
suicide
mission
for
angle,
but
we'd
love
to
be
involved
in
the
redesign.
I.
I
Think
the
goal
of
the
unions
and
the
goal
of
City
and
the
goal
of
the
panel
is
the
same,
which
is
to
reward
a
disability
to
someone
that
deserves
it
and
to
make
sure
someone
who
doesn't
doesn't
get
one,
and
there
are
some
things
we
can
do.
Just
like.
We've
been
doing
over
the
years.
I
think
that
will
ensure
that
we
have
the
highest
confidence
that
that's
what
we're
doing.
Thanks.
B
For
making
it
the
process
the
boxes,
it's
such
an
improvement
I've
been
here
over
20
years
and
disabilities
and
I
can
tell
you
that
this
is
the
best
process
going.
We
saved
the
city
and
this
retirement
system
money,
but
the
most
important
was
in
this
last
case.
It
was
over
an
hour
discussion,
very
in-depth,
and
it's
not
that
we
didn't
believe
the
candidate
because
I
happen
to
know
the
person
I
know
there
worked
not
that
well
retired,
but
the
causation
and
different
and
then
a
lot
of
times.
B
Our
own
applicants
place
at
fart,
both
don't
have
proper
records
and
it's
their
fault
all
the
time.
So
the
doctor
is
trying
to
be
very,
very
helpful
and
wanted
certain
more
information,
of
course
drew
and
myself.
We
supported
the
doctor
all
the
way
it
not
taking
sites.
Those
things
have
to
be.
Those
are
the
boxes
that
true
written
up
and
they
have
to
be
to
our
satisfaction
and
we
make
a
decision
based
on
a
medical
evidence
only
that's
all
this
to
it.
B
B
B
So
to
the
people
have
to
gonna
meet
down
the
road
you
can
change
whatever
you
want
to
change,
I
think
you're,
making
a
drastic
mistake,
because
we
both
do
it
because
we
care
about
the
applicants
and
our
system,
and
you
make
it
a
very
wonderful
system
and
the
ideas
that
were
saving
money
and
caring
about
the
group.
So
anyway,
good
meetings-
and
we
got
more
to
do.
F
A
Alright,
so
next
means
October
7th
2019
go
ahead
and
receive
the
receiving
the
file
that
minutes
from
May
13,
2009,
teen,
police
and
fire
disability
committee
meeting
will
also
receive
and
file
the
first
quarter.
2019
dashboard
reports
and
detailed
statistics
reports
brings
us
to
the
joint
Personnel
Committee,
our
chair,
Lanza's
or
not.
So
sorry,
sorry.
K
K
Thank
You
gf,
for
making
yourself
available
this
coming
Monday
from
12
to
2
and
our
offices
and
the
fifth
floor
and
in
a
nutshell,
they
already
an
issue
that
they're
working
on
is
number
one,
is
really
developing
the
process
and
the
timeline
for
the
annual
performance
evaluation
for
the
CIO
and
CEO
and
and
also
at
the
same
time,
they're
working
now
trying
to
submit
it
by
the
end
of
December.
Because
of
the
gradual
report.
K
They
are
also
trying
to
work
on
performance
metrics
that
could
be
included
in
the
annual
performance
evaluation
for
the
CIO
and
CEO,
so
they're
trying
to
come
to
understanding
what
those
metrics
should
look
like.
So
those
are
the
two
main
issues
that
they
are
going
to
be
working
on
for
the
next
few
months.
The
goal
is
to
meet
every
month
through
November
so
that
we
can
come
to
both
of
you
respective
boards
in
December
for
approval.
That
concludes
my
my
up
day
and
and
Vince.
If
I
was
mistaken,
you
can,
let
me
know
later.