Transcripts For SFGTV Retirement 20240703

Public comment at this meeting after closed session. We have no closed session today. There is a opportunity to comment on each discussion or actionetum on the agenda. Each comment is limited to two minutes. Public comment will be taking both in person and remotely by callin. For each item, the board will take Public Comment from those attending the meeting in person and then those remotely. Comments are opportunities to speak during the Public Comment period are available via phone by calling 4156550001 access code, 26620891628 and and again. When connected you will hear the meeting discussion but be muted and listening mode only. When your item of interest comes up, press star 3 to be added to the speaker line. Best practice are call from a quite location, speak clearly and slowly and turn down your tv or radio. Please note the city policies along with federal state and local law prohibit discriminatory or harassing conduct against City Employees and others during Public Meetings and will not be tolerated. Moreover, Public Comment is permitted within the jurisdiction of the meeting body. Thank you for joining us. Thank you. No Public Comment is required on this item. Can you call the next item . Item 3, general Public Comment. Reminder Public Comment is limited to 2 minutes. Do you want to just put a parathenical note about the translation . Sorry. Could nt hear you. To add to what was said, we provide two minutes for Public Comment when translation is needed well provide four minutes. Okay. We haveyou want to call the item for Public Comment . Do we have inperson Public Comment . Go ahead and step up to the podium. Thank you. Good morning. My name is laura perez a organizer with unit here local 11. We returned to sf today because Hotel Workers have fou been walking out on rolling waves of strikes over two months in Southern California and picketing Arizona Hotels to fight for fair contracts. This includes calpers which canceled the pathways for Women Conference scheduled for august 2122 at the anaheim hilton. Since local 11 members voted 96 percent to authorize the strike in june, the strikes have been covered in 1725 separate tv, radio and online news clips. One article alone in yahoo life style had a estimated audience of 258 million viewers. Today well hear from workers from the elsugundo hotel and sheridan Phoenix Hotel owned by black stone and hear from the local 11 resort at the peaks where workers are negotiating a contract with Fortress Investmentp groups which owns a hotel. Workers protests have generated Media Attention causing headline and Reputational Risks for sfers which invested 75 million in fortress Real Estate Credit opportunities. These are stories of courage, working people going on strike and sacrificing pay checks because they have been pushed to the brink and no longer survive and provide for fair families. Workers [indiscernible] strike in Southern California your fiduciary responsibility to act becomes more and more evident. Please tell black stone and fortress to resolve the labor dispute and negotiate peace agreements to protect investors from labor strikes. Thank you. Good morning. My name is fur nan doperez and thank you for your time. I work in [indiscernible] elsugundo. Supervisor over three years. [difficulty hearing speaker] i can barely get by on my pay. We make so much less then the other hotels in downtown la. [indiscernible] i have two sons and a mortgage. My older son fur nan dough is attending ucla and [indiscernible] for me it is nearly impossible to support them [indiscernible] with the money there is not enough to pay my mortgage. Im fighting because i believe we deserve a raise. It is so expensive to live anywhere in Los Angeles County and areas around there. I do this backbreaking work and i deserve to make a living wage. That is all we are asking for, a decent wage to allow me to live, not just survive. Please tell black stone to do the right thing and settle the contract. Thank you so much for your time. Hell o everyone. I hope you had a good morning. My name is patten and work at the sheridan in phoenix. I was raised by a single mom and watched her struggle money to support the family. She had a variety of jobs. She worked at [indiscernible] to Dollar General and did caregiving. I was inspired to pursue a Higher Education to escape the trap of poverty and low wage jobs. I pushed my sl in school to earn the grade which allowed me to get nearly a full ride to asu. I dreamed becoming a immigration lawyer to fight for justice for people the legal system was overlookingism with the full ride making ends meet is still a challenge. Without the scholarship i would have had to pay 1500 in rent. 4 months out of the year [indiscernible] i pay nearly a thousand dollars a month. Without my scholarship i would have been impossible to pursue Higher Education even working full time with the reduced rent burden, it is a challenge to make ends meet. [indiscernible] only making 17 an hour. Please tell black stone to resolve a fair contract for us as one of the largest Asset Managers in the world they should set the standard for many hotels and wages and benefits in arizona. [speaking spanish] good morning, my name is Maria Rodriguez and worked at the point hilton hotel in phoenix arizona owned by Fortress Investment group for the last 32 years. [speaking spanish. Waiting for translation] i began working a the hilton for enough money to support myself and children. At the time paid 4. 50 per room and clean up to 16 suites. It was very hard. When one has necessity you do what it takes to survive. [speaking spanish. Waiting for translation] since 2001, i worked two jobs and always wanted to be able to provide something a little better for my kids. Those two jobs insured i could always live in a safe neighborhood. I have been grateful to have both jobs, because they allowed me to support my family and i always enjoyed providing a great experience for guests at the hilton. However, the hotel does not pay enough and im grateful my husband was able to use his 401k to finally pay off the house, but now we dont have that much money left to retire. [speaking spanish. Waiting for translation] i want to be able to retire and fighting to insure the hotel contributes a fair amount into our pension fund. Housekeeping is a very hard job and we deserve a fair wage to match our effort and to keep up with the rising cost of necessities such as food and electricity. [speaking spanish. Waiting for translation] please help us and tell fortress to resolve a fair contract for us. Thank you. Good morning commissioners. My name is ti hud son the Research Director of unit local 2 in San Francisco. As you heard from the workers today from los angeles and arizona, Hotel Dispute extend to black stone and Fortress Investment group. Following high profile child labor scandals in modern history and poor performance by prior black stone partner funds, black stone struggled to raise capital. Black stone also fundraising for black stone real estate [indiscernible] black stone Real Estate Partners [indiscernible] debt strategy 5. All funds could invest in the Hospitality Industry or others subject to labor disputes. Until black stone and fortress are able to resolve labor dispute and insure the firms can garen teen labor peace in the Hospitality Industry, we urge you not to reinvest with either firm. Hope to agendize a discussion how to mitigate risk associated with labor disputes at the upcoming Investment Committee meeting and look forward collaborating with staff and trustees. Thank you. Thank you. Do we have further inperson Public Comment . Seeing none, callers, you have not done so, press star 3 to be added to the queue. Those on hold, please continue to wait until the system indicates you have been unmuted. Moderator, do we have any callers on the line . Madam secretary, yes, we have one caller on the line. Thank you. Caller, please state your name. Your two minutes begin when you speak. Good morning. My name is kevin [indiscernible] serve 20 years as a Police Officer in San Francisco. Until my careernded when crushed between two vehicles. 29 months ago i submitted [indiscernible] at that time i are was told it could take up a year to process my application. After one year mark was told it could take up to two years. As the 2 year mark approached i was told it can take 2 years plus. [indiscernible] under a year. The longest being 15 months. I called calpers and told it takes 4 to 6 months [indiscernible] i was told by your staff that it takes same amount of time for calpers to process an application [indiscernible] two months ago i was told i was in a group of 60 applicant ready to go. [indiscernible] onlydies 7 hearings a month, if im 5460 then it takes 3 years to process my application. This to me is absurd. Why can other counties process applications three time faster . Even ssi takes 14 months to process. What upsets is todays agenda a Police Captain applicant f who retired last june got his idr claim completed in less then 14 months. Do captains get preferential treatment . Do they get to skip the line or which commissioners did he ask a favor to move up the list . I think the commission should answer why this applicant was moved ahead of other people and also divest from black stone. They have a bad agenda. Thank you. Thank you. Moderator, do we have any further callers . Madam secretary, there are no further callers on the line. Thank you. Hearing no further calls, Public Comment is now closed. Madam secretary, you want to call item 4, please . Item 4, action item. Approval of the minutes of august 17, 2023 retirement board meeting. Move to approve the minutes. Thank you. Second . Second. Okay. Public comment, please. Thank you. Calling inperson Public Comment . Seeing none, moderator do we have any callers on the line . Madam secretary, there are no callers on the line. Thank you. Hearing no calls, Public Comment is now closed. Madam secretary, wellbeen moved and seconded. All in favor say aye. Those opposed, nay . Motion passes. Madam secretary, next item. Thank you. Item 5, action item. Consent calendar. We have all that information in our packets. Is there a motion to approve the consent calendar or does anybody want to take one item out . Move to approve. Second. Madam secretary, call Public Comment. Are thank you. Calling inperson Public Comment. Seeing none, moderator, do we have any callers on the line . Madam secretary, we have one caller on the line. Thank you. Caller, please state your name. Your two minutes begin when you speak. This is kevin [indiscernible] on this particular item i want to know why applicant f claim was processed in 14 months. That is way faster then im getting. Thank you. Thank you for your call. Moderator, are there any further calls . There are no further callers on the line. Thank you. No further calls, Public Comment is now closed. It has been moved and seconded. All those in favor say aye. Opposed . Motion passes. Thank you. Call number 6, please. That thank you. Item 6. Action. Review and acceptance of the supplemental cola analysis as of july 1, 2023. Good morning commissioners. We ask you accept the cola analysis as of july 1, 2023 and direct retirement staff to notify spers retirees no cola is payable effective july 1, 23 under chapter section 88. 5263. Discussion item. Action item. Thank you. It is action. Sorry. Anybody have any questions . Comments . If not move to accept the report. Second . You looked like you wanted to say something. Second. Please make sure to turn on your mics when you speak. Second. Okay. Moved and seconded. Lets call the roll then to vote. Public comment. Public comment. Do we have inperson Public Comment on this item . Seeing none, reminder to callers to press star 3 to be added to the queue. Moderator, do we have any callers on the line . Madam secretary, there are no callers on the line. Thank you. Hearing no calls, Public Comment is now closed. Been moved and seconded. All in favor of the motion, please say aye. Those opposed, nay. None. Motion passes. Madam secretary, next item, please. Item 7, discussion item. Committees report goal tuesday goals to the board. Commissioners, what you see in this agenda item really the culmination of the work with my team to determine what we need to accomplish this year in committees as well as the work of all the Committee Chairs. We worked hard collectively to set up the calendar and agenda items in these materials. There is a lot of important work to be done in committees this year and look forward having those on the calendar and moving through those in a efficient and effective manner. We have focused on maximizing participation in the Committee Meetings, and we have worked very hard to accommodate schedules. There might be cases already where we cannot have Committee Members there but we have done our best to get things on the calendar and accommodate where we can. What you have in your materials is a report from each of the Committee Chairs. I think the materials are relatively selfexplanatory, but i am happy to turn it over to the president or Committee Chairs should they want to talk about what is fallowed by the memo. I have a few comments and onethey are very brief and you heard me say this before. It is really important that we stick to the quorum requirements of each committee, and in order to do so the timeliness of our responses is important, and it is all spelled out on the last item on the first page of this item, and i can only encouragei thank all the board chairs for their leadership and can only encourage my fellow Board Members to stick to what we are talking about in terms of timeliness and attendedance. On the attendance issue, and ill put this out there, in the event that there is a problem that would necessitate the cancellation of a last minute Committee Meeting, i will attend that Committee Meeting. If there is a quorum problem. That will solve that. I hope we dont have too many of those. Hopefully we dont have any, but it is applies a lot to the Investment Committee because a lot of times we have people flying in. In the past we had to cancel things right when they were in the air, so thats end of my comments. Anybody else have any comments . If not briefly, i wanted to thank you commissioner heldfond for that. Attendance at the committees is difficult in making sure we are all here in person and ready to go is absolute priority and i know we heard a lot about challenges just rescheduling but you are willing to step in on a committee in a emergency is good, but i want to emphasize the same point that we need to do everything we can to make these meetings we were appointed to this body to attend and participate in. Thank you. Appreciate that. Okay. Can we call for Public Comment . Sorry. One further comment. These committees have a way of overlapping, so just to give you a notice, in terms of the Governance Committee, one topic i are plan on driving is the issue about decision quality. When you see the Education Plan, it is because of a lot of decision quality issues wind up under Investment Committee, and where we recently changed and planning to delegate more authority to staff for investment decisions, this issue rises further. It is part of governance a issue. That is why it shall be discused in Governance Committee. That is why welli may ask commissioner thomas the chair of that committee consider adding some of that time for that topic, because it also has to be coordinated with the ceo, cio plan for developing staff skills and process in decision quality. We have to approach from both ends. For the board to understand the decision quality, we have to have more information and training on that subject. Thank you. Thank you. Call for Public Comment . Any inperson Public Comment . Seeing none, reminder to callers, to press star 3 to be added to the queue. Moderator, do we have any callers on the line . Madam secretary, there are no callers on the line. Public comment is now closed. Call the next item, please. Item 8, discussion item. Chief executive officers report. Commissioners, we have or i have two items to note in this report here today. First, we have issued a rfq for a stewardship Corporate Governance strategy consultant so in a blackout period to provide context. We have the program as it stands up and running for about 5 years, and we think it is is a appropriate time to continue our evaluation of the program and plan for the future. This will provide Specialized Services particularly in the first pillar related to Asset Stewardship in Corporate Governance so well provide updates throughout the process, but most importantly wanted to let you know per our policy we are in a blackout period. Secondly, we had questions and therefore wanted to provide a update on with respect to [indiscernible] i was going to turn it over to cecilia to provide that update. Good morning Board Members. I are wanted you to be aware midaugust a class notice went out to certain spers members either in email or through a postcard notifying them of a tentative Class Action Settlement that stemmed from a security incident with one of spers memberswith one of the vendors that occurred in february of 2020. Now there is a tentative settlement, what people need to do is either make a claim, which entitles them to 60 and credit monitoring, or they can opt out and pursue their own lawsuit. They have until october 25 to submit the claim or opt out. If they do nothing then they are subject to the terms of the settlement, but dont get any benefits of it. Anyway, if you have any questions im happy to answer them. That card was mailed to all members . So, it went by email primarily. If we didnt have an email address on file, a postcard was sent and only went to the members whos personal information was exposed. People who didnt hear anything that means it wasnt exposed. Thank you. Everything i had on the ceo report, unless you have questions. You are looking forward to your presentation at the conference in stanford . Yes, thank you. Great. I am really sorry, i didnt know about it earlier. Okay. Public comment, please. Thank you. Do we have inperson Public Comment on this item . Seeing none, reminder to callers to press star 3 to be added to the queue. Moderator, do we have any callers oen the line . Madam secretary, we have no callers on the line. Thank you, hearing no calls, Public Comment is now closed. Good time to do this. Lets keep going and see how these go and talk about when we might want to break for lunch. Call the next item. Thank you. Item 9, discussion item. Fiduciary governance training. Good morning Board Members. I will be giving the fiduciary governance training in conjunction with Ashley Dunning and i think we have a slide show that should be going up. There we go. Next slide, please. Was that deep in the weeds . [laughter] go back one slide. Also, a fall theme. Oh, good. Okay. Next slide, please. We are starting with a overview to let you know what lies ahead. Our last fiduciary training was actually in december, 2022 so well start with a recap, then well give new dos and donts and finally do a deeper dive in two topics and that sets the stage what is coming up in 2024 and those two topics are the board Education Needs assessment, and the governance report. Now turning it over to ashley for the next slide. Thank you cecilia. My mic is on . Alright. Recap of the presentation we provided to the board back in december. To remind everyone, but not repeat. We reviewed your fiduciary duties of prudence and loyalty to the members and beneficiaries. We distinguished between the role the city has versus the role of each of you as trustees of this plan administering the plan and investing its assets. We did provide dos and donts, tried to mix it up with additional dos and donts well go through next. We talked about the very important oversight and monitoring responsibility the board has with respect to all the different functions of sfers. We also focused on prudent delegation as a fiduciary act, and talked about various models for investment delegation specifically. We walked through investment Due Diligence and what that looks like and then we described the planned investment delegation report we were going to do at that point. That has subsequently been completed, presented and acted upon by the board. Now moving on to the next slide, please. With the dos and donts. Now we have come up with concrete examples to bring home those principles you have been hearing about, and the first item there youll see is the role of Committee Members. What you want to do as a Committee Member is engage actively in the committees that you are assigned to, come prepared to meetings, provide insight, oversight, ask questions and follow the principles set forth in the terms of reference, which there is a separate one as you know for each committee. Things you should not be doing as Committee Members is, interacting directly with sfers staff, instead of going through the ceo cio. Talking directly to a third party. Requesting particular consideration of special projects. One example of this might be talking to a legislator with your retirement board hat and asking for an expansion of benefits or something along those lines that would be mixing of the settler and board functions. We welcome questions, comments as we go through this as well. This is education but dont need to simply talk to or at you if you have things you want to share, we are happy to engage in that discussion. The second topic we identified is the role of the president of the board as well as the chairs of the committee. The do here is that those individuals act as the point people for the ceo cio with respect to the topics within their jurisdiction and conduct meetings fairly to solicit input from all trustees. There was ref erence in one of the prior agenda topics of the report the Committee Chairs provided to the boardered regarding their objectives and that is in line with this do. The dont would be, if any of those individuals quhoo are in leadership roles dont participate. Dont show up at meetings. Dont do what they are supposed to do in timely manner and in that wayfrom their leadership role. Next slide, please. The next item is board training and what you want to do is attend all trainings at the board, which you arecurrently doing here, and also choosing relevant training opportunities that are circulated every month to learn more about topics of importance. The dont here would be, missing the sfers training opportunities, and also attending conferences or trainings that have only a peripheral relevance to your role as a board member. Just a quick question on conference. Is it safe to say that conferences on the sheet are sort of prevetted as applicable and then we should seek guidance for conferences that are not . That is correct. Thank you. The board will be going through a needs assessment, Education Needs assessment later in the presentation so well continue to refine what the Board Members feel they need to properly do their job, but thats a great touchpoint that you are provided with a chart of already vetted opportunities and as importantly to cecilias comment, you are provided with trainings such as this one onsite of minimal cost to the organization, so those are opportunities people should not miss. Can i go back to a item . A question. In our firston slide 5 when you started this, the interaction with the third parties, if i can drill down if that is a situation that we constantly take Public Comment and we dont respond to Public Comment. Correct. But we are contacted directly as a board member about a position that was presented in the Public Comment. Does that fall into that . It does. It also falls into the one im just about to talk about. Ill back up. Why dont i address it. Okay. That is a important one. Back to slide 6. This is board responsibilities. So, ill start with a do and get to the dont. Okay. Actually, now i realize it was later, but i will touch on it here. Board members, the do is Board Members participate thoughtfully with the ceo cio within subject matter jurisdiction. The policy objectives. The dont is directing action where support is delegated and that goes back to a discussion we had at the beginning of thefor example, the investment delegation, when that function has already been delegated directing action within that rubric would not be appropriate. But so that i respond timely to the board president s question, when youre communicatingif a Third Party Contacts you relating to sfers business, what i say best practice would be number one, make sure your ceo cio know so no one is blindsided. Secondly, be in listening mode opposed to providing information on behalf of the board, unless the board authorized you to provide information on the board. Certainly, you are all Public Officials since you sit on this board. You may in fact also wear over hats but if you are talking sfers business, consider yourself to be needing to follow all the obligations of a sfers board member as a fiduciary, not to speak on behalf of the board when you dont have that authority to do so. Certainly listen. And then report back to your ceo cio so she knows what type of information you are getting and can either correct it or respond to it, whatever is appropriate. So, if i was translate that into how i see this item, the information that we deal with in terms ofill focus on Public Comment or reach out to Board Members via mail or whatever, but it is one on one. Might be a group email but comes inthat is a question. That is a instance that under the terms of reference that we are taking that in for personal information so we can act in a proper way as a board member. We have a universe. We have information coming in, but it is not in the term of reference that we act on them. In other words, we dont have a obligation to respond. We dont respond in Public Comment, but we treat it like that, but it does shape our decision making. Potentially. If it is relevant. There is Different Things going on between how you respond to Public Comment in a open meeting, versus the other in the senseill differ to your general counsel, generally one doesnt respond to non agendized topics and have big discussion because that is violation of open meeting law. Sidediscussion it is more a matter of proper governance. Who speaks for the board and who does not. Yes, you can be in listening mode. Another point i make, you receive a lot of confidential information as Board Members whether about investment portfolios, about peoples disability retirement applications, whatever it might be, and you have to be very careful not to impart anything that is confidential piece of information to another who is not entitled to have it. So, thats another element you need to keep in mind when you are communicating with others about sfers. Okay. This is important. It is great topic. How we comfort ourselves in the situation isyour point is even more taken on the investment side, because we are trading a lot of information and we are putting out money of support in various groups and investments, which could if public have some influence on it. Am i right in saying, filtering downif i get a letter, an email from an Interested Party that a, gave public testimony, b, had transmitted through Public Comment or whatever and that was the sole purpose of the contact to me, what do i do . What am i expected to do and what is the norm . What is normative . I send it to the chief executive. That is not only the norm but the best practice. You should be referring to the point person for the organization who is your ceo cio. Okay. Great. Thank you. If i may add, on this point there is a lot of good information in the communication policy that we enhanced this year and you all signed off on, so two areas of note and working off memory and dont have it in front of me, but there is an element of the communication policy that indicates Board Members can share basic information, but anything beyond basic factual straight forward information should not be conveyed with questions, be it members, be stakeholders, those should be directed to me. There is also a section in the communication policy about the role of the spokesperson and only the spokesperson for the board can convey information or decisions on behalf of the board and through the governance policy, the board prez sident is the spokesperson. To mrs. Doneings point, being in listening mode is a effective way to approach that, because to the extent there are decisions that need to be conveyed or actions taken typically that comes through the spokesperson. I add one more consideration when you meet with third parties, which under sth brown act you have to be careful not to turn it into a meeting to which the public was not invited, so you shouldnt be getting information from a third party telling you the other board member thinks x. The third party shouldnt be a conduit for Board Members to communicate outside the public realm, so just one thing that comes into play when you meet privately, which ideally you would not be doing as best practice. Let me throw outsorry to hog the questions. In the past, i getas a board member, not only this board, but other boards i sat on, i get a call from somebody that saysi know that is involved in the issue that lets have a cup of coffee and meet and talk about it, and it is just one on one. Maybe one on two, but thats the max. Thats legit . You have to be cacareful, one on two can be a quorum of committee if they communicate on the a committee. [indiscernible] okay. But, the point is very important because you such a small board and small committees therefore. Two people of a three person Standing Committee is a quorum, so you have to be very very careful about that. Can those two people on the same Committee Meet as long as the topic isnt something that is what the committee deals with . Of course. You have to be carefullets be specific because this is enough confusion going on about who you can talk to, when you can talk to them. Within the jurisdiction of the committeeif the committee is the Governance Committee and falls within governance or some other committee that has broader jurisdiction, just be careful. Okay. That is good. Excellent questions and appreciate that hypo non hypo, because that brings clarity to this. This organization is so complex and if you break it down into the areas we are involved in, there are so many inputs that come in, we are going in dangerous territory if we take all that andwithout a filter. Exactly, and each of you have other lives and we understand that. You have day jobs so it is important also to just put the sfers responsibility into a separate box and recognize there is special rules that apply. It cant be discussed in ways you might discuss other aspects of your work or lives. Next slide, please. This is our final slide with dos and donts and touched on this a little already. Exactly. We did already into the next do and dont, which what you want to do is ask questions and request information with the exclusive purpose of fulfilling your fiduciary duties. The dont here is asking questions or participating with a priority other then in your capacity as a board member. The final one, communications with members also refers to something that was alluded to or mentioned about communicating simple information when asked general benefits questions from a member and referring to members to sf connect. Ianother more general comment there is, there is a lot of really good information on the sfers website, so if not relating to Member Benefits in addition to referring to your very busy ceo and cio, to extent there is a report that is on your website, or a Meeting Agenda topic that has good backup that will respond to a members question to you is perfectly reasonable also to refer people to the website. One comment on this and experienced especially on the Health Service system bord which i sat on quite some time. We have to come toim appointed representative on the board. We have people that are elected by the constituency and retiree in the Health Service system as well as sfers are a big group, and they have needs in some cases that are a littleneed a littleteneder love and care. Knowing an elected board member who represents them on the board is i think we dont want to cut that access off. We dont want to pedestrianize it, but we dont want to cut it off i dont think. We are not saying an elected member cant [indiscernible] i need to unpack a couple things just said. One from a fiduciary perspective. One is, each come to this board from different places, some are appointed by the city, some elected by retirees, once you are here you are not here to represent that group you are here to act on behalf of the members and beneficiaries of the plan so you have that exclusive responsibility s. That is the benefit rule. That is the primarily rule. That said, absolutely somebody who is a retiree say of sfers is going to be viewed as one who maybe understands better the problems of retirees, and certainly will not turn a deaf ear to retirees speaking to them on the contrary. They are probably viewed as somebody who is able to hear retirees better. What that person should not be doing though is two things. One, either counseling somebody on their own benefits. Thats the job of your staff here. That is a very treacherous road to be on, because somebody will get Incorrect Information and well informed as each of you are, you are not to be counseling members. Number 2, there should never be perception or realty somebody has special access, special privileges because they know you. There was a reference in Public Comment here to speculation around that topic and you can see how destructive that could be to a organization if people have special access because they know your number. Both of those points are really important to address and not become problems for the organization either special access or youre providing specific information on peoples benefit and you do that by director them through the proper channels, very nicely. Cecilia, if you have other comments. I responded and i dont on that one to the scenario presented. Thanks for that. Certainly. Question to clarify. Taking into account what you said it is the board member responsibility and ability to meet with a constituent group, listen to the thoughts and concerns and are direct them to the appropriate channel so long as you are not doing roles that have already been delegated to staff . Absolutely and i suspecti wont speak for your ceo cio but having somebody be a sounding board to convey concerns or interest that may be out there to your ceo cio is invaluable. Because you dont want concerns to go without being heard and at least able to be addressed through the proper channels. This goes hand and glove what you mentioned about the reference to communications and the like and how we comport ourselves in that. We dont want to have a waterfall of stuff that comes into the [difficulty hearing speaker] a group and alluding what they are doing. If there is misinformation out there, this is something also that your staff can address. I read through the news letters or other communications and if you alert mrs. Romana to that, she can address it. I would add that, thinking of them as members to whom you also owe duty. Not as much constituents who elected you to the position, but it would be aiding members or listening to what they have to say and passing it on. Right. Okay. Next slide, please. Alright. Our next item here is the board Education Needs assessment. In the contract the City Attorney office has, we included in the scope of work that the firm would conduct a annual retirement board Education Needs Assessment Survey and prepare a report for the retirement board. This is underway. Ceo cio delivered the needs assessment, correct . Survey, correct. Anyway, that is it background and ill turn it over to ashley where we are. My understanding is that some but not all of the Board Members have responded to this, so this is your particular reminder to please respond to that if you havent yet and we might send a reminder to those who have not yet responded because that is input important for the Governance Committee to consider at its upcoming meeting in october to take potentially recommend next steps in terms of refining the Education Plan and training opportunities identified in the reports you get every month and perhaps also coming back with a colander of onsite training youll have for the upcoming year. Maybe this new consultant that we are in the process of now hiring and maybe onboard, 6 months or year from now, whether or not this issue about board Education Needs assessment obviously each board member can and should be asked the question. Whether or not we need another pair of eyes outside looking in and telling us we think you need thistricky question. Perhaps that is why we did hire the firm to help us. Maybe staff has a way ofplease consider these topics and why . Not because they are cute. Board, maybe you need to improve your process. Thats a good comment and perhaps one way to incorporate that through the Governance Committee will be soliciting input from your top staff and maybe consultants is to both Education Needs and opportunities and needs and incorporating that into the report. Maybe thenour survey results coming through you so filtering emphasize. I think perhaps staff is talking to us and want us to understand something because if we wind up acting or voting on it, maybe staff wants to encourage by the way, you only have so many hours a year on education, maybe you ought to prioritize this particular topic. That is what i meant to say and wasnt clear enough. I agree with you. Exactly right. Okay. Hopefully alison you understand that and your folks should feel welcome to make suggestions to the board. Thank you. That includes you too, janet. Alright. That is excellent. Next slide, please. Next slide, please. We should be on slide 10. There we go. We need to go back one. There we go. Okay. Alright. Aside from the Education Needs assessment, we have asked the consultant to assist with a every other year governance report, beginning in 2022, so we are ready for one surely and you will be hearing from ashley about the process for gathering information that culminates in a report. Next slide, please. This is ato let you know what is coming up, which is in 2024, we are planning to do this governance report that we are required to do under our contract. Well consult with the governance commitsy in october about the scope of that report. What we intend to cover, and also seek guidance as to priorities that the Governance Committee may have. We anticipate that this report will be both reflective on how things are been going and looking forward to potential improvements in the future. Next slide, please. One consideration that well look at is whether part of that governance lort report it would be helpful to do a board member selfassessment as part of that, and that would involve another survey more input from you all about how you all think things are going from a governance perspective. And we would look at some of your core responsibilities and how each of you view you individually and you as a group are performing. Next slide, please. Ask a question. Yep. In terms of the reports that come back to the board, and shame on me im not sure i remember what [indiscernible] in terms of what we get, in my business, we do a full 360 degree view of with a client or whatever subject matter i think in terms of [indiscernible] green, yellow and red and where the consultant or the subject Matter Expert or who ever is judging or preventing the report, it is like a teacher. We are getting a grade. Do we get that . In terms of peer groups or in terms of the universe you deal with and data you have, the benchmarking against that. The benchmarking against that. I need to put more thought into how i want to present this to you, and ill look for guidance from your staff and from the Governance Committee and from the board president as to what would be most helpful to you. Each organization iswe have about 41 public plans in california and we have hundreds if not sure how many we have across the country, but hundreds certainly, you each have unique governance structure approaches so when you do a benchmarking you want to compare apples to apples and not sure that is necessarily the most beneficial to you, but im open to however this would be most this is all not down in the weeds. Right. Like where we started. This isthis is how you rate us. What is your position how you do that . Im sure we are not the first that ever asked that question. Right. Well try to make it as useful for you as possible. Always nice as a board member to know whether to spend your time and how you are rating in terms of competitors or colleagues. If joe agreessee how we go forward. Yes. And this last slide is really about focusing on the Governance Framework that we look to as assessing effectiveness, opposed to saying are you as good as x other system. Perhaps that is useful or more useful is, are you good at what you are supposed to be doing . Are you meeting your responsibilities with respect to sfers . Not necessarily how does that compare to unnamed or named other systems. Thank you. You can have it best structure but if you dont have the best people you get a mead ocher result. Again, it isit takes not simply the best people and best structure, assuming you have a goal about rate of return and taking care of the members, but you then need to be lead well, which is a group activity, which is always a problem. I want to say simple ways of measuring it. The numbers on performance is easy compared to what you are talking about. What you are talking about is more important then investment numbers. I agree with you, but how to do it will take some time. Thats all we have, unless there are further questions. I have a question because i want to understand clarification. At the first dont, because it is in the verb about what is the do not. It all most reads like the board is not supposed to talk to Staff Members other then ceo cio, but that isnt really what it is. If you request particular consideration. Thats the clause that is important, yes. That is where the conflict starts to occur. Because it occurs later. The same issue on the third page about Board Members directing work based on priorities. Thats where you have to be careful because i think we need to talk to staff. [indiscernible] so we are all working collaboratively together. But, if you think dont talk to somebody it starts erect walls that shouldnt be there. The word nuance i probably heard couple hundred times in the last couple months because of the stuff going on in washington dc. Every other person talking is a lawyer so they say nuance, nuance. I give you a example in my immediate prior job. I had a lot of subordinants and i was told warned when i ask you to do something, assume it was an order. They go, okay, we understand. You want to be polite, but i ask you to do something, that is a order. Around here, the same potential for misunderstanding occurs. If i talk to somebody otthe board of supervisorss, trying to say i am on the board but this isnt a board issue. But it is easy for them to think im speaking for the board, so again, the obligation is to understand how easy to someone listening to us to misunderstand or misproject they think im playing a game and trying to speak for the board. We need to understand how that misperception of people trying to talk to occurs. How do you prevent it short of not talking to anybody, you just have to be extremely careful and say, im not representing the board. Or the system. Thats what we have spokesperson, two spokespersons to do that. Not me. Just clarification what the dont applies to, [indiscernible] trying to show you that the nuances of understanding how to be a good board member. Thank you. Both good points and the sentences are long and complex and every part of them are important, so thank you for pointing that out. Thanks for that grammar. I think the verbs were right, just think you have to read the whole sentence. I think you also hit it, it is directing work is the thing to be careful about when you interact with staff. There is a request it should go to the ceo cio. First, apologizing on behalf of lawyers, love of the word nuance. I have another question for nuance on this. One, some of the discussion i want to clarify. Not in directing work but informational sort of requests is the best practice still toas i understand the best practice is go through the cio, ceo and then that disseminates down to staff . Most definitely. Even if we know who we think is the appropriate staff member . To trustee driscolls point a question sounds like a order and no one should ordering anybody and even shouldnt order the ceo cio unless the board has, but you should speak with mrs. Romano. Even for information request . Yes. Also helpful to refer people to sfers connect if they have a issue about a particular member. Thank you. I guess the only caveat to that and differ to mrs. Romano, the actuarially Services Coordinator is direct report to the board. You could speak to janette for actuarial matters. Good clarification. That was it then. Thank you. Calling inhouse Public Comment on this item. Seeing none, reminder to callers to press star 3 to be added to the queue. Moderator, do we have any callers on the line . Madam secretary, we have no callers on the line. Thank you. Hearing no calls, Public Comment is now closed. Thank you. [unable to hear speaker] we can do it here. Well take a 10 minute break and come [indiscernible] catch up requirement known as rcr year end those earning more then 145k. I believe commissioner thomas had requested actually some raw numbers on the percentage of employees who work in San Francisco that potentially would be subject to the 145k, and that is about 25 percent. I wanted to provide that with this update. As a result, on august 25, the irs released notice 202362. A copy of that notice is in your materials. This noting includes limited guidance concerning the operations of the rcr catch up requirements and allowed a 2 year administrative period. The irs cautioned 202362 is not intended to provide comprehensive guidance on section 603, but Additional Guidance will be forthcoming. In short, with respect how it apply tuesday the sfdcp, the notice provides participants still can make catch up contributions in 2023. When is the [indiscernible] congress has indicated resolutions on this provision via future technical correction legislation. So, 2024 and 2025 tax years would count as administrative transition period and this means that all catch up contributions including pretax would be treated as satisfying the rcr. Even if the contributions are not roth. So, we will share more of these details with the differed Compensation Committee on october 4. We dont expect things to change much implementation wise as it is mandatory and we have already engaged the Controllers Office and currently routing business requirements as we are anticipating a year end implementation, but this condition period simply allows us to ease up on the gas pedal a little, and allows possible consideration of implementation of the mandatory secure 2. 0 provisions not earlier then january 2025. Well discus this more with the committee and get their guidance, but i like to pause here and answer any questions on secure 2. 0 and recent notice from the irs. Any questions . Thank you. Moving on, as you know, the sfdcp offers a selfdirected brokerage account via td amera trade. Assets make up about 1 percent of plan assets, about 52 million. It was announced around two years ago schwab acquisition of tda. All tda accounts will become schwab accounts with new schwab account numbers and schwab login credentials. Participants will have a personal choice retirement account called a p cra where they have access to stocks funds and eligibility investment on the schwab platform. Participants receive numerous communications on this from schwab in q3 as well as reminder and set up notice on august 8 for those who have not already taken action. You can see a copy, a sample copy of the communications provided to you in your materials. As you may recall, equity and etf traded free on the et fx platform. This carries over and in addition thousands of mutual funds will also trade free on schwabs mutual fund one source platform so that is addition for a account holder. More details can be found at welcome. Schwab. Com. Finally, the team and voya have been hard at work in preparing for nrsm in october. Stands for National Retirement security month. Used to be a week and congress made it a month. Excited to announce our landing page, will be live in the coming week and i like to personally invite the Board Members to attend our live session on october 18 at noon at the Sf Main Library across the way there in the latino room. The topic will be 6 tips to avoid retirement fomo stands for fear of missing out, and my birthday. Happy early birthday. Attendees will be given a free prize and a like snack will be served. If you can make this inperson event, you are welcome to attend our weekly webinars where we host a different topic each week. I recommend if you have to choose one, the planning for a lifetime of caregiving on wednesday october 11 as that is a very popular topic among our plan demo graphenings. Many of us are stuck in the Sandwich Generation and this provides tools and insight to help with better planning. Also attachicide the monthly activity report and that is my monthly update. If there are no questions, i like to hand it over now to mr. Ungerman who walk the board through the performance for the first half of this year. Thank you. Jump right in as we are sharing the conitant on the screen. Overall, a very good report. Absolute returns were the opposite from 2022 which was a very painful year for both stocks and bonds. 2023 first and Second Quarter got off on a very strong footing. I included a number of capitaljust going to touch on a couple Capital Market topics to set and look at the active funds in your plan. Page 3 shows year to date column and this is through june 30 and quick observation here is u. S. Large cap really outperformed all the other Asset Classes you see that identified up all most 17 percent for the first two quarters. The russell 2 thousand is small cap stocks in the u. S. , only halfnot half as much. Only up 8 percent. International land, the world exus up just over 11 percent so still very strong absolute results, but emerging markets really pailed in comparison to the developed markets. You see emerging markets want quite 5 percent on year to date basis. That is a important point, because within your active International Funds it is two managers and both have a fairly healthy allocation to the emerging market, which is about 30 percent of the u. S. Equity market. On a fixed income side, nice return, up 2 percent. Recall again in 2022, the bond market really suffered with Rising Interest Rates and was down negative double digits. It bounced back quite nicely in the first two quarters. We show a number of other various different benchmarks, but i wasnt going to persee them today in the interest of time. Turn to page 4 because i think this is a very interesting slide when it comes to style. Recall you guys offer participants both large cap growth and Large Cap Value to choose from and note a fairly significant difference between the two. Recall 2022 value was very much in favor, dramatic outperformance from growth. The wind of faith within style switched and growth handsomely outperformed with the russell 1 thousand up all most 13 percent for the First Quarter and looking at the trailing 1 year results up 27 percent with russell 1,000 value only up 11 and a half percent. Again, a big switch not only for participants but the underlying active managers as they pursue their investment strategies. It is very difficult market to keep up in that setting. The sector is on the bottom you see tech, Consumer Discretionary and are Communication Services up double digits for the quarter as a sector in whole. I think the most interesting slide if you bear with me on slide 5 dissects what is going on and it is the Largest Companies in the world, happen to be u. S. Companies, largest 5 have really driven performance, so when you think of the russell 1,000 growth i just showed you, the awesome return, apple is over 13 percent and put those 5 together we are talking over 35 percent of the index is made up of 5 stocks and they all done really really well. Obviously a lot of different reasons. We can get into those at a later date, but again, it is a very very concentrated Market Driven by the Largest Companies. Again, a very very difficult backdrop for a active manager with risk controls to outperform. With that backdrop, ill turn your attention to slide 8 and look at the market values just to acknowledge a couple things happened during the quarter. June 30, two new target date funds were added as t row price, the custom glidepath manager took over from russell management. You see the 2015 and 2020 fund were added so why there are zeros for the june 30 of 2022 and you can see most of that money came from the 2025 bond as well as the target date retirement bond, which is the caboose of all the target date funds. That represent said about a half billion increase over the trailing year. Stable value the largest fund at roughly a billion and you see target date funds at 900 million in total assets. Target date returns can be found on slide 9 and we show the last half year into june 30 on the far left side and as you go left to right, longer periods are annualized and the two observations which i think are great observations both the absolute return have been fantastic. You see the longer dated funds, the 2065 through the 2045 were up over 10 percent so far this year and they are outperforming their custom benchmarks as shown. That is true as you move left to right over longer time periods. Again, that is a expression of when i look at this, i know a lot of your active funds within the plan, because that is what is utilized in the target date funds have done well relative to respective benchmarks. Slide 10 looks at the core offerings within the plan, and we color coded to try to create a cheat sheet. Green means performing in the top half of the peer group with respect to the style the fund is. You see stable value is in grain across the board and everything one year and greater is annualized. The little number next to the return is the peer group ranking. One being the best or hundred being the worst. All the returns shown on the page are all net of fees. It is really what [indiscernible] again, thats the punchline. A lot of green. Large cap value and large cap growth. You see blue which means third quaur tile and just a few fourth quartile in yellow largely on short timeframes. Again, a very very strong report. We will be taking up the large cap active fund at the dcc meeting october 4 in much more detail. Slide 11. The lineup, youll see the international and i mention the active managers have fairly index size allocations to emerging market. China for instance is the second largest country in the non u. S. Equity world, and that was a negative return for the last year. I think it is down about 9 percent this year so far. That was challenged relative to the peer group, but youll see the performance results are ahead of the benchmark in the period shown. The last page i turn to is page 12 that looks atthese are the component funds of the target date funds that are not accessible to participants. Just custom target date manager. We made some changes to this, so as you might recall, the dfa inflation protected securities and wells fargo which turned short duration had been eliminated so those have been liquidated and redeployed based on t row prices schedule. Bottom line is, these tend to be much more volatile or very specific funds and they generally done a very nice job with respect to their specific mandates and peer groups. Happy to answer any questions, but that concludes my formal remarks. Questions . Good news. Can you talk a little about the ims report and how the committee can use that as a book of reference . Yeah. Behind this presentation theres 150 pages or so. These are all the details. I spend a lot of time looking through these to bring you what is the most important components, but there is all sorts of portfolio characteristics, history, risk statistics and other details on all the funds offered within the plan. It is a bit of a rolodex of all the favorite ingredients, buzz but the presentation is top level specific to net of fee Fund Performance. Good to see what goes into the [indiscernible] we just approved the calendar. Differed comp will be talking about the large Cap Management issues to acknowledge in the report, t row price had good recovery from this year. More to say about that. Other managers as well. We got to look to see how well they are performing over longterm. More detailed conversation will take place at that Committee Meeting and committee will report out. Great. Excellent. Any questions . Comments . You good . Yes, i am. Thank you. Thank you. Should we call for Public Comment . Yeah, please. Thank you. Calling inperson Public Comment on this item. Seeing none, reminder to any callers to press star 3 to be added to the queue. Moderator, do we have any callers on the line . Madam secretary, there are no callers on the line. Thank you. Hearing no calls, Public Comment is now closed. Can we call the next item, please . Thank you. Item 11, discussion item. Report on Investment Performance for Quarter Ended june 30, 2023. Ill share a couple introductory remarks to kick off the conversation. First, i want to acknowledge and thank the team that appears here on this memo you see before you[calling names] for their hard work. There are other names involved. [indiscernible] we brought wilshire on board. What you see in the materials there is a lot of work behind the scenes onboarding a consultant to make sure our numbers flow through their system and reported correctly. The team here put in tireless effort to get where we are today and i want to thank wilshire for their efforts as well. What you see in the presentation today is what i sort of term, step 1, so we wanted to get performance in front of you. There are items to come particularly in areas of attribution and risk. We already discussed with wilshire what those will be but want to make sure they are flowing through the system and correct before we put them before the board. This will be a bit of iterative process but pleased where we are today and able to share this with you. The final comment that i want to make as we go through performance for this period and frankly future periods is that, the performance is absolutely important. It is backward looking and so this is a indicator how we have done. We are doing a lot of work today to figure where we want to go and how to continue to improve and enhance that risk adjusted return. As you know, we will be doing asset liability study. That will impact perform ance. We are doing reviews with mercer on equity fished income Asset Classes and having discussion about the portfolio discussion within the Asset Classes and where we want to lean in and out based oen the market environment. Just wanted to provide that context as we look at where the performance has been to date and it is obviously ongoing effort to look for. With that, ill turn it over to al i. First, i want to thank everyone for the opportunity today to present performance. We have been looking forward to this since selected as your consultant and as mentioned, a lot of work has gone inin a collaborative fashion with staff and getting this deck together today. Also, as mentioned, this is going to be a iterative process in terms of building this report to reflect the information that is going to be very important for this board to consider as they evaluate historical performance. Things like attribution will be forthcoming, and you can think of this as a living document i say for the next 612 months. If there is feedback from the board in terms of things they like to see that is not included in the record we love to hear that because ultimately this board isthis report is for you. In terms of the layout, going to touch oen the market and overall economy. You got a nice summary in terms of performance. Ill try to avoid duplication there. And walk through some of the more salient points in regards to your Portfolio Performance up to this date and happy to take questions from there. First maybe starting on slide 3. You get a review of some of the higher level commentary with regard to the markets in the Second Quarter. Some of this was touched on, but what we have seen is a very stark rebound, particularly for public equities. This started the tail end of 2022 and continued into 2023. What has driven it is a couple items. One, the tech sector benefited from this dramatic interest in ai, and so you have seen a lot of larger cap tech names have substantial positive returns in 2023. The other impact has been the response to the inflation. We have seen more and more evidence the feds seems to be going in the direction of achieving the goal of a soft landing. I think there is still work to be done there in terms of impact of higher Interest Rates throughout the broader economy. Most of these Interest Rate hikes have taken place in the last 9 months good chunk and these rate hikes take time to work through all asspectoffs the economy. I think there a lot to be confident about, still i think it is important to maintain a longterm view, maintain views guided by diversification. Some of the market commentary showed in here in terms ofwhat we have seen growth and value stocks has been significant and so for strategies geared more towards factors, those have been more punished then if you had a growth overfrom a Interest Rate standpoint, the 10 year yield ended around 3. 8 percent as of the end of the Second Quarter. Trading around 4. 25 as of today. We have seen fixed incoming Third Quarter challenged a bit, but what we also have seen is Interest Rate hikes. As of the end of june, markets were projecting another two rate hikes in 2023. So far we have seen one. Based on what we have seen for most of the inflation we have seen included todays, marketing are not predicting anymore rate hikes as of now and they are projecting the first rate decrease as soon as june next year so 60 percent probability of rate decrease in june. No greater then 50 percent probability of using future markets of rate increases so that is a benefit to equity markets. What does that mean for public plans such as sfers . Well, in this type a environment, strategy or portfolios geared towards the Public Markets benefited the best. [indiscernible] headwind. We have seen that with performance over the last quarter year to date, but none of that is a surprise. Ch the expectation always was going to be that private markets were going to write down in line with a lag valuation we traditionally see, but when you couple with the dramatic increase of public equity markets we have seen year to date, that is all most a compounding effect the degree of what that means to your overperformance or underperformance. So, illi got more commentary on the economy in the back of the deck and appendix. Happy to touch on that later if there are questions, but im move forward to talk about your portfolio now. Slide 4 is a review of the Asset Allocation compliance. Again, the guide here is to show where the portfolio positioned as of june 30, relative to the targets and the rebalancing around the targets. There is a couple important points given this is the first iteration of this report. One is youfootnotes with asterisk for public [indiscernible] as you see the footnote highlights a point important in that, those amountsthose ranges and current levels do not factor in any leverage that you may have in the portfolio. That is something we are working with your custodian and bank to be able to add. The positive story and you dont have a lot of leverage at work now anyway, so the pnumbers would not change that much, but wanted to point that out to highlight when we measure compliance relative to Asset Allocation we want to factor leverage used and the policy we are using is your longterm strategic Asset Allocation, which does factor in leverage. You could see that based off that cash at the bottom. The range there is between negative 3 percent and about 5 percent in terms of the range you can have, so that shows there is leverage incorporated in what we are tracking. Future iterations we look to incorporate leverage within this report. In termoffs where you are from a policy standpoint, you can see under public equity, treasuries are below target and you can see outside the range. The range would be the gray segments there, so if you are outside the gray segment, outside that range, should be noted the treasuries earlier this year had a higher degree of exposure due to some leverage you had in play. Staff made the decision to take off that leverage because of the inverted yield curve we have, which we would agree with. You are borrowing at higher cost then yielding so it makes sense to take that off. The result is moving the leverage pushed you to just outside your current treasury range. Private equity, that is labor. You had private equity review i believe last month. That continues to be overweight relative to the policy due to multitude of factors including the denominator effect, what we have seen in the selloff last year, but i would say we have seen that come down. I think you were north of 30 percent at the last report you received, now you are just under 30 percent in terms of the allocation. We will probably continue to see that come down as Public Markets do well and we see continued [indiscernible] page 5 is just a table version of the same information. The one thing ill point out here as well in terms of the third column, the Asset Allocation column. Public equity with overlay is around 32 percent. Private equity allocation just under 30 percent. That is around 61, 62 percent. Target allocation for public and private equity is 60 percent. You do have overweight in private equity that is somewhat offset. You are relatively close to the target of growth assets and that is a important point to highlight. Moving to slide 7, this is the overall performance table, which gives a summary at the total fund and composite level. What you see focus on the first row for the firstSecond Quarter of the portfolio return was 2. 4 percent policy index, 4. 3 percent so under performance just under 2 percent. As we extend out over the last year, you can see more pronounced under performance. The major driver is the private market. Under performance due to the private market while Public Markets rallied in 2023. This is just essentially reversal what we saw probably this time last year in your report where private markets and alternative exposure were additive in value. Nothing to point out of negative, it is more just a byproduct of the fact when you have private market exposure such as sfers does and Public Markets are volatile, you will see tracking as a result of that and this is evidence of that. Another thing to point out on this report with the footnote, you see we have some composites labeled as a width overlay and then some width overlay. The differentiation there is to factor the effects of leverage. Using public equity with overlay as a example, that is the actual market value of the physical assets that you held. When you factor the amount of leverage, around 200 million, that line item essentially assumes if you held all those assets physically. Any differential in return is a way to evaluate the use of leverage within that sleeve of the portfolio and i will point out the nomenclature here is a little bit confusing. One thing that we are going to work with staff is maybe revisiting how we label composites to make it more intuitive going forward. So, what you dont have here is total fund with overlay notional composite to evaluate the efficacy of use. I think that is a important thing to be able to highlight going forward. [indiscernible] yes. It will be in this report. It will be a separate composite. Thank you. One thing in terms of longer term performance, 3, 5 and 10 years you see those in excess of the 7. 2 Percent Discount rate, so that continues to be a good thing to see. Obviously there is a shorter term performance hindered by the private Market Performance as of the last 6 months. Maybe flipping to slide 10, this is your overall total Fund Performance table. Lot of the same numbers here. The one thing i want to highlight on the left is we also included a bench mark that includes more of just a Public Market reference index, which is 60 percent [indiscernible] 30 percent u. S. Ag and then 10 percent private real estate. This gives you a comparative way to also look at the impact of your alternative assets, particularly within private equity and private credit to give you a sense have those been good decisions to take. Overarching analysis is relative to that red line, your policy benchmark and total fund are well clear of that over the 1, 3, 5 and 10 year horizons, so this continues i think the support inclusion of those alternative assets relative to a more Public Market reference index. And then lastly on page 11, two ways to also evaluate your performance using peer analysis. Oen the left is rolling percentile ranking of sfers portfolio relative to public plans of greater then 1 billion and you see a fairly boring all most Straight Line at the top, which is good news in that, your portfolio rank as the top 2 or 3 percent best portfolios in terms of percentile ranking and that continued to be a trend. You see noise in the ranking when we look at shorter term horizons. If so interested in the back there is peer analysis that gives different time horizons but wetened to think long urterm is better. Quick question. If you dont know off hand, it is fine. In the back area, are there listed specific firms in the percentile or in terms of the plans in the universe . Well, specifically the ones that are in our area of the ranking . In terms of public cities like breaking down sure. Typically some of that information is blinded. I dont know if investment metric has those subcategories. Wilshire, we have broken it down like that but we can look into what options has in terms of bifurcating that across more dimensions. Two questions. Along that line. The other dodged a bullet point. They are also Institutional Investors like us, bs meaning are Public Pension Fund . Correct. These are all public pension plans. Does wilshire have ability to put bullets they are Institutional Investors that we invest with them or like them ornot saying they are better investors but we want to improve our policy or risk tolerance we have the ability to do that. That brings up a good point, which is not just looking at the return rankings, but taking face value what peer analysis means. You compare blindly to other plans that have completely different funded ratios, that have completely different portfolio lineups, so it is important to take that into context when evaluating this. The good news is you rank highly and also have a completely different perspective in terms where you stand that have to take more risk and dont have the luxury to take on diversification because the funded status does not support that type allocation. There are significant differences among Institutional Investors. One of the biggest that would not limit us but[indiscernible] two, slightly different question. The triangle represents our policy. Correct. The page before we also started putting in the 60 40 to 60, 30, 10. Whether we should put 60, 30, 10 or concerned about putting there a representative to capture something that is more illiquid. 60, 30, 10 is totally different in terms of liquidity because we are 45, 55. Correct. We do have flexibility to add information to this chart. Adding the 60, 30, 10 is not a problem. Explaining what that symbol represents. Happy to do that. And one thing to note, as part of that, you want to be in the upper left quadrant, so that is good to see. The differential between the circle and triangle is impact of selection, the way you tilted it, not only the Asset Allocation level but also the managers you selected. Everything in the report that we have seen so far indicates positive, especially longterm, shortterm under performance is to be expected in this type environment. We will be adding attributions in future versions and again with a focus on not only looking at the attribution, traditionally the way it has been done, but adding the ability to dissect leverage. We look forward to a future meeting to discuss that as part of our prepared remarks. I will stop there. See if there are other questions. You are not finished with the report . Those are my comments for today. There is a lot more in the deck, but happy to address questions. Ill wait till you get to the end. [indiscernible] my request in the economic and market data, you have the jobs and you have a average hourly rate. The number that i like to look at is the pay roll number because again, all three show something different. Capture how well we are doing in terms ofare people getting the money to consume more . On the market data, the pe number. I didnt see it in the other charts there, because when the pe number gets out high then i ask the question, is it the earnings or the price . When the priceyou know i am telling you what you do. I like to see that chart if you are able to add that. Happy to add that. Thank you. As a first shot at the gate, appreciate your presentation. Thank you very much. Any questions . We are looking forward to comparable charts happy to do that. If i can. Anybody have any questions . Comments . Similar what they put in there when they did the bid. Very highly similar there is one level of detail i think is still work in progress we shall get. Work in progressism very good thank you. You found working with our staff excellent. Has been. It has been a big learning experience as you can imagine, getting to know a brand new portfolio. What i also find it can be helpful for all parties to revisit the reporting, revisit the fees that come from the custodians. It allows you the opportunity to maybe improve upon things you hadnt been focus on. For us it has been a really good experience so far. Good. Good. Any comment . I agree. When you start anew, you can evolve the platform so it takes time, but i think we will be in a great spot. Good. Alright. Like me to call Public Comment . Yes. Inhouse Public Comment . Seeing none, moderator, do we have callers on the line . Madam secretary, no callers on the line. Thank you. No calls, Public Comment is closed. You want to call the next item . Item 12, discussion item. Annual review the security Lending Program for the fiscal year ending june 30, 2023. If i may make a brief comment. I want to give a special shoutout to [indiscernible] who not only stepped up for the prior presentation, but stepped up with respect to this security lending presentation. His day job is fixed income, but he is always willing to help with the total fund level and work with me and others so thank you for that. Thank you alo. Good afternoon commissioners. Alo and i are here to present the [indiscernible] as also noted, alo oversees our fixed income portfolio. [difficulty hearing speaker] joined by mike muguiness and oversees the program at [indiscernible] at the end of the presentation mike will make a few comments about trends he is seeing in the earnings trends within the security lending business and talk about initiatives within their security lending practice. Im going to spend the next three slides given what i think is spectrum of knowledge within the security lending industry and our program for the board by notice the purpose. The purpose is simply to generate incremental amount of income for the plan by lending out our securities and these are securities we hold in our Public Markets portfolios. Treasuries, fixed income security or liquid credit securities and public equity. When we designed the program and history ill talk about in a moment, worked oen the program developing the program at the end of 2019. The board approved reestablishing a program in 2020 and at the time we estimated that we would earn 2. 3 million a year. It is designed to be highly risk controlled, sfers has a security Lending Program all the way up through the gfc and had a bad outcome for a variety of reasons. We were not alone. In particular our cash collateral with the risks embedded within the cash collateral were not well understood. We developed a program with separately managed accounts. We also designed in a way if one of the Equity Securities is lent, we can withdraw from a Counter Party and retain authority which is important for us as we become active in our stewardship as mentioned earlier. Finally, developed a addon to the security Lending Program. We have ability to borrow against the cash collateral as a form of credit in the case of liquidity needs so those are the features of the program. The outcome and alo will talk more in detail and his reward being such a good citizen he gets to present some stuff to you, we earned about 3. 1 million for fiscal year ending june 30 and net revenue, Rising Interest Rates helped our earnings within the security Lending Program. For those of you not familiar with security lending ill talk about what it is. It is Common Market practice where asset owner in this case sfers lends our security. Fixed income, public equity security to a Counter Party and there is a variety of reasons why somebody might want to borrow, but primarily want to short something that can be for alpha purposes or hedging. You note or see later in the presentation that the type of securities in greatest demand from sfers were treasury positions. We earned a little income from that practice. We earn a fee from whomover we are lending to and a little return on the cash collateral. It isnt without risk. Our sources for the borrowing fee and then collateral. There are variety of factors that can impact success or activity within the security Lending Program, first is market demand and allowed last year, the third and Fourth Quarter of calendar year were extraordinarily volatile and saw demand fall off a little bit. As Interest Rates have continued to rise we see increase demand in the treasury portfolio. It is dependent on Market Dynamics and what we hold within our Public Equity Program whether there is demand there. There is a term called, specials, which is high demand securities to short. We own a lot of specials but mostly in the portfolios held in commingled funds. A lot of what we hold for lending is within our passive portfolio. We have a somewhat conventional pool of assets to which to lend and again Interest Rates and spreads of what we can earn. This isnt without risk. As noted, you can lose if the collateral itself isnt invested well. You can also lose if there is a Counter Party failure. We havent had settlement issues, but that could be a form of risk. There is a potential risk for default. As noted february 2020, the board approved revised or new security Lending Program. I noted features here. Importantly, this iswe are indemifyed by bank of new york melon. In case of default. A primary concern in redeveloping security lending is how we mitigate the loss with risk of a Counter Party default. In this case we indim niifyed. Old security Lending Program the [indiscernible] we have been able to put our own guidelines around that which are conservative. They are commensurate with the rules that govern money market funds. Those are the rules we adopted. As noted, we have it the ability to recall security to effect our own proxy voting efforts. I will pause there and before i have alo talk about the fiscal year, any questions about security lending generally or specifically with our program . Commissioner driscoll. [unable to hear speaker because microphone isnt on] if we did then lend a security in one of the portfolios we donelt tell them we are doing that but if they sell a portfolio is that a crisis or problem that takes a day or 2 to resolve . What you described is common practice. They know we lend their securities and our pledge is it doesnt impact buying or selling. It hasnt happened they sell a security and are need to settle in one day. Who ever borrowed is slow to return back that is a settle issue. You can comment how often it happens and the period to cure but it is settlement problem. If there is a delay and the county party cant get that back to us, it is matter of somewhat a litigation becomes a legal matter. In that case routine problem to be expected and there are solutions. Thank you. I wouldnt characterize as routine. I think it runs smoothly, but mike you can comment about your experience with our program or more broadly. I would just say the straightthrough process as soon as your managers [difficulty understanding speaker due to audio quality] as the largest Lending Agent on the street with the largest pool of assets to lend, we very often are able to substitute your security with another lender [indiscernible] if i may add to that. So, mike mike. Mike, yes. Mike, this is leona bridges. I agree you have the largest pool of assets. Have you experienced buyin with county parties of result of the higher risk of not getting securities back . I think buyin, they would certainly take different flavors. We say for instance a lender held a bond one of the [indiscernible] held a bond and it failed today, the borrower failed to deliver the bond back to us and failed tomorrow, we couldb assess that and decide whether we want to try to buy in a security. Meaning, we go out in the market and try to buy it. If the borrower is having trouble finding it and getting a settlement of that to buy it and ship back to us, we may not have anymore luck and by doing that may prolong [indiscernible] by adding another out there in the market. We have a variety of tools at disposal we would use to mitigate that. I can say for certain in the four years i have been working with sfers going back to late 2019 and then [indiscernible] i cannot recall a single instance where we had anything like that happen. I think of any sort of fail we had that lasted more then a day or so so that is how i would characterize it. Thank you so much. Thank you for the questions. If nothing further, ill turn it over to alo to talk about the [indiscernible] good afternoon Board Members. Moving on to an update for the fiscal year 2023, the headline number in terms of net revenue generated by the security Lending Program was approximately 3. 1 million. On average, 5. 5 billion of available lendable securities were available and we had utilization rate of 23 percent. On that 23 percent of lendable securities, which were utilized, the program generated approximately 26 basis points on net basis, and on the overall lendable security available of 5. 5 billion, the Lending Program generated a net return of approximately 6 basis points. As mentioned, another feature of the Lending Program is the cash release facility; which acts as a potential source of liquidity for the sfers plan. [indiscernible] the end of 2022 and beginning 2023, there were cash needs at the end of december and we had preplanned cash inflows beginning of january and we used the cash release facility as a bridge to cover those cash needs. Approximately 30 million of liquidity and cost of 32 thousand representing 10 basis points. Moving to page 8, we can see the trend of annual earnings and since we started this program, the earnings have been in the range between 2. 6 and 3. 1 million in line on the higher end of the expected and underwritten ranges. 3. 1 million for 2023 represent 15 percent increase. There are a number of factors that can drive the amount earned in any given year. One of those is utilization rates, which represents the ratio of securities on loan relative to the overall available securities for lending. The second factor that impacts earnings is also spread levels. How much you own on securities lent out, which is a combination of the lending spread and reinvestment spread. Looking at the utilization rates on page 10, we see that our overall utilization rate for the last fiscal year of 23 percent higher then the expected utilization of 20 percent lower then the prior year of 27 percent. The real story in terms of the increase in earnings for the last fiscal year were increase in reinvestment levels. As we heard in the news a big theme for this year has been increase in base rates which we have seen from the federal reserve. Spread levels increased by hundred percent. This was driven by 160 percent increase in investment spread. Ill skip over 12 and 13. They go into gran ular detail. Page 14 i want to stress our securitylanding program is mature Diverse Program with over 2,000 securities on loan. We have about 1. 2 billion of securities own loan and this is back up with about 1. 3 billion off collateral. We are about 7 percent over collateralized on aggrat basis and have the ability to take in cash collateral and non cash as well. I did mention that on page 15 our reinvestment yield has increased. F looks at the reinvestment portfolio, a couple things i want to call out. This is a shortterm portfolio, 3 and a half months of maturity. A high quality portfolio and as of june 30, roughly earning 5 and a half percent which is significant increase from where the levels were 12 months ago. P we can see the graphically depicted on page 16. Increase in reinvestment spreads. With that, ill pass it over to mike to talk about trends and earnings. Thank you all for the time today. I appreciate it. Certainly as described, the credit spread environment over the past several years has really been up. Revenue story with credit spread widening we are able to increase the amount of money we can make for you based on investment guidelines. The portfolio dynamics changed a little bit and certainly since the Fiscal Year Ended have changed a bit more, and that allows us to drive revenue for you as well. One thing that historically in the past 15 or so years borrowers prefer to pledge securities as collateral. They are already [indiscernible] they are otherwise invest. They prefer to use securities. Well, with the credit spread widening, they have been more interested in using the cash and as a result we see more demand to put that to work, which is a good story with the spread widening. We are able to drive more revenue as well. And then with some of the political outcomes this year in the past few months when talking about the debt ceiling and government shutdowns we are looking at another of those the end of the month, but that is driven some of the rates on shortdated government bonds higher, so again, these are something you hold inside and as a result that is another positive revenue story for you as well. Within our program, we are as i said before, the largest Lending Agent on the street. Security lending is a core business and we invest very heavily in it. So, there is a number really cool things to talk about this year. The first would be the appointment of my new boss who comes to us from goldman sachs. Very well regarded, a number of the traders and the Portfolio Managers here i work with have known her a number of years and excited named as the head of the program after the prior head bill kelly retired. We recently deployed a new cash collateral reinvestment system. So while we were happy with the functionality of the [indiscernible] using well over a decade, it was starting to show its age in some ways and really with new tools we were able to bring in from the aladdin product, we feel we still have point of entry and post trade compliance as well as some other features that are unique to our business and unique to our cash flows that just help us do a better job managing your portfolio. We opened a [indiscernible] in singapore to better serve our clients in the region and as the region is becoming more important to the overall security lending landscape, it made more sense to have another Asian Pacific trading desk open during the market hours to be able to transact. Certainly, [indiscernible] the movement of the u. S. Settlement cycle from a 2 day cycle to a 1 day has a lot of impact to lending as the impact to the recalls we make and things like that. We have been doing a lot of investment in terms of computer connectivity and the way we take and trade files and the way managersyour managers would be able to directlynot so much directly sepd things to us but utilizing the straightthrough processed i mentioned, trying to create best in Class Technology we can to make sure when the switch comes over it is transparent to you just as it is today. Those are the main things i would highlight is the goings on in the program and certainly if there are anymore questions im more then happy to take them. Thank you mike. The amount of securities available for lending is about what we expected three years ago. Utilization rates are about the same and revenue is higher, because of significant higher Interest Rates. Any questions . Two questions. First is clarification. This security lending and impact particularly in the cash borrowed, there is no connection to how the Overlay Program is run . Correct. Okay, good. Now, then on page 7, i want to understand 32 thousand in interest paid. The Cash Management is constant and guess you had other choices or options about if you needed the cash. But this was chosen, so just trying to go to the benefit side. The benefit of borrowing and spendingpaying 32 thousand of interest. Benefit of doing [indiscernible] fair question. Good question. Think about it at the time, it is midyear. We are raising capital from some managers but will not get the capital until a couple days into january, so we have a choice. Do we sell liquid securities to meet the needs or borrow . At the end of december and into january markets were rallying when china opened up u. S. Equity market s were rallying so our view is rather then sell equities to raise a extra 30 million, why dont we take the cost to borrow . That could have turned against us, but in the first 6 trading days of january, the s p 500 was up 2 and a half percent so you can argue by not selling equity we earned 2. 5 on the 30 million versus the cost of 32 thousand. We wouldnt have known that but that was our thinking isunderstanding what the markets are doing and making a choice between a known cost and potential opportunity cost. Okay, good. You are looking at the factor. The best option to do it because you are not timing the market. [indiscernible] just understanding we opened up the tools for you to do that. Thank you. The interest in doing that among peers is really grown since the spring of 2020 when the pandemic began and market values were falling. Capital calls were happening. A number of the clients i work with were selling assets that they otherwise prefer to hold on to, so able to create these solutions for them is something we have been able to do and we shared a number of your peers doing the same sort of things now. Thank you. [indiscernible] sorry to interrupt. I think the mic might be off. [unable to hear speaker] thank you. Thank you mr. Chair. Thanks kurt and alo for a great report and i think this program is doing great. I think the work that anna and the team and everyone put into it in the beginning, it was a heavy lift, but the results were worth it. It looks great and i think doing a great job. I have a couple questions of mike. Mike, i know there have been a lot of banking regulations around security lending and with all the new capital regulations, has that impacted your ability to move securities in and out for your specific program . Great question and in some ways it createdi dont want to say road blocks, but it required different ways of thinking and other ways it created opportunities. For instance, one of the regulations that created a opportunity is some of the leveraging ratios that different types of organizations have to meet. Supplemental leverage ratio would be one of them. As a result, these sorts of Financial Institutions have to hold a certain amount of assets and have to be considered high quality liquid. What are high quality and liquid . The government securities you hold. They are willing to pay to borrow those. That is a way we have seen regulations help us. One of the other ones would be a single Counter Party credit limit. There were only so Many Organizations on the street that have the capital to run this kind of business and do it well and be able to offer the level of indem nifiication and accept a lot of risk we do for you. There are not a bunch of players trading with one another. A single county party credit limit where each firm can only do so much business with another is sort of difficulty. One thing we have been able to do and sfers was one of the first to kind of jump on this and saw the value of it, was some of the different non traditional county parties we can lend to, such as the fixed Income Clearing Corporation that is aaa rated county party. Certainly among the highest rated of all the highly rated ones which is the type of county party we lend to, and that allows us to get another outlet, and come up with another way to put your securities to work for you. So, those are a couple things i can think off the top of my head. [indiscernible] will be coming up soon so that is reporting requirement basically looking to bring more transparency into what we do. We are already complying with a similar sort of regulation, the eu, [indiscernible] we are doing a lot of reporting on your behalf today. We expect that when the fcc rule is finalized there is more or less the same sort of thing. This will be a couple main ones i would definitely want to underscore. Great question. Thank you, because that was the last question i was going to ask was [indiscernible] i was worried about the transparency rule coming out on every transaction and how that impacts your reporting. Looking forward to seeing [indiscernible] as well, so if you keep our team abreast of that. I will be attending meetings on that, so very curious to see the results. Thank you so much. Like i said, it is definitely something we are already doing sort of the eu version of it. The original rules set forth, some is deemed a little bit overkill, which is my opinion, but so whatever ends up in the final rules will be ready and able to support as soon as we have to do. No concerns there. Thank you. Any other questions . Thank you. Alo. Thank you everybody. Thank you to the team. Appreciate the time. Thank you. Madam secretary, Public Comment. Do we have inperson Public Comment on this item . Seeing none, reminder to callers to press star 3 to be added to the queue. Moderator, do we have callers on the line . Madam secretary, there are no callers on the line. Public comment is now closed. Call item 13 please . Thank you. Item 13, discussion item. Chief investment officers report. Commissioners, we had two very good presentations on the Market Trends and performance so ill skip over that topic for the cio report. I will highlight two items one on closed deals and the second on our processes around evaluating risk in a particular esg risk. To start with, it isnt in your material because it happened ben between it distribution of materials and this meeting. Pleased to announce under the newly delegated authority we vadeal that closed and consistent with a process we lay out. We are announcing in the board meeting. Under the delegated authority sfers inest haveed 50 million Insight Partners and 25 million in Insight Partners buy out funds. The funds will be classified as Growth Equity within the sfers private equity port foeio. Moving to our approach to diligence and in particular esg issues. I want to provide the board background. In particular how we monitor these issues on ongoing basis. As you know, and discussed over this past year as we talked about our processes we look to hire managers, we have a very robust process that spans multiple areas of risk. We look at traditional financial risk, look at esg risk which in many cases are Financial Risks and when we look at esg risk we focus on those that have a Material Impact on the potential returns of a fund and we also look at operational and organizational risk. We are always looking at risks relative to the materialalty with respect to investment decision. Once we decide to invest, there are couple things that are important to note. For private market investments, we are typically a limited partner so this means we do not make individual port Folio Holdings decisions, nor do we have involvement in the operation of the companies that fit within that portfolio. That said, we do continuously monitor our Fund Investments and from time to time in esg issue with respect to the manager or to Portfolio Company within the fund may come to our attention. We have a established procedure to evaluate the issue to determine the materialalty of the risk and to engage as necessary with the manager. So, elements of the procedure include asset class staff working with our director of esg to evaluate the financial, operational, legal and Reputational Risk associated with that issue that could potentially impair value. Based on that assessment we document our viewpoint and identify if there are next steps. Next steps could include depending on the situation, further diligence, engagement with a manager for additional information, engagement with a manager to express views on the issue. We may take that into account, the issue with future investments and are as appropriate take the opportunity to inform the board of the issue. So, again i wanted to highlight this to get the board comfortable with the fact that we have a very robust process in place that is ongoing and documented within the organization. Any action we take based on our analysis is dependent upon the materialalty of the issue for the risk and return of the investment and potential risk return that can have on the entirety of the fund. So, i hope that provides helpful guidance. Things do pop up time to time. We do hear from stakeholders and constituents about the risk. We take risk seriously and evaluate in the [indiscernible] with that, ill turn it over to the board for questions. Question on the subject. Is it fair to assume then that you or andrew or anybody on the Investment Team particularly using the initiative if we think there is something in one of our holdings, portfolio, lp arrangements with the gp that initiative is taken by us to contact the responsible group, meaning the general partner or simply wait until a complaint comes in . We listen, so we are monitoring news and listen to stakeholders who may share information. We actively engage with the manager on regular basis to understand what is going on in the portfolio. There is initiative. I know we get a annual report on our proxy voting. Positions we take and how the results. Im wondering, whether or not also at least if it is significant im sure you would make a report the next meeting, but whether or not particularly from andrew doing a lot of work from Investment Teams to report when action was taingen by him or you to contact the general partner. This is what we did. May or may have any results but we did try to do something. I think ill discuss with the team. There are confidentiality issues with respect to private investmentss we have to consider and how we convey that to the board. The reason i say that, not just try toog prove to other people what we do, but im familiar with a woman mrs. Simpson from cal per [indiscernible] they are big believer being engaged and not divesting. What are we doing to report the board isnt aware of all the efforts you and andrew and team are making. Thank you for that question and i think the prime word there is engage and we do engage with our managers and to the extentpublicly traded ecwith aty there is opportunity to engage as well. Thank you. Thank you for that summary of how we are engaging when we become aware of these sorts of issues. I are think it might be useful for the board, maybe more educational going forward, im thinking possibly Investment Committee in the future where we can have further education on a process we have when made aware and how we engage more broadly with established process for engaging rather then getting into specific each individual time. I rather talk about what our policy is and how we engage, especially if there are different classifications of investments. Maybe we engage in a different way but think that is a good education topic for the board. Thank you. Any other questions . Comments . Thank you. I will [indiscernible] mrs. Romano. [difficulty hearing speaker] anything is fine. Public comment. Do we have inperson Public Comment . Seeing none, moderator, do we have callers on the line . Madam secretary, there are no callers on the line. Thank you. Hearing no callers, Public Comment is now closed. Call item number 14, please . Thank you. Item 14, discussion item. Retirement board member good of the order. Comments . Good of the order as far as im concerned, this was a very very efficient meeting and im sure investments are good, but demon struative of the delegation issue and efficiency how the board functions, so i was talkingi would say we gained about a hour and thats not the goal to gain time, but it is efficiency. Okay. Any comments . Board members, before you go to Public Comment, could we ask you to leave behind your confidential folder of hearings decisions . We will do that going forward. Thank you. I certainly okay. Give us a reason why that is a good thing to do . Sure. We are going to insure that they are disposed of properly because obviously these contain confidential employee materials relating to their health and so if you can leave them behind, well shred them for you and know they are disposed of properly. Thank you. Okay. Public comment. Thank you. We have no inperson Public Comment. Moderator, any callers on the line . Madam secretary, there are no callers on the line. Thank you. Hearing no calls, Public Comment is now closed. Motion to adjourn. We dont need a motion to adjourn. Adjournment. [meeting adjourned] nicaraguans for your incredible performance. Muchas gracias. Please, everyone