Hand sanitize everybody stations are available throughout the building and each elevator and masks upon request at the front desk. Roll call. Commissioner bridges. She will be in late. She is running late. Commissioner driscoll. Present. Commissioner gandhi. Front. Commissioner heldfond. Here commissioner safai will arrive and commissioner stansbury is absent. And commissioner tumlin. Present. Commissioner thomas, present. We have a quorum. First item, please. Thank you. Item 2 communications. Welcome publics participation during comment periods. Will be an opportunity for general Public Comment after closed session. There will be an opportunity to comment on each discussion or action item on the agenda. Each community is limited to 2 minutes. Comment will be taken in sxrn remote by video or call in. For each item will take comment first from people in person. And then for people remote. Comments or opportunity to speak during Public Comment period are available via phone by calling 4156550001. Access code 2481 662 8756. Connected you will hear the meeting discussions but muted and in listening mode only. When your item come up press star 3 to be added to the queue. Best practices call from a quiet location, speak clearly and slowly. Note that policies with federal, state and local law prohibits harassing conduct against City Employees and others during Public Meetings and not be to the ritted. Public comment is per mistod matters went jurisdiction of the meeting body. Thank you for joining us. Thank you, ma dad secretary call the next item. Thank you. Item 3 action item. Rehave you and approval of october 2022, board resolution to continue to meet in person with some members attending remet for 30 days pursuant to california code section 54953e. Okay. Action item is to adopt october 22 resolution recommending the retirement board mote in person with some possibly remote for the next 30 days. To adopt this [inaudible] state legislation codified Government Code Section por95e. Ab361ful including the state and city remain im sorry according the city and city remain in a state of emergency due to the pandemic and conducting moltings. Retirement board and committed in person without allowing certain members to attends remote with [inaudible] risk to the [inaudible] if certain attendsise [inaudible] covid19. And providing all meetings of the retirement board and committees provide an opportunity for members of the public to address the body and otherwise occur in a manner that projects the constitutional rights. Others and members of public attending in person [inaudible] have a motion, please . So moved. Second. And [inaudible]. Commissioner thomas and seconded by commissioner [inaudible]. [inaudible]. Take Public Comment. Please. Thank you we have no in person Public Comment at this time. Moderator, callers if you have not done so press star 3 to be added to the queue. Please continue to wait until the system indicates you have been unmuted. Do we have callers on the line. You have no callers on the line thank you. Public comment is closed. Okay. Motion made by commissioner thomas and seconded by commissioner driscoll. Have a roll call vote. Thank you. Commissioner driscoll. Aye. Commissioner gandhi. Aye. Commissioner held fond. Aye. And mr. Thomas. Aye. Motion passes. Will take a second here. And im going to speak for the board and im nobody is deserving on this. With the governoror talk with the relaxation of pandemic. The board extend thanks and gratitude to staff who cio and her staff and [inaudible] unfortunate and it does change the way we work butt upon point is upon the retirement system has functioned, prospered and except for a few glifrners normal and expected above and beyond expectation of the Board Members. Thank you. I assume you can extend that to the team. Okay. At it time the board will move to a closed session item 4a and a conference with Legal Council on pending litigation. And now go ahead. We ask for a vote to go in closed session. Dom we have a vote on that last item. We did. It is i pending litigation wey need to take a vote to board to invoke the Attorney Client privilege and then go to closed session. Okay. We will take a vote for Attorney Client privilege to go in closed session for the litigation discussion. So moved. Second. This includes 4b the investment items for closed session. From the closed session to closed session, yes. Thank you, joe. So we have a motion to include 4a and 4b. Can we take Public Comment, please. Thank you, no in person comment at this time. Reminder to callers to press star 3. Do we have callers . We have no callers on the line thank you, Public Comment is now closed. Okay. We have a motion made by commissioner thomas and seconded by commissioner driscoll. And roll call, please. Thank you, commissioner driscoll. Aye. Mr. Gandhi. Aye. Mr. Heldfond. Aye commissioner thomas. Aye thank you motion passes. Everybody we will wave the open session and move to closed session were now open for Public Comment. A motion first. Can i have a motion weather to disclose our closed session a and b versions. I move we vote back in open session and in the disclose what was discuss in the a or b. Second. Call the roll. We do Public Comment first and we have no in person public at the moment. Moderator do we have callers on the line . We have one caller on the line. Thank you, caller state your name. Hi. Good afternoon im sascha kraun work with active community together. Thank you. Im sascha kraun and the state policy manager an initial nonprofit dedicated improving the lives of african immigrants in the United States we support voter rights we are here to talk about the affects of your investment in the cim group. Board invested 931 Million Dollars in cim a company stopped to make a prefer with actions mistreated workers in alexander, very well via. In 20 between the cim bought southern towers home to hard working families seeking a better life and known as a safe haven Blue Collar Workers find Affordable Housing that change when cim bought the compledge cim claims they are community focused, actions made it clear they would contribute to the displacement of work class families than provide stable and safe housing. Other lonned lords stopped fileinglyi verifications cim filed 500 properties bought with federal upon funds cim violated federal law. Despite. Tenanters facing maintenance issues and rent increases. Ir bring this to your attention you have a duty to your pensioners to invest their money responsibly. With the violations of behavior im asking to you consider weather your investment is in line with your duties for public. Wheys trust you with their money. We ask you dont invest with them in the fufrment thank you for your time thank you. Do we have further callers. We have one more caller on the line. Thank you. Caller, state your name. Good afternoon im [inaudible] in professional 21 i applied for disability retirement. [inaudible] [echo] decision on my application i did notice in the past 12 months only 75 applications that i received a hearing not including [inaudible]. Thats an average of 6 a month. Something over 3 years. According to a june 12 Department Director [inaudible]. Regarding disability application process, i should have received my readiness 7 months ago. According to that statement when i received that deal or [inaudible] did in the add weight until the hearing officer makes a decision even if i receive this deal i would not receive the decision until month 25 i suspect i will not receive it soon. Over 2 years before a decision. My question is how many retirement applications are in the queue and 6 applications a month to a hearing officer [inaudible] number of applications submitted each month. Do more need to be hired. Thank you thats all i have to say. Thank you. Caller. Moderator are there further callers . No further callers, Public Comment is closed. Vote is in order as to disclosure. It seconded. Commissioner bridges. Aye. Commissioner driscoll. Aye. Commissioner gandhi. Aye. Commissioner heldfond. Aye. Commissioner thomas. Aye. Thank you we have 5, motion passes. Okay. Item 5 now, right . Yes. General Public Comment. [no audio] we have know [inaudible] herrer winer for general Public Comment. [inaudible] [inaudible] transparency and accountability shelter by the layers of limited Liability Corporation in addition there is regulation, can avoid responsibility in the case of environmental disasters. [inaudible] returns, there sift risk of break down of the investments out kroi and with our portfolio suffering. If that [inaudible] was seen to scrutiny appropriate divestments and counter balance equityys stake hold and components. As a beneficiary this is a constructive comment. [inaudible]. Okay. Thank you. We dont have any in person public at this time of callers if you have in the done so, press star 3. Are there callers on the line . There are no callers on the line thank you. Public comment is closed. For the record, commissioner safai joined us we are on item 6. Wrap it up and go and take a break at 1 oclock commissioner thomas [inaudible] at lunch at 1 00 that was what requested. But it is a bit late. We could request we break at 1 oclock we have a call waiting to jump on at lunch. Okay. That is late but we can try to accommodate that we will not do this every time. The one time. Okay we have a quorum commissioner thomas. Okay. Lets finish this item do item 6. Im item 6 action item. The september 15, 2022 retirement board meeting. Motion on that . I move adoption of the minutes as submitted. Second. Moved and seconded. You want to have Public Comment. Thank you. We have no in person Public Comment. A reminder to press story 3. Moderator, do we have callers . There are no callers on the line thank you. Public comment is closed. Get a vote on the motion. Yes, commissioner bridges. Aye. Commissioner driscoll. Aye. Commissioner gandhi. Aye. Commissioner heldfond. Aye. President safai. Aye. Commissioner thomas. Aye. Thank you we have 6 ayes motion passes. Now im passing the gavel to president safai on item 7. Thank you. This is an action item [inaudible] consent calendar. Move to approve. Move to approve by commissioner safai is there a second. Seconded by gandhi. We got a second, thank you. Madam secretary. Lets take Public Comment. In person first and open up the lines thank you. We have no in person public at the moment. Approximate press story 3 to be added in the queue. We have no callers on the line. Thank you. Public comment is closed. Public comment is closed. Madam secretary, a motion made and seconded we will take a vote. Commissioner bridge the, aye. Commissioner driscoll. Aye. Commissioner gandhi. Aye. Commissioner heldfond. Aye. President safai. Aye. Commissioner thomas. Aye. Thank you, weave have 6 ayes motion passes. Great. Um item 8 is also an action item recommendation to issue request for proposals general v. Consulting service. A motion . I can there is a presentation looks like. Who will. . Thank you. Good afternoon, commissioners. The african [inaudible] request for [inaudible] proposal rfp for general Investment Consulting service the retirement board is authorizeed retain consultants to serve as advisor to the bond. The scope of the rfp for general Investment Consulting service we use the total Fund Investment policy [inaudible] including Plan Investment governors, liability studies, capitol market research. Risk management framework, planning and investment policy development, implementation and oversight. Second, supporting including quarter low performance reporting to the board. And evaluation of the chart, implementation analysis of the chart. Third, training, education to the board. Including the month low board meetings. The process in 20 then and awarded 3 Year Contract which will expire the end of this year. You have been provided a draft of the rfp. The scope of engagement is in tact after review was first [inaudible] cio Alison Romano and head of investment operations we add a few questions to the rfp. If approved we plan to issue the rfp on november first with a dead line to submit response on december 15th. The semi finalist will present to the board in the beginning of the next year. With that id like to give a recommendation on issue it for the general consultant Investment Services to the board. Any questions from commissioners. I have a procedural question since there are you 2rfps. Not about yet roles are split but will there be 2 sets of interviews . One consultant is board interview. And it is other wife board for the Public Markets we dont plan to bring it to the board because it is staff consultants. Any other questions. No. I have no problem proposing that thank you. Anyone else other questions . Any comments . I add [inaudible] project difficult to understand]. Position to get the service you need that [inaudible] the course business we do this the cycle of existing contracts and the key points. Great. Is there a motion . Motion to adopt rfp for general Investment Consultant service. Second. Motion made by commissioner heldfond. Lets take Public Comment. Thank you other we have no in person Public Comment at this time. Press star 3 to be added to the queue. Do we have callers . [inaudible] i want to make a question besides the question about the significant change in our process. I saw a couple times and you did in the say anything. Excuse me for not. I had a comment not a question. [inaudible]. Great. Will we called Public Comment we take Public Comment and come back to you. Thank you, do we have callers in the line. We have one caller on the line. Thank you. Caller state your name. Caller, are you there . Looks like we lost our caller. Thank you. Hearing no further callers, Public Comment is closed. I have a comment. Commissioner driscoll you had a comment . Yes. Perhaps not clear on this change in the process. Splitting the role of the general consultants in 2 roles and leading to 2 consultants i have no problem that was explained to me. The issue the staff was there for only i could approximate the consultant work in the manager selection issue. Is one change. The our Investment Policies there was significant can changes made the left time this contract was approved granted the board approved it after some debate. The changes were written by staff. Of the boardo consultant of the working relationship was changed. All minor changes yet significant. But if the board over 18 months ago was a discussion about trying to change the decision make process the delegation to staff. The committee worked on this for months it never got to the board because of something that happened here almost 18 months ago. Thats what this issue is right in the middle of. I have a problem delegating the selection issue to the staff by letting them pick their consultant without the board participating at all. Therefore, the fact the semi finalist picked for us fineful we interview but they will only pick their own consultant the board be relying on. That change was not sunrise when this was spliened to me. There were until we decide how well dealtigate the Staff Investment decisions we should not do that. Commissioner driscoll if i can add one comment. This is the [inaudible] the wave staff is operating with private [inaudible] and so returning weave staff reviews and we issued an rfp18 months ago and for all private efforts equity and assets. And that was the finalists the rfp was reviewd and approved by the board. And the finalist was presented to the board and accepted by the board. It is no different from Investment Consultants to other classes. And the next item now i can clarify or extend. We did in august of 2020 issued 3rfps for private consultants, it [inaudible] staff did work and came back to the board with recommendations for the given out [inaudible] [echo, hard to understand]. What we propose in the next item is consistent with the private markets by again having staff make a recommendation and the board would approve that recommendation. So the distinction with the 2rfps for the boards consultant we will present semi finalists to the board. For to you interview. But given the Public Market consultant is the staff consultants staff dot work the board has to approve our recommend agsz. There is a distinction that really, really with when we do [inaudible]. It is not the decision is in the deligated to staff. The board will approve those. Between the Public Security market s and private where real estate and assets are done thats a reason i went along with that change. Im trying to avoid staff presenting recommendedations at the board take it or leave it basis which is what this is. Part 2 is not part 1. I understands why you split them but all of the sudden . The board gets to participate in one decision well be department on but not the other one . I would caution that we should stick to the item next 8 and then bring up concerns about other. Item 9. They are connected. Did we get a vote on 8. No. I dont think so. We did get a vote. Im sorry, we are on 8. We need to vote on 8. Gee cant jump ahead in the agenda. Gi thought we had. There was a vote. No, i got i see it. We have comments for item 8. Commissioner driscoll. Other questions . Im speak against part item 9. Or 8 they are split how the cio has been explained the decision one is different than the first. They are connected to me excuse me for speak about them together. Reasoning one of the key component in decision which i have been talking about and trying to improve it as well as everybody else. Okay. So any comments anything you want to add. [inaudible] item 9. Okay. Reupon mind me who made the. Motion by commissioner thomas and seconded by heldfond. Yes. Roll call commissioner bridges. No audio. Aye. Commissioner driscoll. Aye. Commissioner gandhi. Aye. Commissioner heldfond. Aye. President safai aye. Commissioner thomas. Aye. Thank you we have 6, motion passes. Great. Now we are on item 9. Yes. Item 9 action item recommendation to issue a request for proposal rfp for Public Market investing consulting services. Not with standing the objection i will restate what i stated in the prior. As we go through the private market classes in offing 2020 we are recommending the issuance of an rfp for Investment Consulting services for [inaudible]. [inaudible] as described earlier following an rfp process in 2019 awarded a 3 Year Contract. You have been provided a draft of the rfp if approved we plan to issue the rfp on november first if in the earlier with the intent of making a recommendation for the board to approve at our march 2023 board meeting. Happy to answer questions or consider comments. Upon any comments or questions. Fi what we are doing is the process we had in place for you the hiring staff for the private markets. We are following the same procedure here for the Public Market consultant and again it will go to the board for approval. Inconsistency with public and private market you can find the inconsistencies and aline it that way that is incomplete. Thats why i recommend the Board Members not go for this until we improve our decisionmaking press started on almost more than 2 years ago. This is the wrong move im against it though i comment staff doing well and getting returns up. I find it inconsistent not consistent. Any additional comments . I dont want to belabor this. I dont understand the inconsistency he is take time to understand what the issue is. You got a promotion. From procedural perspective on a staff based consultant we are consistent with the markets certainly are different thats why we want [inaudible]. Specific to that class. That has the expertise and knowledge. And again, with any decision to hire a consultant of this importance it will go before the board. Thats my point that makes sense to me. [inaudible] commissioner. Why i will make a motion to approve the rfp issuance. I do like to the issues that commissioner driscoll raising. [inaudible] in my mind the systemic issues and they call on the timing for the ceos opinion after the [inaudible] activities and working out our business at in the weeds. So. If the timing issue and hopefully we can address the issues that the commissioner talks about in [inaudible] as we complete our business. Im moving for approval. Move for approval. I have not heard alison [inaudible] [inaudible] and the director did explain this thats what imented her to do. Thanks. My understandingrothe presentation that the rfp is a timely in that we need to have a Selection Process so by the end of the year and a new contract in place by next year, correct . That is correct. Okay. Commissioner driscoll given nature having to proceed it seem it is like having a process Going Forward and then a decision before the board seems like at least for practical purposes have something forward is there an alternative that would let us meet this requirement . Thanks commissioner thomas for speaking about something that would work. Compromise it has been my experience the people who are practical are most effective in our business it has to do with making moncompetence getting a great rate of return. I can go forward this is not over. Because it has been discussion over a year and a half trying to improve our process delegating more to staff. And all of the sudden this pop3 up this way. Which was not explained to me. When it was brought up. Keep it moving forward and not about any of the contract deadlines i believe there are 1 year extensions built in. It was supposed to be a possible 5 Year Contract. Yes, keep moving forward we have been going side ways. No reflection on all the nonstop work the directors and officers have been doing. This change the way it was done is a bad signal. And there is a missing piece you saw it and voted on and approved the investment policy was changed. Anyway. Of sorry to gospel you a long explanation, yes. Commissioner thomas i will vote, yes but have not given up on trying to make this work better it is big are than this selecting of a consultant to participate in the Public Security selection of managers. Thank you. I will second. Seconded by commissioner thomas. I will say i think find have follow up and clarification transition in leadership. I think you should engage with the new cio off line. And have further conversation busy that. Sounds like this is a consistent practice in the industry. Previous practices that have been in place within this agency. I continuing is good to have follow up conversations and you can report back to the board and we can have further conversations with. The ceo as well. A motion made by commissioner heldfond and seconded boy commissioner thomas. Roll call vote. Did we do Public Comment. Public comment, please. Thank you. We have no no in person comment at this time. Callers if you have not done so press star 3 to be added to the queue. Moderator do we have callers on the line. There are no callers on the line. Hearing no callers Public Comment is closed. Roll call. Commissioner bridges. Aye. Commissioner driscoll. Aye. Commissioner gandhi. Aye. Commissioner heldfond. Aye. President safai. Aye. Commissioner thomas. Aye. Thank you. We have 6 ayes motion passes. Okay. Next how long do you anticipate your presentation being . I can get it done by 1. Or sooner . Yes. Okay. Try it. Go ahead. Perfect. I will be brief and let me know you have questions. I wanted provide a baptist back drop on the markets. Giving anyone who looks in the newspaper or [inaudible] there is a lot of volatility and i want to provide that back drop with our performance. Panama river, my slide it has been a challenging third quarter. [inaudible] everything is downful of the u. S. Dollar. All Public Markets equity, bonds and commodities were down significant low. The last months were correlated. When we dont see here is a lot of volatility day it day. Market up then down. And this is the time in the marketed where Risk Management is key and that is very important for the next agenda item we talk about our process for Risk Management and the report there. Turning to if this downturn on the next slide this. Is the worse we had in the left 40 years i would say that is market that will be difficult for any pension plan with Public Market exposure that is reality of investing. You will see later when we have done to mitigate some risk. It is negative. The manager survey has funds managers on the market. They are looking in estimating this level become to 2008 and concerned about market liquidity. The survase is an indication the training point people get negative but that is the Market Sentiment thap is out there now and the issue if were Going Forward starting to see evidence coming out in earnings. On the next slide it is not what happen today it is what we expect Going Forward. And the market is expecting flat earnings. Im talking by u. S. , domestic markets. And so far the last week we seen mixed earnings. Financial companies are holding back and reserving more. Some staples are making money because of inflation not because they are selling more product. There are other companies calling with surprises. I think it is an indication things will be volatile. Opportunity for active managers to find opportunity in invest in the right names. I think there will be vol tai chi tillity growing Inflation Expectations of earnings. Given all that, i want to highlight 2 areas invest more than the Public Markets and good indicators. [inaudible] this is slide 5. The u. S. Equity markets are cheap but not super cheap. They are not conspire cheap on cash flow measure and slight low cheaper in earnings measure. Thats where well is debate. The market the risk Going Forward or is there [inaudible] to fall. This is where having good managers is important. The next page the evaluations are relative to fixed income. The bad new system to get [inaudible] it does mean that now have a return to yield in fixed income and there is opportunity in the private space and private investments are [inaudible] as Interest Rates go thumb is a greater yield. [inaudible]. Slide 7. These are estimates with exposure that can get evaluations on an among low basis from the debate as soon as we are down 11. 4 as we and based on the [inaudible]. Had negative performance in Public Markets counter balanced by strong returns by credit. Assets and are last month the return portfolio is delivering to providing reciprocation and has positive returns year to date. Key drivers for performance, are exposure and multifamily of [inaudible]. I mentioned the [inaudible] and the private credit pace and absolute return strategies. [bad audio connection]. And fixed income, merchant market debt exposure. The real picture here is there are not big surprises. The managers and the allocation is in line with when we expect based on the way we designed the portfolio. But it is a Challenging Market absolute perspective given the volatility and down trensdz. That is a quick, one other point a quick market over view. I want to provide the person which were vague september 15 of twoot board approved professional victim up to 75 million allocated. [inaudible]. [inaudible]. The v. 35 million in the [inaudible] 17. 5 million in [inaudible] 3 and 17. 5 million in [inaudible] 3. Hopeful low that [inaudible] in the time frame i welcome questions [inaudible]. Okay. No questions well go on recess until 1 30. Public comment. Why Public Comment on go ahead. We have no in person comment at this time. Press star 3 to be added to the queue do we have callers on the line. We have no callers. Thank you hearing no callers, Public Comment suspect closed. Great. Okay. We will go on recess u president safai. Present. Why commissioner thomas. Present. Why thank you we have a quorum. Great. Item 11, the discussion item. Review for sfers total plan we have a presentation. [inaudible]. Ill try to share. Before i share the presentation i would like to expand many thanks to all staff who are aware of everything this is helping in [inaudible] provided inputs to this presentation. And specific things to president ric lee our Investment Officer and public equity [inaudible] touched almost every [inaudible] and provided support for this review. So i will start sharing. Hopeful low that works. I will start with an over view of [inaudible] Risk Management framework for sfers this is the comprehensive framework to review Risk Management which are all connected. Last time i will start with [inaudible] reviewed the management [inaudible] september board pacing plans [inaudible] [inaudible] leverage. Credit facilities, Collateral Management and long are forecasts for our liabilities. That is part of the over all Risk Management framework that we put together. On the right, you have [inaudible] allocations. [inaudible] are to provide liability studies to accept allocations, [inaudible] and it is our we are about it start out 3 year review of [inaudible] liabilities. And that is what steps our risk tolerance [inaudible] [inaudible] allocation review continuous. We are doing rebeens the exposure management as markets move and cash moves. Almost daily. As a result, we look to work with our lucrative assets to have plans and Risk Mitigation actions on the markets. [inaudible] similar to when feeds them to the liability studies. Today we will focus [inaudible] Risk Management, which is bottom up, what do we have in the [inaudible] and how does it come per se to allocation and where we compensate for the risks we are talk. We will review expose urs, review risk objectives. Performance. I wanted to reminds you that each class has a deep dive with internally to when we call risk and strategy reviews and the outcome [inaudible] are in presentation to the board. By each. Remember that our last Investment Community meetings bh we reviewed. Markets and sensitivity it and stress upon analysis. Today we will framework, we worked close low with each class to understandow to manage Risk Management and [inaudible] construction. And last, you look at the bottom the grounds work is done by a lot of analytical tools. I would like to thank the board and to support us to have access to multiple analytical plat forms. Use over 2 dozen analytic providers Research Platforms to analyze risks that are specific to the [inaudible] but that [inaudible] and thats what we [inaudible]. Again i mentioned today we will review risk adjusted performance, Asset Allocation. Review the exposures and active risk and where it is taken and how it has been compensated and the stress test [inaudible] analysis. [inaudible] lets start on page 7. Here, over time we introduced with the support of board consultants and the board, market different asset classes, that lead to diversified [inaudible] and also increased the complexity of this portfolio. And we need to be much more experienced and well versed in more strategies, we will be investment operations and investment risk support ton likewise and monitor those strategies. Where do we stands today . We have [inaudible] and private equity and [inaudible] and public equity competence public fixed income. You see the allocations to raise public equity competence fixed income to other asset classes. This is the importance when i would like to spend time here this is this slide on the top left shows the allocation by capitol. Or here i showed the policy weight to each asset class. On the top right you see risk allocation. Or risk contribution by each asset class. If you see the public equity allocation 37 , it contributes more than half to the risk allocation. On policy portfolio. That is parent part why we feel the resip kigz is important. Look at our private the other number is the black bottom will black behalf 13. 3 this it is an estimate using [inaudible] and analytics of our policy volatility. We sometimed call that number risk appetite. What is the expected volatility of returns annual volatileivity returns. To put in context if we expect 7 return on average, then 2 thirds of the time we expect our returns to be minus 6 less 20 . It entail and as you see on the tail risk minus 20 is the 2 [inaudible] not an expected return. And thats why we daul, risk appetite. That is [inaudible] by the Strategic Asset allocation of the policy portfolio. I like to draw your attention to how you think about asset class and improve them and let larger groups [inaudible] the macro asset classes. Do you expect the bulk of return from gross assets. We allocate most of [inaudible] to gross assets which is public equity and he fixed income this is 60 in capitol but more 85 risk defined. Provide the stain return stroll and as you see, the risk contribution is less than half of the asset weight. And income assets. Public and private credit as well as treasuries are expected to Vice President about 25 of the risk contribution of their capitol allocation. This is the policy portfolio and id like to conclude with similar analysis for the current portfolio. Private equity and he public equitiet total is 60 61 in gross assets and similar allocation to both risks. 85 . We are overly diversified and absolutely trim [inaudible] and the bottom of the page, if you review, this is our estimate of the total allocated to our risk which is higher than policy but in low end with the general guidelines of 12 to 14 and we do expect heightened volatility Going Forward. So, how did we deal with the diversifying allocations and did than i help . This is the longer term view of annual fiscal returns. And you will see that new efforts helped in this fiscal year. The absolutely return provided a good buffer as compared to public equity struggling this fiscal year. Good to comper se this return this fiscal of 22 to gfc to 200ave you saw nothing helped. And these are actual allocations and actual returns. We did not have large are allocations to more than diversifying assets back then. Il skip quarter low returns now to risk adjusted returns. When are we looking at here in first, we try to see how did we do returns and volatility, this year and we will see if it is longer term. And we provide estimates of thenual volatility and returns. We chose 1730 equity bob bench is simple to implement and in line [inaudible] about 12 annual volatility in year. We are compared to pierce. We see that volatility this year while elevated, was below the 1730 [inaudible] and the [inaudible] was [inaudible] also to 7030 [inaudible] you see it more. Comprehensive you receive the longer term 1730 delivered volatility of 30. One . While sfers volatility was 8. 3 and cumulative 20 . Similar results over 5 years and they do conform. I like to dru your attention to the longer term since inception. There is simple low much more complexity in sfers funds however this paid off was in terms ofville tillity and out performing the returns. The policy before you see that through the 12 year returns and was conspire to the bench marks we compare to. And these are going to be simple bench marks as well as peers. This is compared to pop3. And here we could see the one the policy portfolio did out policy as well. The volunteer and as well as return over 1 year the year again and longer term and 10 year is when we are plotting not only the returns are superior and volatility is but almost the classes what stands out is the private equity the volatility submit is 47 we delivered close to 8. The return is closer to 60 and which is you know it is its immrierd 300 over the the market e 85 lent and the equity as well. In general you see that almost each class moved up and to the left. Left less volatility and higher returns. I like to conclude this section with the performance contribution. We are look at fully return versus policy return. And where that Additional Return come from . So then did it come from allocation or selection. Manage selection or within our strategic. Tactical allocation away from policy or Strategic Asset allocation, you see over 5 year its is 310 points over performance most is from manager selection and 19 from allocation. I love to point out this our policy is challenging to beat. The return and volatility. The returns you could see here imply 300 basis points premium for private equity. 150 for private credit and absolute rethaurn is the policy is 90 day Treasure Plus 500 and the treasure dont have much volatility. Over 5 years we have low volatility estimates for [inaudible]. This is the challenging bench america to beat. On return and risk profile. This contribution concludes the first section. Risk and performance. This is exposure by geography for total and you can see we are [inaudible] in margins . Slightly in europe on the total bond. If we open up where we are china and um under weight. Canada and um japan. Next we look at the sector. Industry allocation on the total bond. We are over weight Information Technology. More than 10 but our cross efforts the private and public equity in health care. More than 2. 6 6 . But over real estate because we have a real estate allocation in energy. You see over the last 5 to 7 years. Increase to information, technology and health care and decreasing allingcasion to energy and industrial and financials and real estate. How have we compensated. I like to start with this graph provided by one of our managers in general that is taking Public Markets which you are look at the performance of 2005 technology index. This is the back dromotropic second largest drop and will you see that prior to that, the biotech was down 85 over 3 year period. That puts perspective in our concern performance. Because as you mentioned we have a strategic tilt toward health care. And that these are the numbers. The over weight in health care. And technology. Over one, three and 5 year. For several years. They are less and this is just public equityys the other total [inaudible] number compensated. This analysis come from analytic and uses seckor performance. [inaudible] if you know this performance is over First Quarter 2022, we are concluding evaluations for Second Quarter for private portfolio. You can see that, yes, of the biotech third and health care is was adding to the total performance over longer periods. And Information Technology contributed to the total performance. And [inaudible] next large exposure strategic to china. This slide shows the allocation percentage exposure as well as [inaudible] exposure. Your total 9. Sick of the upon bond allocated to exposure in china through private and public equity or the tune of 3 billion dollars. However that this is since most of the exposure come through public and private equity. We like to review that is a different picture. You simply over low china in public equity helped long returns. China managers delivered [inaudible] and versus 8. 4 global index. Was not additive over longterm. It was challenging over this year. You could see the china manages performed 16 opinion 9 . Versus 17 . 17. 1 of bench mark and total performance, 17 . Next we will move to the next long large exposure our active risk. You see in our risk and performance distribution that most of the performance kim from manager selection. And so we are look here public equity. Due to manage the amount active risk and over the last 5 years we increased the active risk and portfolio and tripled it. And half of this risk is coming from the Strategic Plan and half of this coming from manager specific situated selection. Id like to note and this highlights that while we next active risk, the total risk of public equity performance is in line with policy index. [inaudible] we will see this is these are realized risk over 1 in 10 years. We looked at active risk. We look at not only we trip tele. We see that the bulk of this portfolio active risk is coming from u. S. But allocating more to china. And this is the introduction by sector. We do have strong tails toward it and health care. These are if active risks and taking active risk across all sectors. Next the exposure analysis of reviewing our close and net. This is a little bit apples and oranges but it is important to manage and review it. However, the gross can be summing up equity exposure which is volatile and some of the short term ways or contracts quite a bit you know not that volatile and can contribute the most to the absolutely return gross exposure. We want to make sure we understands where it is coming from and expected, most of the time we gross exposure coming from absolute return portfolio. Im going to skip through public equity and other asset classes. Each class presents deeper details again to highlight 10 of public equity allocated to china. Have china, hong kong and [inaudible] and japan and uk and canada. Large over weights to health care and it to the tune 6 to 7 and other way in financials, staples and energy. I would like treasury portfolio is tracking our index tightly you can see. Liquid credits we changed our bench mark policy bench mark to what i call a third bench mark. Third allocated to investment groups, high yield and emerging markets global diversified index. This is the new liquid policy bench mark. Blue is the portfolio. You see highlights we are shorter duration. Risk than the bench mark. I have the duration [inaudible] the quality the average credit quality is higher than the bench mark. As well as the dwreeld maturity is higher. We are getting a bit on the complexity and a key point. Wonderful review in july i see you could see the exposure here that the team reviewed it as they were all the way to asia. And technology. Versus cambridge bench america. Credit to asia. One thing i would like to highlight here in our private equity credit portfolio that we take much less risk than cambridge bench mark. Capitol preservation is highway for our performance. And get this allocation and often allocate new things separate managed where we save it and guidelines for our managers compared to fund allocation. And different other risk triggers. This help us reduce the risk of credit risk in our credit portfolio. Reduce the risk of our private credit. Real estate this is one portfolio we have over in europe and asia and others if you can see we are well diversified across different property types. Well presented by our team and well diversified. Exposure review return these are not apples and oranges. All funds hedge funds where take much less equity risk and wield that androus it further as well as credit risk. Knowing our private forteverportfolio is mature and reduce exposure in absolute returns as well. And i will conclude this analysis. There are 2 types of [inaudible] they will present. We do many, many more. Some of them are macro top driven we use priority techniques but view with negotiate about when we do our are technical as well as portfolio construction. They are general things. And general of portfolio to shock and equity which is here by msci. [inaudible] and we look at how we sensitivity to currency. As well as correct, sir [inaudible]. Energy and Interest Rate shocks. Quickly open it up 40 downturn in global equity. [inaudible] and projected result in 25 downturn for portfolio most from public equity because of quite high correlation. To world global equity. But allocations to all the classes are projected to support the downturn. We open up further if you have questions help to go through that in detail. Public equity and he fixed income. Any questions . And okay. Just final conclusion here on the historical stress tests. Obviously, the mother of all is the [inaudible] crisis. Left year we added stress test and the this year biotech stress test. Upon almost 31 downturn. And preclude [inaudible]. They put it over here. To make sure we review the framework of the Asset Allocation and Risk Management today the risk and performance strong risk adjustd and longterm performance and elevated risk. Reviewed expose urs substantial of all the way to health care in china. Upon concluded with stress tested should help our portfolio on the stress that we considered. With this, im happy to take questions. I have a couple questions. Commissioner driscoll. I wanted to obviously loaded report you must have worked on it for many hours thank you for doing hard work. This the most important victim function that needs to be performed. Thank you. Trying to explain it all. You said risks throughout this report you mean volatility . Excellent question, commissioner driscoll. Everybody who worked with mow and staff now knows me i never use one measure of risk. Now for the policy, risk define volatility but throughout the report we look at mull pull stress tempt actual exposures and active stress tests and total risk. Volatility is one measure and important measure but frg frequently we never limit our risk analysis boy one measure. Go to page 15. 7030 portfolio when we are not. The 6, 30, 10 put in a year ago to represent a portfolio this is more liquid we are a high plea ill liquid portfolio. Compared to 7030. Right. So it is fir it i this there is ill liquidity premium and we are commending the 1730 is an easy to implement portfolio. You need a staff of 3 people. Versus 23 people we have to implement when we very much it is also the same level. The alpha that come from what staff does is best measures against the policies not 7030 or 60, 30, 10 y. Allocations to private equity and he fixed income and credit. Returns. Which i am not. Which allocate to bench americas that are not investable. Investable with an index we find people to take the money . Absolutely. Right. But starting to go ill liquid how much that relates to over the policy decisions. Thats a good question thats why we have if 5 page in conformance to the policy. Page 25, the change in total funds for the 10 years are volatility was not higher than the policy number. This is obviously change nothing the 5 and 3 that shows improve am based on the allocation mix or recommend agsz for managers. It is i positive change i want to understand it looks significant. Was that clear the difference with page 25 and 23 and 22 . Says the previous 5 years helped. Where the chinks we know have return in private credit im trying to attribute. Absolute than i are i big pos. Policy change reduced volatility. Difference with volatility and the other risks. Why you are correct commissioner, driscoll y. In therms of china, it is on page 38. What is significant of when im reading. You said all the subclasses where about 9. 3 exposed to china . Most of the expose urs are coming from public equity competence private equity. It is 9 of the total in china. Of the total, yes. Im trying to allocate risk weapon dont do normal risk budget on page 38 it shows a quarter of our public equity risk is china versus the u. S. Im wondering is that because of a tilt. Will is that when we wanted to occur . That is simple low the strategic tilt. Um and as you see that is the result of allocation high allocation to china the upon bench mark has about 5. 6 allocation to china. That active risk come forth from the active risk in security selection. Go to page 36 am public equity active risk increase from 85 to 343, and that 5 year performed was that a result of the allocations the manager selection . Is it acceptable ownership something we did not want on happen. It is intended increase in active risk. And allocation to Technology China and biotech. Yes it is within the acceptable ranges we target about 3 with a range of up to 5 of active risk which is in this february public equity define as [inaudible] the volatility exempts the bench mark. Thank you. I know a year ago that this number was around 3 and climbing but did in the set the range. Never voted on it. You are raising it. I wonder photocopy now is the time specify what the range will be. It worked out. Whether or not we need to state so you know what guard rails the team is allowed to function in. It is set up and you mentioned we are reviewing Investment Policies but it it is in current version in investment policy states the 5 number you said . Yes. Up to 5 . Why xouz me for not noticing it. Why thank you. This concludes my questions. Any further questions. Excellent report. Excellent. Thank you. And thank you the team who touched almost every number here. [laughter]. Okay. What . You think after a couple of years on zoom i would figure it out express my gratitude to the staff this is the item i spent most time reviewing i appreciate the presentation it answered all questions. This was an informational item only. Public comment. Okay. No in person comment at this time. Reminder to callers to press star 3 to be added to the queue. Do we have any callers. Public comment is closed. Okay. Next item. Item 13 no 12. Item 12, discussion item San Francisco deferred compensation community report. Hi. The Deferred Compensation Committee met on september 22nd of 2022. The meeting covered the minutes the important piece of approval to retain vice chair [inaudible] the funds manager [inaudible]. This item forwarded to the board today for approval. And i will turn over to our director [inaudible] for [inaudible] discuss item reporting for approval. This is you took the Committee Report . This is going to the rfp . Now we are going in the they are 2 items. Correct. So you made your report. Item then you want to call the item together. Make Public Comment, first. No in person public at this time. Callers press story 3. Moderator, do we have callers . There are no callers. Thank you. Public comment is closed. Are we call thing then and 14 together or just 13. No, both. No. We did 12. It is now then and 14 together. They are separate it is discussion items. Right. I dont know which we were doing. Item 13ful action item. Target date for manager rf p final recommendation. Thank you. Thank you for your time. Chair bridges mention this is to vote to the recommendation to the selected rfp panelling new target date for manager. Over the last 12 mons staff working tierls low on a pdfrfp. With the existing contract that expires the end of this year. The proposes rfp was approved on john 9 and posted the following day. The plan received 8 response in july. Identifies the top 3 in august and conducted semi final introduce in early september. Appreciated upper at the meeting including mr. Kershawens who miss said his preschoolers first day of school as noted all 3 which were price, bernstein and [inaudible] were qualified for the mandate. [inaudible] did in the make the list due to the uncertainty of the future and growth in the targeted business. The plan appreciated working with russell the manager since 2011. After the together date finalists staff brought the recommendation to the Deferred Compensation Committee on december 22 the committee voted to forward the recommendation with approval to the retirement board. Discuss difference in more detail. A little less flexible in prop and did not e will beerate on allocation, nor demonstrate much experiences and alternatives. Bernal teen largest tried get [inaudible]ing grew faster then and there they could handle tried to balance customizations for each client. They are more expensive but qualify exclude did submit the best and final offer. In the event the plan decide instead future, costs would be higher. That well price the upon front runner and firm who dem strited success in active management, tactical allocation and dedication to the business and submitted a very compelling bid with competitive pricing. Most bidders proicide schedules a flat 21 2 bits or flat 3 bit with technical allocation. And offered reimbursement for marketing and communications. Staff conducted an on site headquarters on september 20 in baltimore and completed a positive reference check. I will turn it over to mr. Tailor for an over view of the process approximate provide details on the scoring of the semi finalists. And discuss the removal of russell and the recommendation. Mr. Taylor. Can you please give mr. Tailor control . Please, begin. I cant dot presentation yet. There we g. I will see if i can share. The summary of the respondents we received and the specifics. [inaudible] the commissioners want top go in depth in the rehave you of the process. In short, in this press we wanted to understand i now things about the bidders. Challenges with russell owner help and growth with a small number of clients. We wanted to make sure they had a well resourced system for providing this service. So wanted have consistent client base. Detailed plans for growth. Tenure, property Employee Base and robust system for providing the service. So look for manage a durable partner for the plan. We wanted people to be vpnsive to the nature of Public Sector targeted funds requires anning of the details of the tiers of pension benefits all the things that go to that from capitol modeling stand point as well. When we reviewed the response from this open rfp we have the following comments for the responding. We have from nfp. State street, jp morgan. Russell and, lines and bernal sdpeen price. Propoedz 3 [inaudible] not what we were looking for here. Russell had challenges. We appreciate russells Service History but there were challenges that have related staff turn over and number of positions in the combined through the years. Team is getting loner this happened the same time they were in the fifth year of an 8 year fund. And therefore selected turn over at the firm or turmoil and change. Observed during the course of the contract. In addition, there are senior level turn over. With the departure of the ceo for these reasons are what quality is in the service team and the capitol of the organization, it was deemed they would be a reliable partner Going Forward than i were e lim nitted. Jp morgan provided a response they offer off the shelf funds and a couple of shortcomings. But there is a reporter if you use alternatives liquid real estate woad be on the table for this mandate, you would have to use their requirement not manage we remember look forward to. In addition their pass was not customized. The International Equity [inaudible]. Small number of acounsels and intellectual frame w for analysis that would like low lead to changes relative to the concern based case that would be destructive. And last 56 million [inaudible] had a learning mandate before the assets we looked put them in accomplice were dated 3 31 this terminated 4 1oid they would everwere not responsive we went to a lives strong list of add sunrisors price and bernstein. When we revowed the response as well [inaudible] we have infleck abltd will with state street a difference is combination of team usa there are several team usa working. We had draft comment from the sfga and the draft commentary did in the delve in the specifics as other bernstein or price. Then with respect to alliance bernstein, we had the same complexity of engagement we got from price. But still republican in the same cant answers in which after reviewing the demographics and data provided, they said, well, this may have schedule changes for the income replace am target San Francisco is expensive i would stick with off the shelf. The same point the case for th baseline assumption. So manied to be inadequate responsive to the complexities of the plan and lead to differences in the risk prosecute file and steepness of glide path. And lastly price was [inaudible] price was the least expensive. Of the providers in the bid this remained. The one to support the communications is robustly financial low and with other communication materials, and they have not lost the cline for men yers and have a stable base and invest nothing this business. Further price had authored a series of 4 papers. On the complexities of offering targeted funds in the context of a Public Sector dc plan and how to optimize the paths around risk preference of the cline and also the tiers of benefit from the defined benefit plan. The solution we were looking. They have a clear architecture for how to provide these services. In addition to that, there have been interests in tactical Asset Allocation. And that is manage had process does as an organization. And over 3, five or 10 year period from sense they have been doo this an add multieye Asset Portfolios over time 4 times the fee. That Asset Allocation process is in the specific to the custom target fund but a firm ware press this draws from many resources within the firm. And that prop is implemented firm wide. And as a result, this is in the something resourced but would be the primary engine applies to awful rose multiasset portfolio. So as a result we saw a partner that would be inexpensive. Add robust way. And also have a kin architecture for providing a glide path which did not 32ed a single solution but a range of solutions that being be arrived at in consultation with staff and working with [inaudible] as well. For those reasons we have the i deal winner of the process. Will and they are appropriateed address comments here today. Open for questions and if you want to refer to the potential glide path they are awful drafts and not final. Other asspecific process i can entertain questions. Commissioners . About the glide path design i dont have a page and what was submitted. Not trying to negotiating the fees that is sprit low that is not what this is about. The glide path is an out put. Im concerned about the input meaning the asset all of the classes that we willment them to consider. There were alternatives used the multiple conference which is may be a convenient word but, lot of confusion if we want to include alternatives in the glide path which i do. So. The question is which alternative. It it is a broad word. Do you have doubts what price is able to do in i dont know if i would phrase it in terms of doubts buoy say i have cal braid expectations which is it say when you controversy alternatives i think we are most low concerning ourselves with things like liquid class and that could be hedge funds or private investments. Private real estate. When making investments i say that met of the providers in the space that had implementation of a targeted fund with access to anything other than private real estate. Private equity or hedge fund it is an existing per foal i dont of investments. Either a Big Organization this has a robust staff. A pension such as yourself. In general, there is very few examples. They stand alone contribution flan it is investing in those classes. Likely if you go down this action with success as pertains to hedge funds tell be with the design pension. And the existing managers and prove challenging from sourcing and robustness of investment and time view standpoint. With this said i think it is less a commentary on [inaudible] and more on the asset classes. [inaudible] they would be a Capable Organization of doing that work. In part their organization has experienced with each classes. It is a question of how tell be implement exclude will implement this after engagement. We are capable. Glad to hear that. Not because im for or against. Im concerned in members individual for 57 issue counts not what this conversation is b. Improvements made to the glide path and cape okay of doing it we are able to vote and tell them, the adjustments and risk this is come with it and i dont mean just about issues but not the risk of implementation. Requires a board vote to [inaudible] and you to incorporate those negotiations but it is the design plan to be conducted with [inaudible] to so that was more but you need instructions or plan to do that anyway . My understanding is that potential is known and it is shared as an interest by price. And so with or without an instruction would be my expectation that process would ask the question upon being engaged wlo that is feasible. And under when conditions it would be and from that would flow a series of further discussions with staff to astain approximate terrible cooperation with those classes more brood low or the decisions that would exist without this coprescription and present the range of alternatives and the trade off subsequent to defining the final path. We would like to if we can. But we are not going to do so if it is in the prudent. And so the quell be asked, i know. Already with or without direction. Yes. Board decision. The matter we are voting on is the 2 earlier once hi are on board the design the specific [inaudible] this will be part of in the first discussion about the in the opportunity implement this over time of we know this is something. The vote today this is correct i was going to piggyback the target date we would absolutelies work with the Compensation Committee for your approval and under lying asset classes. We seat end you understand incorporate those in the design phase before than i come become to the board. Understood. It is something we be part of the conversation than i will execute quickly on on this given you heard in some cases they include alternatives. That is a complicated process that requires work. They will do it in a prudent manner and incorporating the discussion and debate is something well have a long staff and [inaudible] with you. Well and i just [inaudible] the commissioner. Involved discussion of this potential. It was a through line throughout the process. It has been top of minds along with tactical and custom to your wagz and a partner throughout. So it would be a huge surprise to mow if we ignored that potential any stage of the design process. Why are we having unnecessary meeting if you are thinking without designful any ahead and do it without the final decision made by board. We dont need a meeting to tell you to do it. Thats what im trying to avoid. I think my understanding of the process is is upon engage am we would then have fact finding meetings with price at which point we have an knowing of the exact dill jenls they need to conduct to astain the decision and report become on the outcome of this process as soon as possible to layout in more information engage am they need with the system. And oaf00 what is possible and when. And so00 eye think that is a natural process i dont think can be shortened because we would not to seek approval to evaluate the classes we begin work. To evaluate the asset classes. Okay. Im assuming you have been and greg diane, you will start approximate any improvements made [inaudible]. Yes. Yes. My understanding and has been my expectation issue commissioner. Any other comments . I wanted it say [inaudible] i feel comfortable make the motion to adopt the staff recommendation. Second. Can we take Public Comment. Yes. We have no in person comment at this time of moderator, do we have callers on the line . There are no callers on the line jovm thank you. Hearing no calls Public Comment is closed. Great. Roll call vote. Commissioner bridges. Aye. Commissioner driscoll. Aye. Commissioner gandhi. Aye. Commissioner heldfond. Aye commissioner safai. Aye commissioner thomas. Aye. Motion passes. Great. Next item is month low report. Discussion item the Compensation Plan monthly report. Had a lot of conversation about that you can keep it thank you. Absolutely. Commissioners buffer is the plans month low report. At the value Fund Increased the crediting rate from 24 to 34 bits 2 envelope rate it is guaranteed for the full quarter and reset in 21. A good example that value is doing intended do preservation of capitol with the steady, positive market return over time. It is good time to point out in a rising rate environment, value crediting rates will lag current rates. Like when rates drop significant cantz low in twenty twenty crediting rates were higher than current rates because of this lag. The under line portfolio increased quarter over quarter. Rising from 3 and a half to 4. 07 . They raised rates. Bonds have an inverse relationship. Who i we saw a year of increase the bond market saw negative returns over all when a 3 month period the crediting rate is left. The other item to report on is nrsm this. Is october, october is National Retirement security month. We had a Great Campaign thus for and executed our first in person accept near in 2019. We brought the live seminar back do you to popular demand and pleased with the turn outism believe the board will be pleased, too. Had near low 60 attendees. And i think before covid we had 80 this is rable considering our existing week low web nears we have. We have louised in person schedules to 3 days a week. Staff is red to answer kwees more details and the Campaign Samples included in the next quarter low report. I want to thank steve for spearheading the efforts and investigation on organizing a vehicleful accept near. He has been working behind the scenes making relationships to help spread word. And left low the machining low activity report covers the asset, performance and participate demographics. Im happy to answer questions on any items at this time. Thank you. Call the next item. Public comment, first. Public comment on that. Thank you. Go right ahead. Call Public Comment. There is in in person Public Comment. Immediateerator. Do we have callers on the line . There are no callers on the line. Thank you. Public comment is closed. Okay. Thank you. I dont think there was a vote it is a discussion item. Next item . Item 15, discussion item chief executive officer report. Thank you. Um this is brief. There are 2 items one standards and materials including the packet in terms of conference and trainings. I dont see a community and i would like to emphasize that i have in the put on the calendar the Committee Meetings that we need to schedule. The chairs were deciding that sends letter to assist all the communities in setting update meetings and ask if there are you city [inaudible] committee in particular [inaudible] reach oust to me [inaudible] they will need to get those calendared. Secondly i will talk about the proposed special trust ordinance. Sure. Good afternoon, commissioners. The special needs trust ordinance would permit all employees to designate as an option beneficiary a special needs trust. Those are trusts this are credited for the benefit of an adult dependant child and the advantage of having a special needs trust as an option for beneficiary is the adult child who received a benefit through a trust like this one, would not have that income counted against for public aid purposes. They would not be disqualified from Public Housing or other public aid programs as a result of getting this income through a special needs trust. Great. Great. Why do we have questions . Yes. Commissioner driscoll. Yes. Not because what was said earlier. That was an among i asked for issues about the [inaudible]. Disability the ido and oid, when they are. New we used to get it i thought it was coming become not every month but a couple times a year . There is a reason we need to do it and apiece the Public Comment we had a couple hours ago but something i asked for, for a couple years. What im seeking, is it clear . Thank you. Great. Anything else. No. Public comment on this item . Thank you we have no in person comment. Do we have callers on the line. No we have no callers. Public comment is now closed. Great. So we can go to the final item of the day i think or next to final. Member good of the order. Commissioner thomas. Thank you, commissioners, we heard some concerning testimony today during Public Comment regarding sfers investments. Cim, i like to ask staff to provide data to the commissioners regarding our scope of investment with cim and assess am of any liability risks in light of when we learn exclude some assess am of esg risk with emphasis on the social. Thank you. Anything else . Nope. All right. I guess we can go to the final item. Or do we do . Call Public Comment. Why thank you. No in person comment. Moderator, are there callers on the line . We dont have callers on the line. Thank you. Public comment is closed. Of great. I think we move to the final which is adjournment. Yes. Adjourned. Thank you, everyone. Clear clear francisco. My name is fwlend hope i would say on at largescale what all passionate about is peace in the world. It never outdoor 0 me that note everyone will think that is a good i know to be a paefrt. One man said ill upsetting the order of universe i want to do since a good idea not the order of universe but his offered of the universe but the ministry sgan in the room chairing sha harry and grew to be 5 we wanted to preach and teach and act gods love 40 years later i retired having been in the tenderloin most of that 7, 8, 9 some have god drew us into the someplace we became the Network Ministries for homeless women escaping prostitution if the months period before i performed Memorial Services store produced women that were murdered on the streets of San Francisco so i went back to the board and said we say to do something the number one be a safe place for them to live while he worked on changing 4 months later we were given the building in january of 1998 we opened it as a safe house for women escaping prostitution ive seen those counselors women find their strength and their beauty and their wisdom and come to be able to affirmative as the daughters of god and they accepted me and made me, be a part of the their lives. Special things to the women that offered me a chance safe house will forever be a part of the who ive become and you made that possible life didnt get any better than that. Whove would know this look of this girl grown up in atlanta will be working with produced women in San Francisco part of the system that has abused and expedited and obtain identified and degraded women for century around the world and still do at the embody the spirits of women that just know they deserve respect and intend to get it. I dont want to just so women younger women become a part of the the Current System we need to change the system we dont need to go up the ladder we need to change the corporations we need more women like that and theyre out there. We get have to get to help them. In 201,755. 7 million passengers traveled through San Francisco international airport. We have on average 150,000 people traveling through the airport every day. Flying can be stressful so we have introduced therapy dogs to make flying more enjoyable. The wag brigade is a partnership between the airport and the San Francisco therapy Animal Assistant Program to bring therapy animals into the airport, into the terminals to make passenger travel more enjoyable. I amgen fer casarian and i work here at San Francisco international airport. The idea for therapy dogs got started the day after 9 11. An employee brought his therapy dog to work after 9 11 and he was able to see how his dog was able to relieve passengers jitter. When we first launched the program back in 2013, our main goal was to destress our passengers however what we quickly found is that our animals were helping us find a way to connect with our pang. Passengers. We find there are a lot of people traveling through the airport who are missing their pets and who are on their road a lot and cant have pets and we have come in contact with a lot of people recently who have lost pet. I love the wag brigade. One of my favorite parts is walking into the terminals and seeing everybody look up from their device, today everybody is interacting on their cell phone or laptop and we can walk into the terminal with a dog or a pig and people start to interact with each other again and its on a different level. More of an emotional level. I just got off an 11. 5 hour flight and nice to have this distraction in the middle of it. We look for wag brigade handlers who are comfortable in stressful situations. I like coming to airport its a lot of fun and the people you talk to are generally people who are missing their dogs. They are required to compete a certification process. And they are also required to complete a k9 good citizen test and we look for animals who have experienced working with other organizations such as hospitals and pediatric units and we want to be sure that the animals we are bringing into the airport are good with children and also good with some of our senior travelers. I think toby really likes meeting kids. That is his favorite thing. He likes to have them pet him and come up to him and he really loves the kids. Our wag brigade animals can be spotted wearing custom vets and they have custom patches. There is never a day that repeats itself and there is never and encounter that repeats itself. We get to do maximum good in a small stretch of time and i have met amazing people who have been thrilled to have the interaction. The dogs are here seven days a week, we have 20 dogs and they each come for a two hour shift. There is a lot of stress when people have traveling so to from these animals around to ease the stress and help people relax a little bit. I think its great. One of our dogs has special need and that is tristine. He wears a wheel around. He has special shoes and a harness and we get it together in the parking lot and then we get on the air train. He loves it. Little kids love him because he is a little lower to the ground so easy to reach and he has this big furry head they get to pet and he loves that. He doesnt seem to mind at all. Probably one of the happiest dogs in the world. Many people are nervous when they travel but seeing the dogs is just a wonderful relief. What i absolutely love most about it is the look on peoples faces, so whenever they are stressed and flying is stressful these days you get these wonderful smile. I am the mom of lilo the pig and she is San Franciscos first therapy pig. Lilo joined the wag brigade as our first pig. Wag brigade invited us to join the program here and we have done it about a yearandahalf ago. Our visits last 1. 5 to 2 hours and it does take a little bit longer to get out of the terminal because we still get a lot of attention and a lot of people that want to interact with lilo. I feel honored to be part of the wag brigade. Its very special to meet so many people and make so many feel happy and people that work here. Its been a great experience for me and a great experience for to toby. Its been an extremely successful program, so the next time you are here, stop by and say hi. Shop and dine the 49 promotes loophole businesses and changes residents to do thirds shopping and diane within the 49 square miles of San Francisco by supporting local services we help San Francisco remain unique and successful where will you shop and dine shop and dine the 49. My name is neil the general manager for the book shop here on west portal avenue if San Francisco this is a neighborhood bookstore and it is a wonderful neighborhood but it is an interesting community because the residents the neighborhood muni loves the neighborhood it is community and we as a book sincerely we see the same people here the shop all the time and you know to a certain degree this is part of their this is created the neighborhood a place where people come and subcontract it is in recent years we see a drop off of a lot of bookstores both National Chains and neighborhoods by the Neighborhood Stores where coming you dont want to one of the great things of San Francisco it is neighborhood neighborhood have dentist corrosive are coffeehouses but 2, 3, 4 coffeehouses in month neighborhoods that are on their own thats tonights forum will give you an opportunity to learn and to be better informed before you vote. The questions for forum were submitted by San Francisco residents. Many of you are in this room as well as community organizations. On your mark, get set [laughter] we will start off with 75 second Opening Statements in alphabetical order. Beginning with brook. I want to welcome the candidates and thank you for participating in this forum. Please, introduce yoursel