We are coming out of closed session and returning to open session. Is there a motion not to disclose . So move. Second. Motion by commissioner driscoll and seconded by commissioner safai. Any members of the public to address the Commission Regarding this item . Seeing none we will close Public Comment. We will take this without objection. Second. Five action item approval of president s committee assignments. Item four. Public comment. General Public Comment. Any members of the public that would like to address the commission . Seeing none we will close general Public Comment and item 5. Eye team 5 approval of president s committee assignments. I asked this to be on the board. We are having officer elections this month which you will see in the next couple agenda items. Because of the movement on the board, i wanted to get the Governance Committee filled so we can push forward and so what i did is just took wherever a commission or commissioner jordan was on governance with me and i replaced her. There will be a meeting at the end of june. If we didnt get this today it would get pushed to probably july or august. Moved as submitted. Motion. Is there a second. I will second the item. Call for Public Comment. Quick question. It is about the Governance Committee . That is the only thing to change. Next month with the new president they will adjust the committees. I got it. A motion and second. Call for Public Comment. Any members of the public to address the commission . We will take this item without objection. Item passes. I will call item 6 abitem 7 together. 6 is election of board president and election of board vice president. Do we have any motions. I would like to make a motion as a ticket to commissioner comn driscoll and commissioner bridges. Motion by commissioner which i seconded. Any members of the public to address did Commission Regarding this item . Seeing none, we will close Public Comment. Any discussion from the board. Remind me how long the term is in. One year. Can we take this without objection. Great it passes. Commissioner driscoll, the gravel is yours. That takes us to item. The approval of the minutes of the may 8, 2019 meeting. Move the minutes. Second. Any corrections or additions or deletions . Any Public Comment . All in favor say aye. Approval of the may 22, 2019 special meeting, item 9. Action item. I make a motion to approve. I second the item. Any corrections, additions or deletions to this item . Any Public Comment . All those in favor say aye. Opposed. That takes us to item 10. Item 10. Action item. Consent calendar. So move approval. Is there a second . Any questions on any matters on the consent calendar . Any Public Comment . Hearing no Public Comment those in favor say aye. Opposed. That takes us to item 11. Item 11 action item recommendation to issue a request for proposal for Investment Consulting services. It has been almost six years since we issued an r. F. P. For Investment Consulting services and four years since we hired with two one year renewals under contract. We ask curt to introduce and walk through the item. I dont have much to add. Staff is asking to approval the issuance of r. F. P. For Investment Consulting services. The last one was in august 2013. In july 2015 they were awarded a three Year Contract for up to two consecutive one year periods. Last june we extended for a year and in may a six month extension. A draft is included in the material provided to you. We are pleased to answer any questions. I would state it is board policy we take these types of contracts out roughly every five years, this is nothing more than a reflection we are bringing it in accordance with the policy for an issuance. I have a couple questions. This is only for the general consultant, correct . I thought we were going to do one of the alternative investment consultants. That will be coming forward. We are trying to break them up so we do not replace them all in the same year. Certainly this is first one through. What is the plan as for whom will score the r. F. P. S . We will find subject Matter Experts, and once we bring or once the Response Period we will bring to the board a report on our plan as to who will score. We will ask the board whether they want us to bring a single recommendation or whether they want semifinalists which is what we typically do. You will notice that we are offering this time for firms to bid on maybe one of three areas that are currently covered by one consultant and certainly a Consulting Firm like any pc could submit bids on all three areas. They are in the r. F. P. We will be bringing back to the board a report on the plan and we will be asking the board as to whether they are going to want to interview. We consider this as a board hire. However, we are as we always have running the r. F. P. The timeline you raised in section 5 approval of the semifinalists. I would like to know who the subject Matter Experts are at least a month before that. Certainly. The proposed are in this r. F. P. So that question is fine for now. Put it on the Public Record naming of the subject Matter Experts in the r. F. P. Is not a requirement but certainly we will work closely with the board and will notify you as to who we recruited. Certainty members of the board may be interested in scoring them. We have to be careful we dont have a majority of the board participating in that and since you are making the decision, certainly as in the past Board Members are free to review in house the responses to the r. F. P. In advance of having them decide on who, you know, they would approve. We will work very closely with the board. My next statement. I know you are very familiar with this. You have been here as long as i have. The role of the general consultant Asset Allocation to the assumed rate of return to the contribution rate is very important. This position is very important. Who will help us select that firm i would like to know and everybody on the board would like to know so it is smart and fair scoring to find the best. This will enter the blackout period when we vote. I will point out on the r. F. P. The three areas where potentially we could have smaller firms bid on just one of these three areas is totally Fund Investment policy and Asset Allocation as a specialized area. Second Public Market investing, which would be more focused on manager research. The third is Performance Measurement and reporting. Now most of you will recall in the private markets we actually hired a separate consultant to do the reporting and Performance Measurement. We are not necessarily saying that is a preference. We are certainly offering that as an alternative and the decisions on whether you hire one or three or two would be in the hands of the board. It is good to have that affirmatively approved even though they are not hired for project work. We are trying. Thank you, chair. I think it is important that we make the subject Matter Experts, make that public a lot sooner, make it open. I think that waits is not a good idea. That opens us to criticism after the fact. That is my experience in reviewing the r. F. P. Usually the scores is challenged and who the people were doing it is challenged. The sooner that is on the record, the better. The waiting or the sme . The subject Matter Expert folks that will be scoring the r. F. P. S. The deadline for submitting proposals is we dont have it on here. It is one month after the date of submission. July 15th. We will issue this. This is june 12th. It will officially public at the end of this month and be due back at the end of july. At the july meeting we will report back to the board who we have been able to recruit and name as subject matter exceptors which is before the deadline for proposals. Before the submission is important. Okay. With that clarification to the timeline, motion to adopt the r. F. P. Is in order. Now call for Public Comment. So moved. Seconded. Any Public Comment on the r. F. P. For general consultant. For the Commission Secretary who made the motion and who seconded it . Cassie made the motion and commissioner bridges made the second. Thank you. I think it is two years. He was naming out who made the motions. It helps. We want be the minutes to be accurate. All those in favor say aye. Opposed. Okay. That takes us to item 12. Action item update to sfers proxy voting guidelines. Members recommend changes in guidelines be consistent with relationship. I will passio will pass it ow to introduce it. Good afternoon, commissioners. As you likely recall at the march meeting, the board approved appointing lewis as our new proxy Voting Services consultant. Following that staff is working to transfer those services from the current provider to glass lewis. Due to differences in definitions and calculations they use to make recommendations for the proxy votes as compared to existing proxy services consultant, a few changes to the proxy voting guidelines which are summarized in the memo and reflected in the attached draft. I note these dont materially change any of the principals on which we vote our proxies or make any substantive changes to the guidelines. They are really reflective to make it such that they can make the correct recommendation to us. Happy to go into more detail or answer questions. I want it clear they dont materially change the specific guidelines. Comments from Board Members . That is a request not a question . The changes may not be material. When there is a change can you put it in red ink . Yes. Motion to adopt is in order before we call Public Comment. So moved. Second . I will second the item. Any Public Comment on proxy Voting Policy . Hearing none, all those in favor of adopting the proxy voting guidelines with the nonmaterial changes police say aye. Opposed that takes us to item 13. Item 13. The quarterly performances for the Quarter Ended the equity market was up double digits and had the strongest start to the year in 32 years. Since then it is back and forth. I will ask curt to introduce the item anal lenwil allen will e weight. You have the march 31st report in front of you. As bill indicated the market is up 1. 5 as of yesterday. It was off 6. 5 in month of may. On an economic front, i wont spend much time on it. There is nothing really different. The material is summarized on page 10. G. D. P. Continues to grow slowly. You can see retail sales sluggish and some of the under be lying data would indicate there are some concerns about some slowing in the economy. The effects of the tax cut were front end oriented and helped in the third and Fourth Quarter. Not where we are today. Unemployment continues to be low. There doesnt seem to be pressure on wage rates so we continue to see very low inflation. There are those that think we are never going to see longterm inflation of much height any more. Indeed, surprisingly, the 10 year treasury backed off during the quarter. There started to be concerns about excess slowdown and need for the fed to stimulate. As of yesterday 10 year treasury is down to 10. 38. We continue to see testing of longterm lows of Interest Rates. That isal lent to asset relevant to Asset Allocation. Todays yield on the 10 year treasury i is a good predictor r the next five to seven years. Neighborhoods of 2 to 3 . Again, equity premiums on top of that gets you to not very attractive expected returns for things like core equity. Snp valuations continuously to be high not as high as they were. This is reflected in the market environment on the next page. A lot of numbers. Those green bars to the right are quarterly returns. You will see that everything was positive in the quarter with one exception private equity. Remember private equity valuations are lagged a quarter. That private equity is reflective of what happened in the Fourth Quarter. You can bet when we are here in june that number will go positive. Everything positive, us equities up 13. 7 in the quarter, very strong. International equity up 10. 3. Core bonds 2. 9. That the generally the environment we expect going forward. Absolute return 4. 6 . That is why it is called absolute return. Real estate fairly nonrobust 1. 6 . When you look at the year, again, you see generally strong numbers. Several areas not nearly as strong. U. S. Equity 9. 6 . International equities for the year not nearly as good as u. S. And negative. Much of which has to do with currency. You buy International Stocks in local currency and see the performance translated through the value of the dollar versus local currencies. In periods of economic distress it bids up the price of the dollar. Then you look down to see a generally positive environment. Skip to the headline page for San Francisco on page 19, that top line again to remind everybody is totally fund return. Net of all fees you paid on time related basis. If you look at three, five, 10 year periods they are all higher than 7. 4 , the assumed rate. In the one, three, five year period while the markets are not extraordinary you have generated more than you need to amortize liabilities through time. Relative to peers. This is about 78 public fundings larger than 1 billion you can see the rankings. You are not at all surprised if i asked how you would have ranked in the quarter with the best equity returns you would remember you would rerisk it and what was poor in if Fourth Quarter would not help you in the First Quarter. If you put together the Fourth Quarter of bad resulteds and First Quarter good results and look at fiscal year today you ranked in the top 3 for one year. Top 2 . Three and five year periods top 4 and top 3 of your peer group. Over a cycle that was extraordinary did you would not expect to have done particularly well in the best up equity quarter in a while. Look at performance versus policy index the second line to remind everyone that is what you would have earned had the staff executed the allocation and kept you exactly allocated the way policy called and hadault of your managers performed exactly at the index level underlying it. To do better your managers outperform the benchmarks or you are allocating in the classes that do well and under allocating in those that dont do well. For a long period of time there is an extraordinary amount of value added by the actions. You will see later mostly through manager selection. For the fiscal yeartodate, you can see all of the results across the chart. Relative to a 6040 which is frequently mentioned. The 6040 Global Portfolio line 3 you strongly outperformed that index over every period except the more rent be quarter. Over five years 7. 7 versus 60 40 of 4. 1 4. 17. If you aplie it to apply it to your cash flow it is value added because you were able to outperform an the index. The risk table is down there the three and five year charts. You can see interesting the five year your volatility was 5. 6 puts you in the lowest third of risk. Reporter with respect to y. Your portfolio was in the bottom 16 . That is not an accident. You have taken a conscience direction from the board to lower the volatility to reduce risk and you see that in the numbers. When you take very good returns on your returns that are strong and the risk is less than peers the measure of risk adjusted return is the sharp ratio. That is the ratio of return per unit of volatility. You can see top 4 over three year period, top 6 over a five year period. The sore tino ratio simply looks at the return per unit of downside risk. Very, very Strong Performance. That is the punchline. Any questions on that i will go through a little bit of attribution and get into the portfolio. Nothing there of a surprise. Continued very, very Strong Performance over longer term periods. An observe. The policy index indicates we are acceptable to taking on more risk . The policy index represents the risk you agreed to take, yes. You could choose by changing your Asset Allocation to take on more risk if you chose to. Or do Something Else . Yes. To the next page this is the compliance page. The second and third column are vol auat the end of mar value in the end of march in percentage terms. The policy is approved by the board. We talked about that before. You do that every three years. The interim policy to the right and some of the target goes like private credit will take you awhile to get through. The interim policy represents where we think we can be at the end of each year. If you look at the current percentages, all of them are within the policy ranges appro