Board will hear remote Public Comment on each agenda item in the order that commenters add themselves to the queue to comment on the item. Take Public Comment for inperson and people attending did mit remotely opportunities to speak during the Public Comment are available by via calling. Phone number 1 415 6550001 access code 2 662 7125389 access code 2 662 7125389 to raise your hand, press practices are to call from a quiet location, speak clearly and slowly, and turn down your television, radio, or computer. Turn counsel our tv or convert and please note policies along with the codes prevent bad conduct and it is only on matters within the jurisdictions of this body thank you for joining us. Yes. Those would like to speak step to the podium. [off mic. ] sanchez im president of the benefits id like to welcome trustee board member engardio and i want to um, mention that, you know, ive had issues where i had to talk to somebody you Call Customer Service and guess what someone picks up or alleviates a message they get back to you within an hour it is wonderful their service and you might remayor of or become a partner at city hall dont think that it is sent to us you have to file it over here as service to let people know make sure you file 2 here and once again thank you for all you do a great organization. Thank you. laughter. thank you for your comments. Anyone else inperson like to make a comment . A reminder to callers employees star three to be added to the queue seeing none, moderator, any callers on the line . Yes. Madam secretary three callers on the line. State your name. Im kevin that is mc like that all a people of color in San Francisco. And february of 2020 i was crushed between two vehicles by a mentally unstable person and in april of 2021 i applied for the industrial benefits and yesterday owe got an email regarding my declaration of residence. I know that people retired two years after me have gotten their benefits three or two or three weeks ago but the worse system for appeals for hearing for applicants for i dr is 60 months that is the los angeles and San Francisco is twice as long as is second worst place and 4 or 5 times than the afternoon in the st. Patrick for the retirement system the board job to make sure the system runs efficiently and they have an audit of the system to see where why it takes San Francisco employees retirement system so long thats your job at the board to find out why this is happening it is ridiculous people wait three years to get a hearing date for their retirement. I dont understand that this is the worst system in the state of california and you guys need an audit i asked for an audit to see if it is happening you guys are responsible to take care of people you serve. Sir thank you for your call. We have one inperson Public Comment. Go ahead. Good morning. My name is alisa with the private equity were to the im here because the retirement system is with the black stone penn a troy con and singlefamily homes and black stone the largest landowner and this acquisition makes black stone the largest owner in the u. S. With 66 thousand homes this acquisition will harm tenants and in light of black stones crises investors should tell people not not to invest unless has a standard for protecting investigators and renters from reichs evictions and other predatory practices black stones own h pa the largest landowner landlord the report is about complaints from maintenance problems and with an first time of tenants buy their homes and the tenants are paying rents 10 percent higher than than market rent and black stone is is a multi family landlord in 20212022 with the real estate empire 200 thousand units you. 30 seconds and western then since they increased the rent by 34 percent largest than any san diego. The increase at some believes is greater up to 76 percent we urge you to tell black stone not to vest. Thank you. Thank you for your comments. We have another Public Comment . Go ahead. Good morning, everyone and we were here last year my name is fernandez do and for the last two years in the Housekeeping Department and here local 11 im here to urge you to a telephone any investment black stone as as you can see since july 4th over 50 hotels and more have participated outside of the workshops work places we are fighting for our future for the retirement. My coworkers and i go to work everyday and because i unintelligible um, that is for ucla im trying to build a better life. I live from paycheck to paycheck and worried about how to pay my bills each month and fighting for your further for my son i know what my unintelligible and how to fight for what we have. Strikes and boycotts are not good to bus thats why were coming to you, you are responsible for making sure the investments are wise and the ones for the beneficiaries and we have filled contracts about they cant say wiring asking for too much but all a this money theyve agreed to pay living wages we want you to consider a labor dispute we are going to have to keep on going back o going having strikes here and this thank you for your time. Anymore inperson one more. Thank you. Good morning. My name is Crystal Clear you are work as a cook in the restaurant and for black stone i was here on a december to speak before the board. The department didnt contain the space i wish i could move somewhere better but we pay rent i dont make anymore near that much not making enough to afford healthcare. Havent seen a doctor. I make too light to afford the necessaryist but too much for rich. Do you know what that feels like and im asking you to imagine my coworkers hold pick the lines outside of sheraton we want to contracted we deserve the federal unfair labor charges and including disciplining workers and part two in engaging in unlawful activities protected um, union activities. I testify in arizona and San Francisco and california regarding did problems those are the opinions, vote, i, i. And no, no. At the sheraton they know that presents a risk to their investment and over the past 5 probation officers were asking; right have you reached out to black stone . If not because you disagree . About our investments if so what response will have you received . Thank you very much. Thank you for your comments anyone else . Thank you. A reminder any callers press star three to be added to the queue seeing none, moderator, any callers on the line . One more caller on the line. Thank you caller state your name youre too minutes begin when you speak. Good morning this is pie hudson with local 2 and we have been speaking with you for is last several months about the labor disputes in california and San Francisco. The good news that 35 hotels have reached ten active settles with the locals that provide affordable benefits for the staff and workers unfortunately, black stone has been unwillingly to the same standards as hotel and a ongoing pick the lines black stone is as outlier for potential risks. We urge sfers to demand black stone resolve theyre issues for hotel workers. And we are invested in a group that owns the hilton resort hilton 3ik9d the hotel amuses of times protesting low wages notes equally the cost of living and creates potential reputation allies now the las vegas restraining order resort is for sale and the risk for the working for sale price and returns to investors not a policy. And we have asked at appraiser meetings Board Members and abashes deserve to know if the investors have engaged with the black stone managers and what further steps to be taken. Thank you for your comments. Seeing none, moderator, any callers on the line . Madam secretary another caller on the line. Please, state your name and the item s you wish to speak on. Two minutes begin when you speak. Hi, my name is alex sanchez an employee of city and county of San Francisco and last year um, the retirement system allows allowed for military um, Prior Military Service credit if you purchase the credits towards the retirement system. Um, but the retirement calculate online didnt allow or will not take into account the purchase of prior public service. So therefore um, if i pay the amount that im told i would owe i cant get um, a number for what the compensation for purchasing the service. I plan on vesting Service Route and i cant get a number a figure of what the compensation will be for purchasing my public service. Is there some way that um, if can be addressed im purchasing 6 years of military service and costing a considerable amount of the money there is no indication what the compensation will be and i cant seem to get any answers ive gone through any union local 6 theyre working on that. 30 seconds remaining. So im looking for answers please. Thank you. Thank you for your call seeing none, moderator, any callers on the line . Madam secretary, there are no callers on the line. Public comment is closed. 4. Action item approval of the minutes of the january 10, 2024, retirement Board Meeting. I move we adopt the minutes. Second. Thank you moved and seconded. Public comment . Do we have any inperson comments . Seeing none, callers a reminder to press star three seeing none, moderator, any callers on the line . Madam secretary, there are no callers on the line. Public comment is closed. Okay. Moved and seconded. All in favor, say aye. Aye. Opposed . Say nay if for the the motion passes. Thank you, next item. 5. Consent calendar. Action item. Any commissioner want to adopt the consent calendar. Public comment please. Do we have any inperson comments . Fired. Madam secretary one caller on the line. Thank you caller state your name two minutes when you begin to speak. My name is Kevin Mcpherson i see on the applicants get their whole industrial so it is potential to hit the three year park to get mine back you should demand black stone to have their statements expedited so people dont wait three or four years because is this is done in 5 months 5 percent at at minimum minimum retirement on i dr we waited 5 months i waited one month for 52 percent i should have waited 5 months with no tax than to wait one month and 62 percent that is unfair people have to wait and everybody seems to except the people sitting here and myself. Sfoirdz. Madam secretary, there are no callers on the line. Public comment is closed. And madam secretary, call the next item. 6. Investment calendar discussion item. Investment committee report. Thank you. Did we have a vote on the consent calendar. Okay. No, we didnt im sorry, im sorry. My fault. Okay. Moved and seconded now. All in favor, say aye. Aye. Opposed . Motion passes. Now we can move to item 6 on the consent calendar. On the investment calendar. Yep. Thank you, mr. President. This committee was able to meet thanks to the members that attended for the presentation by staff at wilshire an informative time we learned quite a bit and discussing the assumptions rear yard the risk factors and we know that is challenge for quorum and attendance has been, of course, time allotment for a dense meeting want to gratitude to all the members in attending that and gratitude to staff at wilshire for presentations. Great. Thank you. Okay. [off mic. ] Public Comment. Do we have any inperson comments . Seeing none, seeing none, moderator, any callers on the line . Madam secretary, there are no callers on the line. Thank you, here we go none Public Comment is closed. Next item please madam secretary. 7. Discussion item. Proxy voting report. Good morning commissioners um, as is you recall from the update no december there are three pilars for this and round about them visible from right to left in the way it was presented we have coalition and working groups like the p r i and e s g we take into account the matters into the elevation of time managers in terms of strategies how they manage the firms and finding active ownership to influence the outcomes and improve the long terms Financial Market portfolio. Within active ownership three tools engagement engaged with companies, comment letters focused on regulatory and policy matter and proxy voting the opportunity for shareholders to vote on election directors and executive compensation and mergers and proposals made by shareholders to today as we do each year two proxy items the first is a report and review on proxys in the calendar year and the action item recommendation of certain changes to sfers guidelines and im going to turn it over to andrew. Thank you kurt and good morning, commissioners. Um, each year we present a report on general observations from the shareholders during the prior calendar year prior proxy as it is referred to and telling you how sfers voted during that period as well within you are portfolios on the underlying securities and the reports ill highlight a few key aspects so in if we voted on the 14 thousand proposals across the portfolio. This is approximately the same number we voted on in 2022 and a a little bit more than half in the u. S. And canada the rest the answer within europe and china and others markets and the did in general 2023 proxy similar to the prior years and shareholders focused on board accountability and for lack of the Board Diversity and loves director dependence for the compensation which is something the shareholders have been able to vote on since frank similar to prior years and but the number of sales on boats with the voting items called down from the prior year 6 percent. The most notable tour the shareholders on environmental from major shareholders and then also the rise in what people call anti u s b proposals filed by groups that stop or file s g activities typically receive we continue to apply our same guidelines and very much material we vote against is compensation proposals and with miss alignment between the companies and the awards to executives. And we continue to vote against boards with aggregate the lack of diversity or other concerns and last year, we supported half of shareholders proposals were filed and then continue to believe this is a strong mechanism for shareholders to raise material topics ill stop there so the board can see market observations and quantitative details on the record ill be happy to answer any questions you may have. I have go ahead. Ill ask thank you for the report. Um, do you have a sense i was trying to had had research on the environmental side it is very interesting considering the kind of the direction of the global direction and surprisingly what is coming up. Yeah. We conducted market observations we dont quite know um, i think that observers cite one a lot of proposals i understand up getting withdrawn if companies they see resolutions those topics are still raised before they go to vote i think that anti s g backlash a view of some shareholders the consent of the proposals filed is overly prescription for companies or chius to micro manage the board or. off the record. to hard to support those proposals than in prior years and major shareholders explain their rational and others dont. multiple voices . I thought that was very interesting. Kind of a trend we didnt anticipate. Exactly. Can i jump in on that subject 92 . Actions speak louder than words but their actions are starting to be not addressed and franchisee foreclose things like that not all the e s g but some of them im wondering a yes or no do you see that im just, you know kneedeep in it. Within corporate e s g practices . Well yes, sir. The impetus by shareholders is recruits involved 78 that can effect the 14r8dz direction so and as well as the internal partitional people seeing what e s g has done with whatever has been done. Im really wondering. Because im sort of away from it and but involved in looking at it is it as big not as big but moving in the direction unintelligible . I think in general we are seeing strong support for corporate social responsibilities and focus on 19 socalled the e s g with the subsequent or using of terminology in the e s g terminology. But um, i would say in gin phil back in terms of shareholders work for those general unintelligible but the mechanism i guess to board member Bridges Point of shareholders proposals last year no change no support but like i said the anti e s g proposals called into question the value or as suggested by resources put towards climate received very, very low support so um, single digit shareholder support that is the fact that shareholders are recommending Companies Stop those types of activities or focus of their strategy. unintelligible . Yeah. You first of all, some of the companies were voting on because we own the shares with the index funds . Yeah. Okay. multiple voices . Yeah sometimes, it occurs that way. The next question on governance category 2 groups people are not getting the votes the right to do that mayor henderson the management has guess right to do f that have you asked another investors to write a letter or let that . Noted and will effect the future support but weve not multiple voices . Im concerned about that where there is no independent direct i have had you done an engagement on those issues but more importantly the Company Works well without the im wondering all the work and status. Weve not engaged on a single topic like that but in dial with a company a director maybe something we talked to the company about and i think youre alluding to come back a case by case strong indication though our view is in the best practices to have this structure. Okay. A suggestion will be again not im trying to make more work for you but the time we discovered working with kurts team is Gathering Company where the leading director we wanted to vote but notice the performance is down you connect the performance maybe thats where we call our manager im trying trying noted. Thank you. I have a question about some of the shareholders proposals in reading and find more than went to vote but support is there a structural explaintion or a ebb and flow every few years or a change that allows smaller groups to bring less popular proposals to vote . In terms of the number were i filed. More that went to vote offer this last year but fewer. multiple voices. and yeah. Structural a change that loud the less popular issues to get to vote. The sec posture effects that companies are able to presentation to the sec b