will be a - >> are we ready? >> a reminder that is red light on our microphone indicates your mic is off turn your red light off and speak directly into the president heldfond you may begin the san francisco employees' retirement system. >> call the roll please. 1230i68dz present. >> vice president thomas

presented and quorum is present. >> and can you call the next item. >> thank you item number 2, communications. we welcome the public's participation. during public comment period. there will be an opportunity for general public comment at the meeting after closed session and an opportunity to comment on each discussion or action item on the agenda. each comment is limited to 2 minutes. >> public comment will be take place be in-person and remotely by call in. >> for each item the board will take the comments from people in-person and during the public comment time is available by

calling. >> public comment call-in: 415-655-0001 access code: 2663 414 9768 when connected hear the meeting discussions but will be muted and listening mode added to the speaker line. best practices are to call from a quiet location, speak clearly and slowly, and turn down your television, radio, or computer. please noted city policies with local policies don't permit harassment and only on matter within the jurisdiction and thank you for joining us. >> thank you. >> next item call the next item, please. >> >> 3. closed session. public comment on closed session items. >> okay. we're going to go into closed session and then um -

let's leave open and move into we have an estimated timeframe? >> shouldn't take that long. >> in closed session all right. item? >> president heldfond we are now recording and back to open session. >> roll call. >> xhoifldz 1230i68dz present.

>> president heldfond present. >> 123i68dz. >> board member driscoll we have quorum is present and motion for disclosing or not in closed session. >> not to disclose. >> second and moved and seconded. >> all in favor, say "aye." >> aye. >> opposed? . okay. >> so call for public comment. >> any in-person public comment on this item seeing none. >> callers if you have not done so press star three. >> that's where we're at no callers on the line public comment is closed. >> next item, please. >>

may address the retirement board now. public comment is limited to two minutes per speaker unless the chair specifies a different time. it is limit to two minutes. >> two in-person callers requests i'll call. >> anyone has public comment on this item please stand up to the podium. >> any general public comment [off mic.] >> no item 4 general public comment. >> seeing none, in-person public comment on this item callers. please press star three to be added to the queue pod rapport any callers. >> madam secretary no callers on the line seeing none, public comment is closed. and item 14. >> sorry my fault go ahead.

>> okay. >> next item, please. >> >> 5. action item: approval of the minutes of the november 8, 2023, retirement board meeting. >> move to approve the minutes. >> second. >> moved and seconded. >> all in favor, say "aye." >> aye. >> um, we should have a public comment on that first before the roll call. >> public comment please. >> do we have any in house public comment on this item? >> seeing none, any callers? >> madam secretary no callers. >> thank you. >> hearing no one public comment is closed. public comment is closed. >> moved and >> all in favor, say "aye." >> aye. >> opposed? >> next item, please. >> 6 action item consent

agenda. >> second. >> second. >> okay. do we have public comment please. any in house public comment on this item? >> moderate any callers on the line. >> madam secretary we have no callers on the line. thank you. >> a public comment is closed. >> i motion to convoy >> all in favor, say "aye." >> aye. >> opposed? >> next item, please. >> >> 7. action item: schedule of 2024 retirement board meetings. >> comblirgsz comment on that i want to remind everybody when you speak make sure to take our microphone off mute means no right on that red is on mute in action item just a practice typically the board in december sets the schedule for um, the following calendar year and wherewith we are the board had

approved an 11:00 a.m. second wednesday board meeting there the 5 that is through june so the practice provides you the opportunity should you choose to formally approve a schedule that is again, the second wednesday of every month starting at 11:00 a.m. for the full calendars year of 2024. >> there you have it. >> so- >> possession and mr. president so questions here on december with the vote is there june 12th; is that correct? the board previously approved it there june the vote today, if you so choose for the whole calendar year of december. >> i guess my concern with that

is we our physical year there june 30th and we vet and may change over. so why are we voting for july to december is my question? >> i'm sorry best practice. >> we could. >> just if we wanted to change this because new information we can change this that's right. >> correct this allows us to do to continue with the schedule without making a special meeting and starting at 11 is a special meeting or if you other option to that approve it today and revisit it in march or sometime later on but with another lead. time for the team to prepare it. >> if we approve this we can

still meet. >> in light of that i'd like to move to adopt the recommendation. >> the whole thing is sufficiency. >> going as plan is easier to do it change it or than start. >> public comment. >> i second the motion. >> (laughter.) >> thank you. >> any public comment on this item. >> seeing none, reminder to any callers to please touch star three to be in the cure moderator my callers. >> no callers. >> hearing no one public comment is closed. >> been moved and >> been moved and >> all in favor, say "aye." >> aye. >> opposed? >> next item. >> >> 9. action item: approve executive director and actuarial services coordinator performance evaluation policies.

>> skipped an item. >> a. >> 8. >> 8. discussion item: personnel committee report. >> board member o'connor if you want to add anything to the report it is in the material. >> no nothing. other than great teamwork by the personnel and tried to have transparency and that's why we started this vehicular board for discussion. >> any comments public comment please. thank you. do we have any in-person public comment on this item. >> seeing none, moderator any callers on the line? >> madam secretary no callers our this line. >> thank you public comment is closed. >> madam secretary next item. >> >> 9. action item: approve executive director and actuarial services coordinator performance

evaluation policies. >> commissioners the policies that you see before you were approved by the personnel committee to bring to the board for your full approval and two policies here one sunlight executive director performance valuation in a self investment with the continue the and wanted to incorporate into the policy and like the ac require performances policy we don't have so and developed the corridor policy to be consistent with the executive director policy and the personnel committee had reviewed this. >> commissioners any questions? >> if not, we can have a motion

please. >> move to approve the revision. >> second. >> okay. it's been made motion been made public comment please. any in-person public comment on this item? >> seeing none, reminder to callers please press star three to be entered into the queue. >> moderator any callers on the line. >> madam secretary no callers offender on the line thank you, public comment is closed. >> >> thank you for the guidance of getting in personnel committee fired up again in the motion moved and seconded. >> all in favor, say "aye." >> aye. >> opposed? >> okay. next item please. >> 10. discussion item: chief

executive officer's report. >> two items to update the board on here first, i'll encourage you to review the training opportunities that is sponsored in the materials additional training items not included previously so take a look at that and southerly reach out to us, and, secondly, own a legal matter. i wanted to share some good news regarding a class-action lawsuit that our city attorney discussed in april the system has been a defendant in the carol verse is city and county of san francisco the retirement board and sfers to end in the supreme court alleging age determination and with the disability benefits and following the trail the court issued a final decision in the favor of the city the court held

number one, the chapter are made of by years and didn't direction and two the city didn't in have a contractual obliteration and the retirement physical did not violate the formal has not age of hiring that is good news and certainly we are available if you have any questions. >> any questions? >> ask that the report. >> that's the report. >> (laughter.) >> thank you. >> public comment please. do we have any in-person public comment on this item and seeing none, moderator any callers on

the line. >> madam secretary no callers on the line. >> we have the quorum; right? >> moved and seconded. >> all in favor, say "aye." >> aye. >> and building there is of a discussion item only. >> this was a sdpugs item only so no need to vote. >> okay. (gavel) (gavel) can i (background noise.) in coordination with (unintelligible). >> okay. >> so. okay. >> call the next item. >> next item and now on item 12; right? and 11 and give me one second. >> we're going to do the unusual. okay. 11 and 12 and

we'll do the 12 and you're sitting down and we'll grab some lunch and bring it in and wait patiently for (unintelligible). >> okay. >> let's do call item 11. >> 11. deferred compensation plan calendar: action item investment fee update. >> good morning, commissioners can you hear me. okay? >> all right. thank you. >> thank you very much for your time today, we only have two items on the calendar as indicated is an action item. to move the remaining northern index funds to a new low cost class we are asked to index funds bottle lowest cost. cip share class and since then at the request of staff northern

costs will reduce those for the next funds we have with them a bond index fund and smith cappa memory you see reflected on the screen so demonstrate the lower pricing all as a result greg is here to provide more details and greg can you provide additional context. >> good afternoon it is pretty straightforward continues to be an ongoing evaluation with all your services for invest managers we press the button and get lower confidence so northern trust is adding two more funds to the list to be approved today and table reminds you of with we approved the dollars and those are an annualized number how much the assets applies and a

footnote we didn't do calculation but i asked to custom dates building will be a point one base for those assuming all those get approved for today. >> very straightforward. >> i want to say to make a point the savings stays with the members participating not the fund it is each individual gets to save the money? >> correct (bell ringing) >> okay. >> questions? >> motion is in order please. except the fees recommendation changes. >> got it. >> call for public comment. >> i'm sorry who was seconding

any public comment on this item? >> thank you hearing no one moderator any callers on the line? >> madam secretary there are no callers on the like that. >> thank you, (microphone feedback) public comment is closed. >> been moved and >> all in favor, say "aye." >> aye. >> opposed? . thank you. >> next item, please. >> >> 12. discussion item: san francisco deferred compensation plan monthly report.. thank you. commissioners this is our ongoing monthly report to the full board the attached report is as of lights end of october and covers the money movement for the month and investment performance as demographic information a 3 we're trying to reconcile the data one month lag

in commentary for that the gentleman is here to provide it; however, we're no december and the market has moved forward i wanted to know you're interested in and in for the we can move on to the next update. >> i'll move to question to the fellow commissioners. >> thank you president heldfond in the fertilize the irs agency nounsdz in november the for your contribution limits the regular contributions have increased by $500 to change for the capture amount the normal limits for 2024 be 23 thousand for those underage 50 and offer limit will

be $30,000 5 hundred and special capture a 46 compared to 45 and a flyer for reference and also an interdepartmental e-mail for the 2k3w5i9 keepers for distribution and our contacts across the city including h.r. and dph and many others. um, we count on their support and hope to continue fair market value good relationships so all employees have ma'am, benefits and happy to report the cloirnl were invited to attend a meeting by the comptroller's office and at that meeting hundreds of payroll officers saw the clournldz one team to help with the recognition and to start the conversation. >> and payroll plays a critical role for the employees of their

benefits we concluded a payroll calendar the days the contribution are done from the paychecks a few other remarks i appreciated did boards awareness of how small sfers team we meet the needs of over 34 thousand participants i wanted to acknowledge the hard work and the hurls of four counselors as you can see has joined team and acclimated and chu fluent in chinese is doing in-person meetings on the building and michael and matthew are fluent in spanish we need the is a good bye to jewish last month he moved up to another opportunity and in the process of recruiting the replacement and start a new

year with 5 counselors in the field to support our team and finally attached is our quarterly plan review as of september it has been provided for your reference and our relationship management is here to talk about a few of slides and answer any questions you may have. thank you. commissioners take a few minutes. a couple of things to point out on slide 4 i wanted to point out that is a slight increase in the accounts again for the quarter representing the quarters. and it results in a slight they're in the off one had the percent and that concludes my presentation. on slide 5 that notes a decrease in plan assets based on the conditions that took place in the quartered and need to report

as of yesterday this is up 4.85 billions and the second highest goals since 2021 and more importantly spend a few minutes if you see that slides there is a rather large number on that slide $42. million we spent a lot of time looking at that that number and the activities surrounding it and on average i will tell you the plan as averaged role officers over the quarter we expected most of that due the activists and owe changing the accurate rate and thank to the credit union and the also have an angled population as the plan. further

analysis i think that is three hundred over three hundred participants just 60 have three-quarters and that's the average of 250 or hire and arbitrary it is when i saw this the assets (unintelligible). >> we have been discussing and we'll have further discussions in the week for the plans for 2024 and conducted is the 25ishg9d mailings i should say to stay within the plan and additional talk about targeted communications for preretires to determine a certain age level or and/or criteria length to target those folks in the plan and clournldz in the plan a talking

about the option pertaining in the plan and also from the stand point to keep some level of assets in the plan of this is just a $1,000 keeping that putting that back in the plan as opposed to to closing out their account (coughing) a call next week with the leadership team and the roll i can't imagine many of the role officers are for the staff we'd like to quote that in the discussion as well. >> happy to discuss any (coughing) oat questions rear yard distributions and further slides i want to highlight the data and confirm from the roll officers as well [off mic.] >> any questions or comments from the board.

>> thank you. >> um, one comment the numbers you covered as diane said (coughing) when fees are down that participants numbers are up and basically cashing out all good signs but yet this is more of a committee the board has to agree to yet to develop successes with new clients but if you're mission helping members to prepare for the financial retirement and especially by your staff and finance and start thinking about what our success for all participants to conclude people that work for the city and not yet joined the department. >> any other comments. >> okay. >> right. >> this is a discussion item. we'll have public comment

please. do we have any in-person public comment on this item. >> seeing none, pod rapport any callers on the line. >> madam secretary there are no callers on the line. >> thank you hearing none, public comment is closed and. thank you. >> do do you want to get food or wait one more hour. >> i'll be happy to plow through that. >> okay. >> bring food in here, too. >> we areback. >> resuming open session at that time. >> okay. >> thank you. >> thank you, madam secretary. >> let's call item um, (rustling of papers.)

we're on item >> 13. investment calendar: discussion item report on investment performance of the retirement fund for the quarter ended september 30, 2023. >> thank you. >> sorry we took a few minutes to eat. >> you, you might continue to eat. >> busy we'll try to be effectively and thank you, today we're going to review the third cardiac arrest performance and introduce forming with the second iteration of executive summon and made changes and got feedback from staff and in our initial discussion i imagine will be a process as was work through the report and continue it get feedback we welcome our comments. >> maybe starting on page 2 of

the report as you can see the revamp first couple of slides and yeah page 2. >> whul we're moving forward i think you have the material in front of you page 2 the files give a high list the most important of monitoring the portfolio and some of up-to-date with the performance measures and the states relics as the fiscal year and in terms of some of the high-level bullet points a u m was 3 three and a half billion dollars and 10 year return as of the third quarter

8.4 percentage and positive 66 base points and the benefits as of fiscal year 2024 under 98 percent. you can continue to sfers in terms of the of our 5 years and 10 year rolling performance and as you can see the leverage value no statistic lurch in the portfolio or any leverage was taken off over the last year to no material leverage at play in the portfolio and then the last 4 files to give you you an idea of high-level ranges. and with deeply into those but check boxes and signals to give you an idea of the range for the segment of portfolio and 53.6 percent allocation by points

market an alert there to indicate that your real portfolio is slooifth overweight in terms of range. >> you want to turn on your microphone. >> you guys can hear me. okay? >> good as we go drove on page three we also have some highlights in memoriams of the overall projector to cover the highest and it was negative in the third quarter and judge you about negative one percent was better than 8 percent of peers and saw the rates fell off in the third quarter and impacted those with the higher elevations and lower allocation to the relative of peers and some of the with the positive returns

with the benchmarks and you are slightly changing that the benchmarks returned plus 5 percent to the approval by the board. that has been reflected in starting with the third quarter. >> in the growth area the portfolio private equity delivered alpha and has to do with with the miss matched but outperformed the premium and then in our observation private credited serves for the overall fund return and liquidity credit contributed positive assets return and i'll do a deeding and want to introduce the third quarter market before i do a deeper dive and if we can.

>> move forward to the page 4 those tiles are meant to provide context for moves and specific economic indicators and trend i'll not read all the numbers but make general comments around the interest rate that has been the primary driver certainly of capital market and market expectations for further short time interest rate went higher in the third quarter as is the market invested feds issue of holding interest rates higher than for longer to reduce inflation the inflation rate has moved forward down sitting significantly is about 3.4 percent that rate of 3.71 materially higher than the feds

stated refrigeration rate of 2 percent in the third quarter the any exhibited stronger momentum in j.d. p growth and mod roller-coaster job. >> as we move forward we've seen a reversal i - i mean today, the federal reserve held short term interest rates steady and indicated the potential for cutting interest rate in 2024, three times and the benchmark 10 year treasury moved as 5 percent is currently 2r5id around 4 percent with that message from the feds today and this move in rates lower in the fourth quarter has been supportive of

risk asset prices r6k9 in the next quarters report we think about the economic environment going into 2024 i i think is the important to consider this higher level the interest rates relative to where we remember 12 to 2024 months ago will impact the real economy with a lag and that lag is historically rained from 6 to 18 months or so short time interest rates above 4 percent hss have been in effect for only about 12 months at this point and rates about 5 percent have been in effect for less than 6 months. so those higher rates are moving right into that range of 6 to 18 months we expect to see real economic impacts and starting to see that in higher credit card balances

and increasing diligence we want to be aware and that is an incredible component of u.s. economy and this shifting market environment has indications for the important discussions we'll have around allocation and portfolio management. as you consider our expectations for equity risk premiums are coming pressed relative to the historical expectations there's a lot of moving parts. current risk expectation since it is over one percent relative to the experience of 2 and a half to three percent. we'll discuss all of this in which more detail with the review of our risk exceptions which is, you know, your key building blocks for the

upcoming asset liability study i'll stop to see if any questions? about the economy before i turn it back to ali. >> great. >> thanks tom. >> moving forward in the report page 7 this is the compliance chart. you can clearly see all the classes those gray bars indicate the ranges around the taektsd and the target up and down tart 2 points to hit on our slightly out of cliensz with the treasurer portfolio in this range and that should also factor in our cash allocation has an allocation to short term e-mails you combine those the cash management with that cash account and the treasury

portfolio closer to the target and in the city lose indicated in addition our portfolio is splitting over to the asset allocation ranges and again, you're implementing the strategy implementation several years ago moving forward as part of that implementation real assets we know are more challenging to sell and private assets and have to see denominator last year that infiltrates the private market that is also a factor here we did have skrernz from an allocation compliance but an affirmation with the target and see on page 8 a detailed report of that i'll not cover all the numbers in that a supplemental total information on page 5 and give you more specifics

sophomore those interested. >> um, moving forward to page 14. this is the overall view of profrmgsz i touched on the first quarter returns under one percent. as you can see over the longer than term um, strong absolute levels of return over he three, 5, 10 year numbers absolute returns and asset returns are positive over that horizon and under performance over the recent term has to do with with the private market explore and utilities with the returns given the flux of the public and private market. but again relative to the discount rate and to the reference portfolio which is that mix of 60 percent private and 10 percent private assets as you can see is the portfolio is doing very well over the long

term. moving to page 15 has the rolling percent ranging that gives us where you stand relative to the peers with 5 years metrics the charter ask borrowing it is good you want to be in the same range to the good news you're in that top 5 consistently and looking over the last so. >> on page 16, we also show where you stand relative to the in terms of not only returned but backburg or during the risk and again, positive story be in the european left quadrant and see relative to the peers as best as that relatives to the risk ratio. you can see the public market kind of reference

in mur ran that was a preserve are the public marketability is relative to the deif i had portfolio so again in time past the comparison and the last couple of slides in relation to attribution but to add that we added that in so i'll walk you through this on a couple of pages on page 20 the three years attribution to give the story of what was driver of excess return as you can see in the top left section of the report out performed the benchmark by about

thirty points over that three year period and the top right breaks down to the major consultant the contribution relative to the allocation under or over didn't result in any positive access or over performance in orange the next layer to the degree the individual manages within those are active in nature added value over three years the contribution of 8 base point and in purple the under effects for those are market timing or trading they speak to they suicidal we clawed other people's money on the methodologies of consuming the monthly returns should be a smaller components has nothing to do with with skill or decided except this is a large

sophisticated institutional portfolio that needs to generate cash that leads to performance policy the bottom layer. >> 3. approval of agenda. insight into the drivers of those components by class you'll see in the bottom left over the three years this gives us an activation are you overweight or underweight over three y for example, public equity the average under weighed it three percent over that and conversely private equity is 6 percent over that horizon we factor in the returns over time you can get it green middle table on the bottom. that gives us the attribution by asset class the combination manifested in terms of those you see there they're all smaller which is ideally

what you wanted unless an active view what is the positive we talk about coming from the managers in terms of skill they have and particularly with active management. and for that three year period as you can see that 10 base points of under proposer a mri i do not do of the public exacerbates underperformed relative to our benchmark that resulted in the negative one .3 percent contribution that was offset by outperform with the liquidity portfolio as well as some of the other achievement within the private equity and come sits combine for that contribution. >> slide 21 same thing just in a vulnerable way to see those

effects i'll not walk you through all but, but page 22 the adding of two more years and as you can see over that 5 years the portfolio outperformed by one percent what's the definition between the three and 5 year the major thing is public equity portfolio as you can see under performances was much smaller that negative one .3 was closer to zero led to the stronger out performances the way to read those takeaway the public exacerbates portfolio under performance over the last years the overall portfolio we've seen this year for example, the run up in the negative stokes so to the degree any underweight in the 7 stocks throughout the portfolio will be

the under performance and last year had different dimensions with rate increases and the draw down has led to challenges for management. but overall this will continue to be a report we want to continue to have baselines our comments and materials in the back in the. >> appendixes but with that i'll pause to see if in any questions. >> thank you for the presentation i had a brief question on the area around the slides 14 and i'm sorry 15 and (rustling of papers.)

16 that area. >> my question brown mr. more in the training take it by a grain of salt and here one of the questions about (clearing throat) how you went with the broad category is there a comparison to our plan probably especially with slide 15 a boring slide. >> will explain more if we have a narrower comparison of peers. >> yes. syphiloids i believe you had a similar question in september there are limitation in memoriams of how much you can dissect this universe so for example, we may be able to go to a public planning later on with the $10 billion a better slice of the public plan and happy to

take that feedback and look at other things and come back with several versions of that to ultimately arrive at something that is useful but i'll say regardless i still on the results will be the same given our risk and return portfolio you'll be highly ranked to come up with you. >> thanks. >> i'd like to file open that point though i forgot? weighed by your investors or this goes to the - when the latter pages with the thirty/6010 but 60/40 we run thirty percent liquid i'd like to see a large plan is the similar types of investments

with the liquid department a million dollars plan will not be useful myself in real estate. and get a good feeling it is more repetitive that is will. >> we'll take that feedback and update it given the data that is available to us but your comments are made. >> urging to take the feedback or you'll do it. >> we'll do it. >> i mean a question. um, out of compliance on pages 7 and 8 those are small number is that the denominator effect or i - one is under and one is over it it takes time to rebalance it is a slap on the handicap but triggers to do something? >> thank you for that question and as you recall that is

something that is highland in the fee report and among other things the meetings on that front we go to the asset liability study to case management to total liquidity and that will lead us to where we are we're not concerned b-4 closure we're sitting on cash we think we have is the liquidist and in the spirit of guidelines and probably clarify those as we dot study and on that piece multi feasibility one a denominator effect and done well assets we don't want to for sell the guidelines and draufkz slow down our pacing we get into

risks we're going trying to be thoughtful as we ma'am, misses the risk to the target level. >> agreed out of text you have to understand for a bunch of reasons. then the two columns where the interim is one hundred and three is that proximity a leverage difference. >> correct. >> if we under that amount which based on we will that can make the compliance issue start to change we decided to do. >> yes. i believe that interim benchmark will continue to evolve as we move forward so leverage is one of the components. >> (multiple voices.) >> to you out of the compliance outside that range

needs a small explanation. >> um. >> as for one or two of the relative let me stop are you going to keep on going or - >> then there is observing one of three numbers in the red i'm looking forward to seeing the june 30th report breed into the next level a detail to understand that negative 8 or 6 or whatever it is. >> thank you. >> thank you. okay. any further questions? >> do we have any in-person comments seeing none, moderator any callers on president's line. >> madam secretary there are no

curls on the line. >> thank you hearing no one public comment is closed. >> [off mic.] >> president heldfond - >> (laughter.) >> all right. thank you. >> thank you. >> thank you. compliment (laughter) okay. >> noted also that sfiefldz has joined next item, please. >> >> 14. discussion item: annual esg update. has it been a year andrew? >> it's definitely. >> perhaps on the team is

setting up i can lead to a few remarks and the items following. what i really want to convey to the board the team you have before you and frankly the broader organization has a forward thinking approach to the annual esg the issue that complicated context top the team has a robust framework that encompasses investment manager monitoring and broader partnerships that is a process that enables us to have good practices around risk and the materiality of those risks it as fiduciary duty so the other point i'd like to convey it is not a point in time experience

we incorporate when we look to hire managers and the mandate is funded we continue to monitor like we monitor the investment risks and monitor with the annual esg risks and have a process to continue to evaluate and engage in necessary so with that, i'm going to turn it over to kurt. >> thank you. >> good afternoon, commissioners as noted this is the update of annual esg update so i'll make a comment and hand it over the aufrnd we have 7 items relied first is the annual eve and focuses on the active and ownership highlight in the collaborative work for divert

and annual esg is the integration of consideration of annual esg factors in the decision making and communication we'll highest partnerships with some of our sorrow with certain coalitions rather and up-to-date on the net zero ambitions in return will be followed by 6 action items the staff makes recommendation for the composition restrictions within the sections of climate framework that focuses on world gas companies and tobacco and sudan and russian companies in those instances perhaps not the first one but most of them keep the comments very, very brief and, of course, available to answer any questions. in each of those instances take the

individual items before hand it over to andrew in a case in 2022 you may recall it is investing come under a lot of criticism the issue of this has been commercialized with the investment management and fortunately has become super, super criticized but like i said remains true all noise want to reiterate the approach we've taken we incorporate the consideration of the environmental governors material motivators in a continuous in fiduciary we evaluate the annual esg as risks to be finding and measured and so we are

considering the means to ideal investment and our approach is there the fiduciary duties focusing with risk and focusing on risks and increasingly identify some investment opportunities. and i'm going to turn it over to andrew and ask you to introduce (unintelligible). >> yeah. thank you. good afternoon commissioners and looking forward to the conversation and presentation. it is before i start, i want to introduce you to blake our newest member at an officer and competitive research we are pleased to be able to hire blake he has a great background in private and public market and uniquely well positions in his role and give a little bit of

eve of. >> started doing annual esg management and over to t g a private equity firm with private funds and most recently a technically for private equity and other data and monitoring. >> thank you. >> and couldn't tell his background but it is visually everything we do we're very fortunate (coughing) yeah without further ado. >> jump sweet spots presentation here follows first, we'll do an overall and the progress we've made in 2023 on

each element and kurt alluded to a deeper dive with companies and then a discussion of how we integrate the annual esg considerations into our investment and finally highlighting key partnerships and lastly, a process net zero. >> so want to unecho what kurt and as said reiterate the market in annual esg our strategy has not changed we continue to implement and excuse on the 5 annual esg program i'll printed to the board and adapted and has been implementing as i mentioned

or since then and really maximum returns and minimizing risks with the objective of contributing to that end. >> um, issuing three pilars are identified here on this slide. um, the first is active ownership. this is wherewith we use the shareholder voting and engagement efforts what i like to call the voice and vote to focus on loerns or long term success a variety of was under the banner of our ownership and second is annual esg integration into the investment process and this is where annual esg consideration of part and parcel with the way we resource and diligent and maintain the investment relationship and

communication it the third we're trying to be participant and help foster in overall market that is focused on long term um, and a holistic view of what that constitutes. >> a over the past year made progress on each the three pilars some of the highlights contains own this slide and following a deeper dive into a few of them but that is our summon of activities and index contains the activities we had participated in over prior years a good point of reference to have from the board is interested. >> diving into the active pillar last year, we if you recall spent a lot of time going

into specific engagements and talked about what the objectives and what we achieved newcomer of. okay. this year i wanted to focus on the process and particularly the way we participated collaboratively in initiate with other investors we engaged with companies. >> and the collaboration is really central for sfers allows us to amplify our voice and i like to say punch the weight in terms of engaging with companies we may not be a top shareholder but want to communicate to the companies when we work and by coalition work together peers other asset owners like sfers and asset managers. we work with those peers strengthen our message and communication with a

company and companies benefit as well they can hear a coordinated voice if investors and minimize the meeting and understand how annual esg aware investors is thinking about our companies. >> the first coalition to highlight one where we work with three other california engine peers sfers and others. and we collaborated for the past 4 years with those groups to engage companies on diversity and governance we engaged with 60 companies with women and people of color and had a dialogue thinking about appointing and sourcing qualified candidates with the

diverse skills and background but engaging with them around their policies and practices for board governance and courage them to adopt best practices and key result with the 29 of these 60 companies postponed collectively 35 diverse directors so this is real okay. from the engagement and on the slide i'll not talk about this but a host of practices they adapted if governance policies information in the way they communicate and more transparent with investors. >> the next collaboration is

climate action one hundred plus an initiative in 2014 brings seven hundred investors and 40 trillion in total assets the object to engage with one hundred 70 so public companies contribute the most to global greenhouse gas emissions and airlines and chemical companies. >> our dialogue put forward a shared vision around what setting and achieving a strategy looks like for companies. >> how they effectively communicate and disclose information to investors and how those companies can think about climate risk among the other risks the companies face and the goal here is to show um, through this dialogue a long term

investor base thinks seriously about climate risk and expects companies to be managing those risks and taking advantage of those. >> it is hard to i think over estimate in a lot of ways the impact of this initiative over the last 5 years. it took place no companies on that list had a net zero strategy in place. by 2020, 42 percent of the companies had a net zero strategy. and then as of january of this year three-quarters of those companies have communicated and set a net zero. so any time you hear about a net zero open up for public comment put in place a lot of that can

be the influenced and dialogues that investors have in the climate one hundred. >> we had three engagements and sort of a divide and conqueror approach we had three engagements for companies and participant in about a dozen others. so both of those hopefully is an examples what but do and how we approach the compensated approach those are active and will continue to participant in them over the coming years and hopefully communicate in the following years. >> now the second pillar in the investment management process i want to highlight here is that annual esg considerations are a

key piece to overall large month sack monitoring and maintaining the relationships with the investment managers we invest with and potentially invest or invested in the past. >> as said annual esg considerations are not a point in time experience that is an ongoing experience throughout the full lifecycle of our investment process and want to highlight three key areas we engage with managers and conduct a review of the annual esg practices. the first is during due diligence this is where we have a structured process to

conduct due diligence alongside the due diligence and considering a new mandatory with the manager that process is outlined below i think you should be familiar we've had that process in floors a long time and continue to build it and augment it and improve that over time but largely we'll had that a long time your objective is around investment risk and opportunity how our manages are approaching their own annual esg integration and material for opportunities we should highlight and consider among other things the risks and opportunity we're considering as we recommended investment to move forward. um, that due diligence is at a later date to

specify - we looked 9 approaches of manager and at the same time i want to be flexible with risks maybe specific to an investment strategy a particular asset class a geography approach those annual esg risks and annual esg can differ depending on the opportunity so our process is the same structure but dives into unique risks maybe identified and this is really focusing on which of the 12kd risks can be material to

investment outcomes and trying to gain comfort that the investment strategy the investment managers are mitigating for eliminating that to the best degree they can. >> if i may. >> in this process i love; right? >> how are managers on the private market side respond to it this is a (unintelligible). >> if we have borrowed the same structure process. i think when i first joined 5 years ago our conversations on annual esg with the market managers was the first communication they have or among the first it is part of what that nearly all people operate so we're preparing for the conversations that

conversation we moved quickly to adopt those. >> (multiple voices). >> with we do. >> we said this before but the resources. >> right. >> smaller ones earnest they have a long way to go on their journey (microphone distorted). >> many of the managers are so far behind how they structure their own process that's why i asked that question i want to highlight the manager investment piece here blah kurt is alluding to opportunity for in bound and out bound manner to talk to merchandise about their annual esg policies. so we take in bound requests from them given we have are in the market we see a lot of different strategies

and approaches. we have subject matter expertise in the area and managers will ask in terms of reviewing any annual esg policy and how they should think about the collection of data and communications with their bases, etc. but at the same time, we also make out bound or pro-active requests if we think a manager could improve on a particular programs and policies that is something we're comfortable doing and more and more comfortable to engage with them and give constructive input and here on the shared value we believe those things are important should proof valuable 0 us as well as the manager how to further institutionalize them

we can be shown to be helpful and an lp it is helpful and supportive strength in our relationships with the annual esg questions about allocation or on el paradox we do that correctly we can be seen as resource differentiate ourselves from other lps that's a benefit. >> okay. thank you. >> um. okay. so want to highlight i guess maybe double quick button due diligence process. and highlight how we think about um, sort of environmental social and governance risks and examples in each of those pilars. using real

like examples of different classes and different types of of investment managers we'll think about governance risks and the example here is, you know, we considering investing with an active public equity strategy and concentrated negotiations a few public companies a small portfolio. so in this case we might spent a lot of time talking to the merchandise or managers how they think about management and for investors and what protection are for minority shareholders and in that company. and if and when though may eye tools like filing shareholders proposals or other things that's the case where we

are doing our annual esg due diligence and looking at the risks among financial risks and spent a lot of time on the governance of the annual esg. >> for example, the environmental pill for a real estate investment have valued at strategies where the manager's acquiring to up-to-date those assets and one starting point to look at the environmental liabilities and managers buy assets in operation and conducted environmental impact assessments or taking on a potential environmental liability can cause a risk down the line and looked at it things like environmental serious how are they trying to improve the operations for the environmental

energy efficiency like a.d. solar panels and electrical vehicle structures have an impact and grate financial value of a higher exit price for the managers and lastly, think about the richardson where the asset is located does the manager have a good process to insure that they're not exposed to undue physical impacts from physical changes to the climate. >> and then late highlight in the social pillar for example, looking at a private equity firm maybe invest in the industrial companies and here might spent a lot of time thinking about how they're 13wr59 the workforce and human capital management into the day to day due diligence on

assets. and manage companies once they're like looking at the environmental health and safety and relationships with the odor labor been prior labor disputes and work stoppages what their record is there and then overall focus on you know, job creation and preservation how they interface with the local community and contribute to the work workforce. >> so those are you know, hopefully three examples cross classes based on unvery similar things we do on a day to day base in generalized terms talking about the strategies and that show our can go a layer deeper once we identify a annual

esg topic. (rustling of papers.) >> um, and then lastly on this slide highlight that our focus on annual esg risk and opportunity doesn't end after we make an investment. um, we are continuing monitoring the first portfolio and for environmental social and governance concerns can arise in the life of an investment this has evolved and continues to improve over time but what we want to do when a concern arise investigate it and understand the nature of that and take any necessary steps that we need to address those concerns that come up our potential arcs are pretty broad. and really depends on the circumstances but it is always

the lens how that annual esg risk reputation risk can effect the investment. >> so next wanted to move on to the third pillar here. and this is the collaboration and communication we participant in and highlight a few annual esg partnerships that we have. um, one is um, through the principles responsible investing for the p r i and the other institutional limited partnership partners as it is referred to and to advisory committees are focused on advancing annual esg tools and

resources for the that i have equity industry that private managers are making on annual esg. those i think are a really good leadership opportunity for sfers to get people at the table to shape the market around annual esg best practices and a peer a peer gave me how others are thinking about their annual esg approach. >> how about your position? >> yeah. >> you know, i represent sfers on those committees so - thank you. >> we also participant in a thirty percent coalition and more of a leadership role in that organization. um, that go

up is focused on advancing representation of women and people are of color so over the past year took a co-chair position on the committee. >> people - >> yes. >> yeah been significant growth um, in terms of p r i say biggest growth within the private equity industry and the other industry i don't know the numbers but hundreds of new asset managers have joined and i think the organization that sort of an influx of what that looks like on a membership basis thousand with across the geographys with divided

approaches. >> lastly, i want to close an update on the process towards our mission to be a net asset owner by 2050 and measure that towards this ambition what we call our sort of blended market portfolio and so this initiative is the public equity portfolio and corporate are a fixed income portfolio why we do this this is the only portion of portfolio we have currently educate to grandular data that allows us to conduct that type of on analysis our objective to expand our ability to have cash foot printing across the portfolio the market did not provide on the data necessary to do that today. the headline is good

we're ahead of the 2025 13wir78 goal we've communicated around the carbon footprint of this portfolio on this slide the further right blue dot our carbon footprint sits today and the 2025 we are below that today, the picture behind that is a little bit more complicated so want to communicate that we made good process and particularly a lot of the decarbonization since 2017 which is the bottom line year has been a result of portfolio actions we're taken as well as the real cashtion of companies over and over is past year i think

there's other factors are influenced this reduction if measured number. um, that is the factors we used to measure this this includes the revenue of companies that's how we formalize our footprint and the composition of the weights of different companies within this so all i think really good process but caution this number what about volatile year to year a rebound effect next year or next year and then alluding to in addition to the measuring the carbon footprint and progress the other objectives are a climatic change plan we

integrate all forms of due diligence and processes (coughing) and efforts trying to drive better data and the transparency for other classes we're measuring right now a third or less from at carbon footprint so contribute to get the full portfolio. >> that concludes my presentation. and i'll be happy to answer any questions you may have. >> before we go into (unintelligible) (coughing) >> thank you. >> a good presentation i have a question. >> i don't know if you can quantify or equal, if any, is but is there a good critical mass of goodwill and desire to

learn more from women from general partners looking at us as limited partner? do when i bring a portfolio of in a natural capita on this subject with the general partner. >> yeah. that's what i was trying to communicate around the gavin newsom's opportunities that yeah. there are opportunities where we can be of value to our general partners. and i think the biggest impact is performing for smaller or emerging manager they're still scaling up to be institutional quality maybe among the first or a few public pensions that are in their lp base i think we can be really valuable given around their history practices and had

good guidance in the past to quantify. >> would it stand to reason we would have a small leg up at as a a general partner considered in the earlier (unintelligible) that might be comprehensive. >> (microphone distorted.) >> i know they may not want us because of this. >> the commission again unmute i was. >> sorry. >> thank you. >> any questions? >> yeah. >> so um, thank you, first for the presentation. um, it is very informative and in preparing for this i thought that was helpful

to have the slides on page 8 that talked about the history of the work and proud of sfers being a leader in the area and taking this risk i also like to learn a lot about the collaboration with other public funds described on page 11 appreciate we are working with other like-minded groups. and had a number of questions and i apologize that i have to ask them here life one of the biggest fears the reminder you're getting old with about you don't know how to use technology and i had a question written out in my out box for two weeks ago i have to read them. >> loud and a lot of the the

training around that have highlighted specifically a major topic of concern that is measuring risks specifically in private investments around um, lack of labor peace agreement and impacting the returns from investors we've seen to pop up over the country and talked about a lot not training i've been to certain practices are shared i'm not sure they're best practices but version of best practices around questionnaires and making sure to highlight priorities around that risk is the partners annual esg perspective so i know you talked about that already in terms of managers communication but can you talk about more about how we

measure and monitor the risks from a lack of labor peace agreement and disputes are those captured in the tracks or is that categorized somewhere else. >> that's a great question. in terms of measurement we don't have a quantitative tool to measure that today and first i'm not aware of it but open to reviewing it i think that has certainly an element of our best managers we allocate to where this can potentially be a material risk to the investment strategy so we are trying highlight in some of the examples the way we think about social risks with that topic and in the social pillar among other

things the other annual esg risks and financial risks so the key here is for us to understand our managers approach to this topic and comfortable we have the programs and policies in place. to mitigate any risks around any annual esg risks and social risks. and any risks related to you know, organized labor in the strategy. >> thank you. >> would you say that highway would we destine that - how teller is that in the labor put in the initial outreach when we're dui the annual esg is this a big part of vetting process in our analysis a big concern which we're vauflt the potential annual esg partners. >> yeasts materiality is

qualitative and hard to destine term. so hard to i guess; right? can't put a number that in a range of investors with classes and strategies and there are some where relations with organized labor maybe a material factor and some ways a less material factor. i think that is the type lens we try to bring to our process. um, to understand um, if and were there maybe risk and opportunity around that topic and the same way we approach the annual esg tropics and oftentimes their defined by industry and the best practices industry based fraction like at the subsequentth for over size it i've identify the topics are

likely or given for a material industry to great resources to look at a map of when environmental social governance factors maybe more or less material depending on the - that's the general approach as well. >> thank you. >> do you concur that i was indicating earlier i've heard some sort of a best practice especially around a labor piece questions within a questionnaire or the in take signals the annual esg is a major concern or information that is brought back best practices or maybe some plans are doing but not others? >> so i'll talk about that yeah. what those resources are hard to answer now.

>> and then the last question what area do you think we might improve if there is not a best standard or best practices to improve or analysis this risk in our investments. >> yeah. participation like we are participating in that's why we are active in groups like t r i and others to promulgate the best practices 34507k lps and gp but do a good job no forward-looking risk areas with the annual esg things are always changing i thought continuing to do that for sfers in the market. >> thank you. >> and think is last question following up on board member

bridges earlier when you look at hear about sort of the labor dispute risks some of the business is it usually co-related to gp have less education with with that in general or risks spread out across sophisticated um, private equity partners? >> i think i'll be speculating to answer that. >> a does that make sense? the nature the strategy with the focus on (microphone distorted) be a large manager or much more strategy (microphone distorted). >> i appreciate and obviously as more of a comment we definitely want to be well-informed of this risk i speak to that myself and many members on the board find this is a very, very um, important area of risk we of the to be

aware and staff is aware of those risks but especially in the private sector i'm sorry in the private equity and other private markets. >> looks like we lost our - presence i'm who - >> why not go with board member driscoll and . >> and unmute board member driscoll. >> i'll follow-up annual esg a far more complicated than s r i am more than a buzzword. >> one of the things will that fairly broad success feedback has to do with with their skeletals managing people i'm wondering do you see that as

well? >> yeah. i think terminology has gotten maybe more mutt legal a range of terms people are using for best practices yeah. i agree annual esg and subsequent have a lot of overlap but. >> sustainable investments partners taken care of people whether in house or company invested. >> maybe go beyond score keeping we're no over thirty thousand companies it is interestingly if you like to count have other things to do if we count the employees we may own a dollars worked out or one hundred millions how many have - no agreement negotiating but

collective bipartisan is addressing do fair labor best practices and they set it will or will not have collective bargaining but one of the investments that triggers the issues there is that um, people issue thousand they treat people certainly. >> yeah. i believe about 10 percent of u.s. workforce is unionized today. but i think surveys have said that half or almost half of workers in certainly industries like to so united and that's the component of that not just the exposure to that topic of union but broadly about human capital maintaining

relationships women and children their workforce and trying to negotiate we argue that's the question two. thank you. >> in terms of process. again, the last couple of years every single has worked and attached to ernest of the recommendation and you're part of that objective the other investment people have liefrnd to weight the issues when they have an evaluation the question we have policies that have we used to tell our managers does not buy and sometimes trigger them has the annual esg process to your knowledge resulted in us passing own a manager because they couldn't pass annual esg - >> there are yeah. >> okay. that's good so we don't see the results it is - it is being applied we're not just

talking words. >> yeah. >> that's good. thank you. >> question 3. has to do with with page 20 oh, yeah page 20 obviously that graph are there concentration from net zero any significant con tracing are the domestic managers doing better than the gold managers i'm wondering if there is different possibilities where our goals not that they mean more but in other countries for the as significant. >> a number of ways to cut this i think one of the e m companies

can be more carbon intensive like the electrical power and e m are more on the grid than say north america or europe but other ways to think about um, carbon footprint or exposure depending on the manager and may have not volt in terms of carbon footprint year to year they're trading more positions and have concentrated strategies are better how to think about carbon or the type of segment they invest in. >> that's an element happy to share a more detailed report

based on the segment and concentrating increase the lower risks but have a lower carbon certain things we can't walk away from that's a balanced activity. thank you. >> thank you. that's the question. >> i was going to say i forgot. but i wanted to add on to a little bit of what vice president thomas was asking had you had our seechlt for investments do you ask any organization how they handle labor dispute and if this i have labor agreements that though honor?

>> we then think that is a material factor for an investment strategy we'll ask questions. >> can you give me an example and work to generalize a particular manager the example i gave about like a private equity firm focused on the industrial companies have a sense that industrial companies have higher rates of organized labor than to the segments we might invest in like the technology or software strategies that would be a potential case we ask questions like that. >> so any other examples like no real assets private equity firms or any of the firms or investments that go into hotels,

housing. anywhere you see additional repetitive labor. >> if we have found in a real estate strategy that we thought could invest in assets where order labor will um. >> what kind of questions do you ask. >> things like you alluded to i guess rates of organized labor and types of property and any examples of past labor disputes with work stoppages that occurred and how they have relationships with the organized labor. >> it is our job is to look at

the similarly to financial outcomes past performances not past indications of past results but our due diligence we are investing before a manager or strategy has deployed strategy and assets by likely learn if best practices they engaged in or experience they had in terms of annual esg topics. >> thank you. >> thank you and one follow-up after his engage in terms of the data in one of our responses earlier about 10 percent of the workforce approximately the currently under collective bargaining agreement. >> up to 50 percent described interested one of the questions you were discussing with

sfiefldz and company didn't have organized workforce has a labor peace policy in place because what you're sdrin if they don't have have been organized workforce and what is their policy when they see that? is there a policy to sandwich it or a policy is that a question we ask for any private equity partner. >> something around up holding the right for freedom of associations what about a relative taking off and this is standard on potential investments where we think the organization can interface with organized labor or a workforce

that. >> (multiple voices.) >> and 50 percent. >> yeah. i don't want to go so far to say we ask that question that's the key to the materiality for our approach. is trying to use our subject matter expertise to look at the range of potential annual esg risks that are numerous and broad. and identify those likely relative for a particular investment approach and spined their time with the manager. but whether this year incidents we want to make sure that our managers are up holding legal obligations and expectations around freedom of association and they're maximizing their potential to

operate and going to be not jeopardize in terms of adding other companies in operation of best practices and wants. >> thank you. >> may i add to point i know the supervisor asked a question for the one of our board but general partner has no employees an issue but do they have a position do you recognition they're right to organize. >> this is an issue that satisfied me but a human interest issue this is an interest. thank you. >> great any further questions or comments. >> hearing no one. thank you. >> next item please.

public comment first. >> anybody like to step up to the podium? >> two comment requests rights. >> yes. >> hi, good afternoon i'm jordan i'm a senior field director with power social welfare organization and working closely with the local 11 the union in southern california and arizona the evidence report rgh the significant related to climate and diversity and government issues and proscribed this process includes due diligence and engagement to long term shared values and includes

looking at labor disputes as talked about. i do think more metrics but over the last several months sfers leaders have heard from hotel workers like behind me regarding that a worker has gone on strike in fairfield lax like black stone and the housing & community development department in fedex owned by an investment group potential annual esg and risk for ferris. the sheriff to faces 5 frill unfair best practices allegations spliven two workers alledgedly on the unlawful work rules and so forth.

>> he and unlawful surveillance activity we urge you pubically to them they will not reinvest until further helicopter investments several weeks ago wrote the office will no more support in until the labor practices are improved in california and arizona and recommend sfers require firms to adopt those those that protects this from annual esg labor disputes. thank you. >> good afternoon. my name is critically i'm a cook though sheraton downtown and a proud

member of 11 local and i lived in phoenix unfortunately, the meaningful system is not liable to the city and the financial obligations i'm unable to have automobile and after the landowner raised the rent since then the cost of living has spiked and need higher income and alone i'm not able to have - and therefore makes it extremely difficult to rent and more than half any paycheck is to rent and - incomes when - since i've been in the industry working to sheraton and yet i'm unable to

afford healthcare and still made too much to qualify i've not seen a doctors in 10 years. >> i have mental health issues that needed to be addressed. and mc too much for assistance and you guys know what that feels like? i'm asking you to imagine and . >> 30 seconds. >> and we are on strike to earn a fair contact we're tired of not making enough to survive. we

have a unfair - and been testifying few the hotel fired my colleague and um. >> and urge you to put those practices our lives are on the line please solve the labor dispute. >> thank you. any more public comment on this item? >> seeing none, reminder to any callers please press star three to be entered into the queue. >> moderator any callers on the line. >> madam secretary no callers. >> public comment is closed. >> madam secretary call the next item, please. >> >> 15. action item:

approval of annual update on fossil fuel investments engagement and restrictions. >> so wanted i guess start with just a quick way of this item as well as the subsequent item the memos are describing in each of them the nature of the restriction the criteria we follow for the restriction area and any updates to the restricted companies we're recommending in order to support our doing everything we caning we - and then we updated on how our peers are approaching the topic we feel collectively should help the board in terms of decision making. >> i have a make a comment i

can assume each board member has done their research as they should have been doing. >> wonderful. >> so i'm not providing this introduction for the other items but for this item because it is so slightly different than the 5 others just wanted to describe our oil and gas segment are not a segment wide divestment like the other industry area restrictions we have in place. but based on internally framework we adapted no 2018 this allows us to analyze our public trade oil and gas companies and have a relatively higher risk and prioritize those companies to engage with and identify companies to restrict

investment and so politically that fraction we do this update annually resulting in 36 companies on the watch list for the engagement companies and other companies on the restrictive list i'll be happy to answer any questions you may have. >> on this item providing any clarification that is helpful to the board. >> again, this following 5 have are all action items required [off mic.] >> yeah [off mic.] >> yeah. >> this a note this one is a little bit different than the

others. the fractious of the priory i'm available for questions. and i'm going to turn it over to you. >> any questions? >> i have a point of information given those all require actions um, and maybe counsel can happen it like a omni vote or vote on each one. >> each one individually and promote public comment for each one. >> thank you. >> okay. so we will be on item number 15. now? >> go ahead. >> yeah. a motion. >> i know, i know. >> that's how the position can be we're not changing anything.

>> take the motion [off mic.] >> yeah will be helpful to state the sulgd actions that is on the agenda. >> make a motion to for sfers to reaffirm the intent to be deverified from oil and gas companies and talk about the rieshth companies in table one. >> second. >> move and segmented any public comment? >> anyone a reminder for callers to press star three moderator any callers on the line. >> madam secretary no callers on the line. >> no calls public comment is closed. >> moved and seconded.

all in favor, say "aye." >> aye. >> opposed? >> clarity of record can we say motion passes. >> the motion passes. >> madam secretary you want to call the next one. >> >> 16. action item: annual report and recommendation on tobacco restrictions. >> motion. >> go ahead, go ahead. >> (laughter.) >> mr. president i move that the san francisco employees' retirement system reaffirmed it's continued to remain deverified from tobacco companies and adopt the list of companies involved in the production of sale or distribution of tobacco products in table one. >> second. >> moved and seconded any public comment. >> do we have any in-person

public comment on this item? >> none. >> powder rapport any callers on the line and madam secretary no callers on the line. >> honoree pier 15 public comment is closed. >> moved and seconded. >> all in favor, say "aye." >> aye. >> the motion carries. and madam secretary next item. >> >> 17. action item: annual report and recommendation on targeted restrictions in sudan. >> i move san francisco employees' retirement system be divested if certain companies and adopt the 2023 list on table one. >> second. >> thank you. >> moved and segmented public comment. >> any in-person public comment

on this item? >> powder moderate rain water. >> no callers on the >> all in favor, say "aye." >> aye. >> opposed? the motion carries. >> next item. >> >> 18. action item: annual report and recommendation on firearms restrictions. >> mr. president oh, mr. president i move the san francisco employees' retirement system reaffirm the intent to remain divested from firearms manufacturers and retail companies and adopt the 2023 list of restricted firearms and manufacturers and retailers in table one. >> second. >> second. >> moved and segmented can we

have public comment please. any in-person public comment on it item. >> seeing none, moderator any callers on the line. >> madam secretary no callers on the line. >> thank you hearing no one public comment is closed. >> moved and seconded. >> all in favor, say "aye." >> aye. >> all in favor, say "aye." >> aye. the motion carries. >> mr. president i move that the san francisco employees' retirement system. >> call the item. >> >> 19. action item: annual report and recommendation on thermal coal restrictions. >> okay. >> mr. president owe move that san francisco employees' retirement system affirm to remain deverified in the cool companies and adopted the list as presented in table one. >> second. >> moved and seconded and call for public comment please. in-person public comment on this item seeing none, moderator any

caller on the line. >> madam secretary no callers on the line. >> to callers public comment is closed. >> >> all in favor, say "aye." >> aye. >> please. >> opposed? the motion carries. >> um, so - that would. thank you very much for. >> one more. >> >> 20. action item: annual report and recommendation on russian restrictions. >> before you i turned two quick. >> are aware the circumstances that led us to this particular restriction. and the restriction at the time to halt any investment in russian securities and devest from russian securities in our memo on page two we noted as november 20th o 30th enormous direct enclosures

that is no economic exposure but one company written to zero with the managers unable to sell in if change the language of the memo but for clarity we have chairs but economic value. >> so noted; right?. thank you. >> go ahead. >> (microphone distorted.) >> . okay. >> motion for number 20? >> number 20. >> i move that um, the applicant i move point san francisco employees' retirement system reaffirm to be divested if russian related security and reaffirm the criteria. for

restrictions and investment in russia. >> russian securities and the recommendation section the staff. >> second. >> second. >> okay. moved and segmented public comment please. any interest in public comment on this item? >> seeing none. >> any callers on was line and no madam secretary no callers on the line. >> hearing no one public comment is closed. moved and >> all in favor, say "aye." >> aye. >> opposed? the motion carries. >> now i'll finish. >> welcome to - but (microphone distorted) you demonstrated one call of excellence in other peer groups.

>> thank you everyone that is involved and that's it the tune of no public comment on some of this stuff i like to think we answered the questions and i don't know whether that is true but. thank you. >> does that cover both sides and 20 has two different recommendations that last months portfolio? >> okay. >> call the next item, please. >> >> 21. discussion item: chief investment officer's report. commissioners two items to highlight one plan assets stand at three 4 point one billion dollar and circling to update you on approved investments under delegated

authority under the delegated authority investing you were to tow million dollars with the gray hill that deal closes on november 3rd, and 2023 with the investment within our private portfolio. and this is the second investment with gray hill in the private portfolio. secondly, under our delegated authority invested $50 million this investment is an infrastructure investment with with asset portfolio and for the thirsted investment with pepper tree capital management and the materials on the performance for the recent quarter have spent a lot of time going through the performance. >> (unintelligible). >> that's all i have. >> thank you. >> if it is discussion only

any public comment. >> madam secretary no callers on the line. >> hearing no one public comment is closed. >> next item, please. >> >> 22. discussion item: retirement board member good of the order retirement . anybody - >> if not we're adjourned. >> public comment? >> do we have any interest on public comment on this item seeing none, moderator any called on the line. >> madam secretary no caller on the line. >> hearing no one public comment is closed. >> you forgot?

(rustling of papers). >> you have to say we're adjourned. >> item 23 adjournment. >> i said [meeting adjourned] ♪♪ >> san francisco!

♪♪ >> this is an exhibition across departments highlighting different artworks from our collection. gender is an important part of the dialogue. in many ways, this exhibition is contemporary. all of this artwork is from the 9th century and spans all the way to the 21st century. the exhibition is organized into seven different groupings or themes such as activities, symbolism, transformation and others. it's not by culture or time period, but different affinities

between the artwork. activities, for example, looks at the role of gender and how certain activities are placed as feminine or masculine. we have a print by uharo that looks at different activities that derisionly performed by men. it's looking at the theme of music. we have three women playing traditional japanese instruments that would otherwise be played by men at that time. we have pairings so that is looking within the context of gender in relationships. also with how people are questioning the whole idea of pairing in the first place. we have three from three different cultures, tibet, china and japan. this is sell vanity stot relevar

has been fluid in different time periods in cultures. sometimes being female in china but often male and evoking features associated with gender binaries and sometimes in between. it's a lovely way of tying all the themes together in this collection. gender and sexuality, speaking from my culture specifically, is something at that hasn't been recently widely discussed. this exhibition shows that it's gender and sexuality are actually have been considered and complicated by dialogue through the work of artists and thinking specifically, a sculpture we have of the hindu

deities because it's half pee male and half male. it turns into a different theme in a way and is a beautiful representation of how gender hasn't been seen as one thing or a binary. we see that it isn't a modest concept. in a way, i feel we have a lot of historical references and touch points throughout all the ages and in asian cultures. i believe san francisco has close to 40% asian. it's a huge representation here in the bay area. it's important that we awk abouk about this and open up the discussion around gender. what we've learned from organizing this exhibition at the museum is that gender has been something that has come up in all of these cultures through all the time periods as something that is important and relevant. especially here in the san francisco bay area we feel that it's relevant to the

conversations that people are having today. we hope that people can carry that outside of the museum into their daily lives. >> # daily lives. >> >> >> >> you are watching san francisco rising. >> hi, you are watching san francisco rising. reimagining

our city. he's with us to talk about how our library's economic recover. mr. lambert, welcome to the show. >> thank you. i'm glad to be here. >> i know it's been difficult to have books going virtual. have we recovered? >> yes, we are on our way. our staff stepped up big time during the pandemic to respond to the health emergency. since last may, we have been able to steadily increase in person access to library facilities. currently we are at 95% of our precovid hours of operation. in the coming weeks we are going to fully restore all of our hours. we have four branches that we are going to bring back to seven day service.

they are currently operating at 5 days a week and we are going to go to every tag line and i know all the foot traffic has not returned to san francisco, but our library is seeing a resurgence coming back. >> can we talk about programs after covid? >> absolutely, that is part and parcel of our mission. we were doing that work precovid and certainly the library stepped up during the pandemic. we doubled our level of programming for personal finance, small business help, jobs and careers. we have a dedicated small business center here at the library. there is a wide suite of programs that our librarian led. we have a financial planning day coming up in october and we have financial coaches that members

of the community can come to the main library and take advantage of their expertise. >> i understand the mission is in the middle of a renovation. how is that going and are there other construction projects in the horizon? >> yes, we have major projects in the pipeline. the historic mission branch library, carnegie library over 100 years old and we are investing $25 million to restore that facility. we are going to restore the original entrance on 24th street, the staircase from the lower level up to the grand reading room. we are going to push out on the orange alley side of the library and expand space for teens and children, we are going to create a robust community room, a multipurpose space. we are also investing $30 million in the chinatown branch,

we are going to upgrade the mechanical systems to the highest level of filtration as we increasingly respond as cooling centers and air respite centers and open access to the roof. it has some unique views of chinatown to create the inspiring space it is. >> i believe you have programs for families that have free and low cost entries for museum and zoos, is that correct? >> yes. it's a fabulous resource. go to our website. with your library cart, patrons, our residents can go to the public library and get passes to the museums, all of the incredible cultural institutions that we have in san francisco all for free with your library card. >> how are these great free

services paid for? how is the library system funded? >> we are so fortunate in san francisco. we are funded for by the library fund and those that taxed themselves just for library services. we also get a dedicated portion of the general fund. that together allows us to be one of the most well supported libraries in the nation. we have the third most library outlets per square mile of any municipality. all of our branch libraries have professionally trained librarians on-site. service that we are able to provide, the collection, we are a leading library in our country. >> that lead know ask about your biggest annual event in the

city. how does the event work and what's happening this year? >> we are excited for this year's one city one book. this is our signature annual literature event. we have everybody in the community reading the same book. this year's title is "this is your hustle" named after the pulitzer prize nominated and pod taste. this is about the population. one nice thing about this selection is that they are both local. we are going to have several weeks of programming, kicking off next month. it will culminate here in the auditorium november 3rd. so our library patrons will get to meet the authors, hear from them directly, and one other important aspect about this

year's selection, we have our own jail and reentry services department. recently the foundation awarded the san francisco public library $2 million to work with the american library association to shine a light on our best practices here in san francisco, and really help our peers in the industry learn how they can replicate the service model that we are doing here in san francisco. >> that's great. well, thank you so much. i really appreciate you coming on the show, mr. lambert. thank you very much for your time. >> thank you, chris. that's it for this episode, we will be back shortly. you are watching san francisco rising. thanks for watching.

>> for us, we wish we had our queue and we created spaces that are active. >> food and drinks. there is a lot for a lot of folks and community. for us, it started back in 1966 and it was a diner and where our ancestors gathered to connect. i think coffee and food is the very fabric of our community as well as we take care of each other. to have a pop-up in the tenderloin gives it so much meaning. >> we are always creating impactful meaning of the lives

of the people, and once we create a space and focus on the most marginalized, you really include a space for everyone. coffee is so cultural for many communities and we have coffee of maria inspired by my grandmother from mexico. i have many many memories of sharing coffee with her late at night. so we carry that into everything we do. currently we are on a journey that is going to open up the first brick and mortar in san francisco specifically in the tenderloin. we want to stay true to our ancestors in the

tenderloin. so we are getting ready for that and getting ready for celebrating our anniversary. >> it has been well supported and well talked about in our community. that's why we are pushing it so much because that's how we started. very active community members. they give back to the community. support trends and give back and give a safe space for all. >> we also want to let folks know that if they want to be in a safe space, we have a pay it forward program that allows 20% to get some funds for someone in need can come and get a cup of coffee, pastry and feel welcomed in our community. to be among our community, you are always welcome here. you don't have to buy anything or get anything, just be here and express

yourself and be your authentic self and we will always take care of you. >> thank you, everyone. i'm london breed the mayor of san francisco a hero today with so many of our small businesses and we're here and pass at the company and here with the persons in charge of the merchants association with the treatment department i don't, i don't know they're hiding the two people instrumental in working with