next speaker, please -- please. >> thank you, madam assistant clerk, president breed, ladies and gentlemen of the board. my name is winship hillier. i am an involuntary psychiatric outpatient here in san francisco and have been now for over a decade. let me just go through the logic with you. if there be no property without -- if there be no injury without property, and there be no property without labor, and you, through your funding of citywide case management have taken away from me the ability to labor, because that is what citywide case management community focus does, it dablz peopisables peo permanently, how is that not theft of the property that i would have earned if i was

still able to work? and how is that not injury? and if that can be done -- and i'm still waiting for my day in urt. if that can be done without any accountability, without any citations or any authority, then, how is anybody's property safe in this city? and if nobody's property is safe, why are we paying you to run it? madam. >> clerk: clerk thank you for your comments. ne speaker, please. >> ready to go? here we go. ladies and gentlemen, board of supervisors, and distinguished guests that's looking through the views there, my name is ace and apparently you all know i'm on the case.

so i don't have much time to speak, so i'm going to speak in general. most important election in our history -- in my near history is coming up in june. yours truly, ace washington, will be down here before noon. let me just say one thing. i'm getting everything prepared legally so i can insert myself back over there where i belong here in the city by the bay, if that's okay with you all. excuse me if i seem to be a little harsh in my voice. it's -- the weather's kind of bad outside. but i have a special announcement, you all here at city hall, you all, i'm getting ready to start my new tv show, and that's the somehow. and you all are wondering, what's the name of it, ace? back in the day, i was going to call it silly haul, but that's

not right because i want it to go viral all over the world. the name is -- [inaudible] >> -- aceonthecase.net, .org,.com. my views are going to be factual. it's not no alternative news or the facts. it's going to be like i used to be involved with the facts. only the facts. anything that come out of my mouth could be effectuated with the video. >> clerk: thank you for your

comments. madam president, no other members of the public in line, so i'll hand it over to you? >> president breed: thank you. are there any members of the public who would like to provide public comment at this time, seeing none, public comment is closed. madam clerk, we're going to go back to roll call for introduction. supervisor ronen? >> supervisor ronen: thank you so much, colleagues. i have received a lot of requests and would like to make a motion to close today's board meeting in the honor of harvey milk, given that today is his 88th birthday. >> president breed: sure, and we can do that on behalf of the entire board of supervisors without objection. madam clerk, let's go to the items for adoption by

committee. [agenda item read] >> president breed: supervisor fewer? >> supervisor fewer: yes, i'd like to sever item number 41. >> president breed: supervisor cohen? >> supervisor cohen: yes, i'd like to sever item 44. >> president breed: okay. can we take the remaining items without severing? madam clerk, please read item 41. [agenda item read] >> president breed: supervisor fewer? >> supervisor fewer: yes. i would like to make a motion to table that item, please? >> president breed: moved by supervisor fewer, seconded by supervisor peskin. colleagues, can we take that without objection? without objection, that item has been tabled. please call item 44. [agenda item read]

>>dentreed: supervisor cohen? >> supervisor cohen: thank you very much, madam clerk and madam president. i'd like to amend the date from june 19, 2018 to june 26. i also would like to amend the proposed meeting time to be 3:00 p.m. >> president breed: supervisor cohen, is this for the full board? >> supervisor cohen: yes, this is for the full board. this is for the committee of the whole. it incorrly stas june 19. i'd like to change the date to june 26, 3:00 p.m. >> president breed: so supervisor cohen has made a motion to amend. is there a second? seconded by supervisor yee. colleagues, can we take the amendment without objection? without objection, the amendment passes. and on the item as amended, can we take that same house, same

call? without objection, the motion as amended is approved unanimously. madam clerk, please read the in memoriams. >> yes. today's meeting will be adjourned on behalf of the following beloved individuals: on behalf of supervisor tang for the late mr. cory calcanye and mr. brook ann hantz and mr. dale robert jankowski. on behalf of supervisor safai for the late sister patricia ann claherty. on behalf of president breed for the late miss eileen o'sullivan, and on behalf of president breed and supervisor ronen for the late miss barbara brown lopez. and at the suggestion of

supervisor ronen on behalf of the entire board of supervisors for the late supervisor harvey milk. >> president breed: thank you, madam clerk. is there any further business before us today? >> clerk: that concludes our business for today. >> president breed: okay. we are adjourned. thank you, everyone.

everyone ready? would everyone please rise to the pledge of allegiance? i pledge allegiance to the flag of the united states of america, and to the republic, for which it stands, one nation, under god, indivisible, with liberty and justice for all. >> president stansbury: mr. secretary, roll call. bridges present. casciato present. cohen is expected.

driscoll present. quorum is present. >> president stansbury: great, we're going to be going into closed session, but before that, why don't we call for public comment. is there any members of the public that would like this address the commission? seeing none, we will go into closed session. anyone who doesn't need to be here, would you please leave the room. >> ok, we're coming back into open session. is there a motion not to disclose? there is a motion. there is a second. can we -- discussion? can we take it without objection? great, item passes. mr. secretary, next item. >> general public comment. >> president stansbury: for

general public comment, just for clarity for the public, you have the opportunity to comment on anything not already agendaized for the board. if you want to comment on hedge funds and they're on the agenda, it wouldn't be appropriate to comment here, but under the specific item. that being said, is there anyone who would like to talk to the board under general public comment? >> good afternoon, rrcaa. just to explain the little green sheets that i left for you. we apologize that our annual installation and luncheon is on the same day as your board meetings, which why we changed our meetings to go at 10. if any of you are able to stop by just to say hello to our members, we would be most

grateful. we realize you wouldn't stay for lunch, but we have to send out the invitations anyway. >> president stansbury: thank you. i have a speaker card for you for general public comment. >> so i sent an e-mail on this comment which is that i would like to suggest that you add two 1-page reports to the monthly report on the strategic asset allocation and investment risks. for the strategic asset allocation, i sent a table. here's the table. right now, you have 60% in equities. in september of last year, you had 62-63, so you're down 2-3%.

your strategic asset allocation has 49%, that's 11% lower. and the adjusted mix that was proposed by the cio had 56%. so you're still 4% above that. and that was the one that had the 42% funded status. so there is a huge amount of changes going on in this strategic asset allocation and it's really hard to keep track of all the moving parts. so i think that a summary table of those moving parts with a brief description should be provided once a quarter, along with the investment risk report. regarding the investment risk report, alan ber nell is leaving on the 29th. this is a huge opportunity to bring in someone with -- >> 30 seconds. >> -- financial market savvy and global economic savvy who can

put together and see or hopefully foresee the next financial economic down turn and crisis. nobody in sfers staff has that capability right now. >> president stansbury: thank you, any other members of the public that would like to address the commission? seeing none, we close general public comment. next item. >> 5, approval of the minutes of the april 11, 2018, retirement board meeting. >> president stansbury: why don't we call for a general public comment. are there any members of the public that want to address the commission regarding the minutes? seeing none, we close the comment. there is a motion, a board. any discussion on the item? commissioner driscoll? >> commissioner driscoll: board members may want to consider to amend that motion to the minutes

approved if they're edited. sometimes it takes a moment. the two points i would like to see added to the minutes is that it would have beeitem 7 under the minutes. which related to the department strategy, in the area of divesting from fossil fuels. at the 40-minute mark of the meeting, mr. coaker said there was no other strategy in the marketplace like this one in the sense that the low fee, low tracking, reconstituted index using robust data. subsequent to that and i could not find what mark, he also answered a question of commissioner cohen saying this was the only strategy. i think the minutes should reflect and capture that word, only. it's a very material statement based on the way this hiring was done.

so i think that word is a fact. that is true. what that word means, i do not know what it means, because i do not believe it's true. i'm working on that and will try to confirm whether that ement i ors uenot. as a material issue, based on how this firm manager was hired and funded. so, i wish i could get the sense. i would give the report to mr. nickens, a point where they can look for the phrase to amend the minutes to capture that. part two, the end of the minutes, i understand the secretary tries to capture long discussions into one or two sentences. phrase reflecting that this proposal, goldman sachs, this proposal was presented to the board. minutes are a reflection of what happened as opposed to

rediscussion. i did not consider anything goldman sachs to us was a proposal to hire and fund them. >> president stansbury: do you want to speak to that, do or you want an opportunity to take a look at what was said to amend the minutes? >> i believe this is a discussion, we'll add the two comments, direct quotes that commissioner driscoll requests as long as the maker of the motion, the seconder is amenable to us making those changes. >> president stansbury: do you want to -- >> i don't think it's appropriate to have a discussion, but certainly we can reflect the -- have the minutes reflect the two statements he's requesting. >> president stansbury: there is two options, one we get the minutes cleaned up, and bring it back next month so we're all on the same page, two, we could just approve it and hope we capture what is said correctly.

i would prefer to push it to next month so everyone can see it. are you amenable? ok. great. so if you could go back and take a look at what was said and try to capture the essence of commissioner driscoll was talking about. great. next item. >> item 6, action item, approval of the minutes of the april 262018 special retirement board meeting. >> president stansbury: any members of the public that would like to address the minutes from the april retirement board meeting? seeing none, we will close general public discussion. any comments amongst the board? there is a motion, there is a second. any discussion?

take this item without objection? great, item passes. next item, please. >> item 7, the consent calendar. >> actually, first of all, i want to note and ask the passing of dr. tal image is impacting us in the retirement applications and also the h.r. medicals. >> we have been able to find doctors with the same qualificatio qualifications, so it has not impacted us. it was a surprise, but nothing was delayed. >> i was very smoked at his pass -- shocked at his passing. i would ask that we adjourn in

his memory today. number two, in looking at these -- is this the same thing about the summaries that we have in the investment calendar. i'd like to see and ask that if we could do in the matter of the applications, some of them are very clear, but if we could put the name, department, years of service and a clear distinction whether they're industrial or ordinary disabilities, i would just say to those who have the packet, you can look at the second retirement, which is 002 at the end, in the header. it's an application for disability retirement. it does not state whether it's ordinary or service. then it's only in factual findings, number one, is it mentioned? and in the actual order, the application for disability and retirement is granted, but it's

not -- it doesn't make a distinction whether it's industrial or ordinary. so i think it would be -- if we could keep them consistent up there, with the applicant name, that would help. and the only other thing i would ask, at some point in time, it would be really good to have a chart that shows the flow or how an application both industrial service or ordinary flows through the system. so that we can -- the reason i say that, there is one application in the packet today where it fell out for about a year, because of a name issue. and we weren't tracking it, so we had to bring it back. and i think that would be important to have a flow chart showing how these things move and where they're at, just to prevent things. with that, i would move to adopt the consent calendar.

>> commissioner, the suggestions you're making, we can provide a flow chart, but that's simple and we'd be happy to do that. you're asking us to change the way the hearing officers draft their decisions and we don't really have control over that. i mean, the information that you're requesting is actually in there, but there is no particular format. it would be difficult for us to go to the judges and ask them to have a different format. we can certainly try, but i can't make any guarantees that the judges would comply and we don't really have any ability to do that. >> i think if just fill in the box, checking at the top, that's what i'm talking about. is that at the top, which is applicant name, name, department, years of service, industrial or disability or

ordinary. because here on this one, it says ordinary disability retirement which is clear. the one behind it doesn't say it until in the packet in the statement of facts and doesn't even reference it in the finding at the end. >> commissioner paskin-jordan: i understand, we can ask they be more specific in the captions. we can certainly ask. >> president stansbury: if not, can we just get a stamp? >> cross referenced. >> president stansbury: can we just get a rubber stamp and stamp it copy for the board, industrial, something like that? >> commissioner paskin-jordan: sure. thank you. >> president stansbury: any other comments? discussion on the consent calendar? great. i lost track. public comment. any members of the public that would like to address the commission on the consent calendar? seeing none, we'll close public comment. is there a motion?

what is that? there is a motion, a second. any discussion on the item? can we take this item without objection? great, item passes, next item. >> item 8, discussion item, the investment committee report, commissioner driscoll? >> commissioner driscoll: five items that were related to planning. strategic plans for executing the asset allocation decision that we made late last year. this was only part one, so if you missed the meeting you're going to get part two possibly on june 20th. we may have to reschedule that meeting because there has been significant staff change. but you'll get advance notice on that. again, we talked to staff, meaning managing director public

equities, the senior investment officer, senior investment officer or liquid credit. but again, going back to the total asset allocation and the general plan that the cio, discussed their expectations what they're trying to do, focusing on the key issues of a very good total return, a very good risk adjusted rate of return, as well as focusing on trying to minimize significant drawdowns, which means very large losses that do effect the contribution rate as well as the total funded status, funded ratio of the pension fund. i think we had very good audio on it, we did not videotape that meeting, so you missed it and want to catch up with the documents, is there are basically five working documents, plans, in the next four or five to complete the package. includes the whole risk

management plan that will tie everything back together. it took staff many, many weeks to prepare that to again show us basic plans like we've been hearing for real estate and private equity for all the other asset classes, how they see their ability to plan the work flow to achieve the asset allocation mix, if the board adopted, which is our first major risk management tool that we use. so that meeting lasted just over two hours. a lot of words. some good graphs. we're going to review it. not every year, but again, it's the plan for executing the asset allocation mix. the board decided on about eight months ago, a tri-annual event. >> president stansbury: thank you. why don't we call for general public comment for the investment committee report? any members of the public that

would like to address the report? >> i thought it was a great meeting. i will reiterate what i said, there a tremendous amount of moving parts going on, you're moving billions of dollars right now and trying to do it in a way that you're trying to balance two things at the same time, which is your long-term strategic asset allocation and also using that strategic asset allocation to de-risk the portfolio. it's a very difficult task to do. i'm not longer going to suggest these risk mitigation strategies because you're not going to do it. but repeat my earlier suggestion, create a table that shows all of the major asset classes and show where you are now compared to the strategic asset allocation, the adjusted mix and where you were in

september of 2017, when you passed it. if you do that, your equities are 60%. in 2017, they were 63%, so you're down 3%. in the strategic asset allocation, you're 11% above that right now. so there is a glide path and you have to balance the two things, which is you want to maintain all of these key fund manager relationships on the one hand, but you want to de-risk the portfolio on the other hand. so very, very difficult thing to do. bill has said in the meeting on the questioning from commissioner driscoll that some aspect of tactical decision making there, which i'm glad you have he said. you have that difficult balance. i think that table should be in a report once a quarter explaining all the moving parts, because you're moving billions

of dollars around very quickly. and you're changing managers quickly and it's hard to keep track of them all. >> president stansbury: thank you. are there any other members of the public that would like to address the commission regarding the investment committee report? seeing none, we close public comment. any discussion from the board? great, next item. item 9, discussion item, chief investment officer report, mr. coaker. >> start by looking at the second page, if you look to the column titled, allocation, alloc, i want draw the progress we've made. you see private equity right now is 16.5. that was under 12, slightly under 12 four years ago. so even in a bull market, we've come a long ways there. the next is that liquid -- well,

let's take private debt. only 1.8%, but i'm going to come back to that because we made $600 million worth of commitments that are waiting to go called. when it does, that will be over 4%. the next progress is in real assets. that's at 14.2. that number was slightly under 9 four years ago. so we've come a long way there. and absolute return, that's 9.6, and that number has been built from the ground up, in the past year and a half. we've come a long ways, what is still to be completed is the remaining build-out of 5% in absolute return. i think we're going to be more than halfway of that 5 in about year end. private credit, we've talked to you, that's going to take time. that could take five years. that's cambridge's estimate. it really is dependent on capital being called.

that number will be taken primarily from liquid credit, which right now we're overweight by 5%. so there is a lateral move from liquid credit to private credit and we've talked about the tradeoff of less liquidity for much higher yield and much higher expected return. and then private equity, the remaining 1.5 and 3%, to get to policy targets, that's really now -- we've made the commitments, i'm going to point to the lower left here in a moment. that remaining almost 5% between the two, that will come from public equity when capital is called. so, another thing that i want to let you know is in the lower left. and you see that in private equity, in real assets combined, we have about $5 billion. in commitments that we've made, that will be called over time. that number was a little less

than $2 billion four plus years ago. so we've made the commitments. we're now waiting for capital to be called by our business partners. i wanted to give that summary on asset allocation. the next i want to turn to is the narrative document. called memorandum. basically our return year to date. we had another fine month, up almost 0.4%. year to date, up 9.6. on a fiscal year to date basis, most everything is working. you'll see that public equity, both u.s. and international, are up more than 10%. as are private equity and real assets are also up more than 10%. bonds have struggled. we are down slightly in our

public fixed income market. the worst asset class to date so far this year is the 10-year treasury. down about 3% or so. turning onto economic conditions, the next several pages, there is 11 metrics here indicating that economic conditions are quite solid. we have a 91st straight month of job growth. you see when unemployment now, at very, very low levels of 3.9%. usually economic theory would say that when unemployment is this low, you have a major uptick in inflation and we haven't seen that. and i think the powerful forces of globalization and technology are the reasons why. corporate profits you'll see in the chart have been very strong. there is a number of metrics at the bottom of page 3 that indicate that there is a lot of data to suggest that the economy

is in a nice strike zone. in the lower left on page 4, there is a lot of talk about valuations and how high they are. according to j.p. morgan here, the forward looking ratio is 16.4. the "wall street journal" today says it's 17.1. that is high, but not terribly high. i point to one number here that is high on this chart. it's in the table on the lower left. that is the schiller pe ratio of 32.8 is high. i would point to three things about that. one, it is based on the normalization over 10-year earnings period. we had an earnings catastrophe in 2008 and 2009. and there is two important sectors within that schiller ratio, that we were in earnings depression and that is energy and financials that combined

well over 20 -- a little over 20%. you see on the right side, based on where valuations are, if you were to do regression analysis, our forward-looking five-year returns would be about 7.5-8%. next real estate. i want to give you a word picture about how expensive san francisco real estate is. it's more than nine times median priced home is more than nine times median price home income. so rivalling hong kong, excuse me, hong kong is easily the most expensive market in the world. it has a high population and super, super small in terms of geographical space, and san francisco as well. next, you need to get some

closing items out of the way. benjamin fuchs asset management, we asked for $125 million, the board approved. we received $100 million. bgh, we asked for $50 million, we received $45 million in australian dollars. sbcvc, we asked for $25 million and we did receive $25 million. on the right side of page 7, you see the absolute return numbers. doing fine. you see again the bond market has really struggled since the inception of this program. we have reduced our bond exposure from 20% down to whatever the number was, it's really quite low. personnel. two big positives and one sad piece of news. andrew collins joined us as director of esg, we introduced

him to the board a few weeks ago. andrew has nine plus years experience in the esg space, most recently at state street and with the accounting standards board, we welcome bo williamson, he has more than 12 years of private equity experience, we're thrilled to have both them join the team. >> are they here in the audience? >> they are, we did introduce them, but you weren't here. andrew? do you want them to speak. bo to our left and andrew to your right. bo, andrew? act one, scene one, take two. >> i'm bo williamson joined last

week, working with art and cynthia. i was with the private equity funds group. >> welcome. >> thank you. >> andrew? >> nice to meet you, andrew collins, delighted to have joined as the director of esg. coming from global advisors, where i was esg strategist working with institutional clients around the world. prior to that was in a research role with sustainability accounting standards board, a nonprofit based here in san francisco that works between corporates and investors on

better data and disclosure. delighted to be here and look forward to working with you. >> president stansbury: thank you, andrew, bo. >> we're sad so say that ellen is leaving sfers. she has been the directing manager of asset allocation, risk and innovative solutions. this is decision from a mix of a couple of things. second to last born daughter is leaving, graduated right now and heading off to college in england to join her sister, who is already there. and that, plus how housing prices, she and her husband have decided to relocate to the midwest to trade lower housing prices and much larger land in exchange for cold weather. [laughter] >> much colder. >> we have an open recruitment for an analyst for private debt and have begun recruitment for ellen's replacement.

we have the investment committee that is scheduled for june 20th. we're in conversation with commissioner driscoll, with staff travel, you recall that the meeting has been moved around a couple of times, staff has travel scheduled for june 20. we'll see, but we'll let you know well in advance. >> president stansbury: questions from the board? >> commissioner driscoll: it's more of a request/observation, than anything else. to continfund -- that's part of plan. please stand by. please stand please stand by. please stand

>> that's just a suggestion to show your thought process.

>> we did not carry this out to look for positive data. >> i have a question about private debt. when do we expect to be at our allocation? >> five years. >> and our allocation% is ten? >> yes. >> how long until we get to that four% that you talked about? >> it depends on when the capitocapital is called. we do have some charts showing expected pacing. i would need to go back and look at the charts. i know the endpoint of when we get to ten, i don't know. i don't recall when we get to four. if i were to estimate, a year.

>> have we, or have you talked about -- the funds that we put money with, there are prior funds. they already have names that they are invested in. just posing a question, does it make sense to have some of our existing managers sort of create a trust or a site car so we can buy names in the secondary, if they fit certain criteria? so that we don't have to weighed a cycle to get in, or is a purposeful that we are trying to invest over the next five years? >> we are trying to take a measured approach for a couple of reasons. one is we don't want to take a lump-sum of vintage year risk. we want to spread that over a time series. the second reason why we are doing this, is this is a hot space right now.

a lot of capital is flowing out and large commitments are being made to private capital, private debt. people are looking for a place for good yield. there is a lot of thoughtfulness about the ramp up. about not being -- not going in too hard or too fast at a time where a lot of people are crowding into the space as well. i'm thrilled with the quality of the investments that we've made. this is performing really, really well. we are below double-digit returns, if you recall, last week in the presentation. but it is a hot space and i have some concerns about that. it does look like there is still a lot of capital that the space can still absorb. but i also want to see it. >> alan martinallen martin, anyn

this? >> i agree with phil's comments that it is a hot space. other people are discovering the attractiveness. others move their allocation from private debt from 10-20 and they are a 40 billion-dollar company. last week, that was the number 1 area that they talked about in terms of the opportunity to earn extraordinary returns in what is otherwise not an attractive market. i think bill is right. there are a lot of people coming into this space. i think that the amount of money that is still dislocated from the financial crisis is substantial. there is an ability to, eight, i am still very constructive about moving into that space. we should be careful. i am probably more optimistic than he which the pace -- and -- at which the pace we could do it. you certainly don't want to be overly hazed because a number of

managers that are very... those are not the ones you want to deal with. you want to do with the folks you have been through a cycle and know how to do it but it is a relatively new space. bottom line, you are right to adopt the allocation. bill is right to be cautious. i think we should push that part and i would expect to be doing more meetings with staff on ideas we have to help do that. president stansbury, we are not slowing this down, and i am not slowing this down. this has always been the expectation that to do this thoughtfully, add to spread the risk over a time series and overt managers coming to market, is to do this and five years. we could do it in two or three. we would just be a lot more lumpy in terms of, you know,

fewer managers. there'd be much larger allocations. we've been making commitments of 50, 75, 100. we are still planning to bring a couple of investments of four or $500 million. that has been slow going. there are not too many shops that can do that. we just haven't settled on one yet. >> okay. i do have some current issues. i understand the rationale. i think that there is a way to maybe go a little bit faster in this space without compromising quality. i feel like we've been talking about private debt for a while and i understand was made some commitments, but i would like to revisit this to see if there is, you know, a way to may be move a

little bit more expeditiously of what the board can give to you or what we need to do if it all makes sense. >> commissioner, i'm glad we are talking about this, because there is a great deal on this. i do think that it will be a very valuable resource. he has a really deep credit backbone. we have come a long ways. we are not in the eighth or ninth inning of making a large allocation to somebody like a gs oh, or carlisle. we are not in the eighth or ninth inning but we are no longer in the first, second or third either. >> i mean, i think it something worth exploring, talking to our partners about the ability to create a separate trust or a sidecar. may be we are willing to pick

up, you know, a block of it. i'm not saying bring back a recommendation to the board, i'm saying, please discuss it or think about it yoursel yourselff it makes sense, and then we can talk about it again. if it doesn't make sense, it doesn't make sense. >> we will pursue that. there are assets that european banks continue to need to trim to get off their balance sheet to get off for regulatory requirements. it is a large -- the largest shops that i mentioned that are absorbing those. investments that we have made so far have been more niche and specialist strategies where we have higher expected returns. some of the shops that i just mentioned, we expect more pedestrian returns. still, much better than a liquid credit. but not for the returns that we've gotten so far in the space. we will look at this. i do think again that we are further along with making one large allocation. were not in the eighth or ninth

inning. were no longer in the first, second or third. >> thank you very much. >> anymore comments or discussion from the board? ok. did i call public coent? >> no. >> any members of the public that would like to address the commission on this item? >> commissioner driscoll hit the nail on the head. bill is cherry picking another without knowing he is doing it. on the valuation, it is meaningless without the context of earnings. the 12 month earnings are 132. they are forecast to be 174 and december of 2019. that's a 32% increase. unless he explains how in a three percentage economy, they expect earnings to increase 32% between now and december 2019,

it's a meaningless number. to show you how meaningless it was... the market declined 55% from that day on. it's totally meaningless. this unemployment number is totally meaningless. he says it is the lowest at 50 years. the fact of the matter is, prime working age male population 25% to 54% is less than the ratio of the population employed right now than it was in the eighties and nineties. it's a meaningless number. people are dropping out of the workforce. the most disconcerting thing he said was about the asset allocation. the simple fact is, it right now the equity is 60%. simple fact 43.7, in public and 63% in private.

it is 49% forthose two. you are 11% above it, ok? don't pretend you are there when you are not there. i'm not saying you can get there overnight. bill is an upside guy. that's great. nine out of ten years that's great. you have to hire a chief risk officer who understands the downside. allen wasn't it and he's not going to find it in the normal pools that he fishes in. >> time. thank you. are there any other members of the public that would like to address the commission? seeing then we will close public comment. next item, please. >> item ten is a discussion it item. >> good afternoon commissioners and welcome.

i'd like us to go through the monthly activity review report that is before you. just a brief refresher, on the first page, you can see our current assets. we have about 3.4 billion with the plan. moving on to the next page, you can see benchmark performance of our investments, currently. on page 3, we have some participation rate information, as well as employee information as well, that includes a number of folks that are currently contributing, on the number of folks who are retired or terminated. we have approximately 30,000, or 40,000, 38,000, actually, participants in the plan at the moment. moving on to slide four, it shows a stable value crediting rate. we report out on this because the stable value fund is nearly a third of our assets.

and so we decided to report on the crediting rate on a quarterly basis. moving on to slide five, we have our total plan allocation. this is how participants are allocating their investments across the asset classes. and slide six shows the actual demographics from an age standpoint. you can see that they are. finally, on slideseven, as you know, we have rolled out the loan program in august of 2016. it has been over a year and the loan policy states that participants can take a second loan after a 12 month waiting period. so since then, we have seen a little bit of an uptake in the loan program. that concludes the monthly activity report. i'd like to ask the commission if they have any questions. >> any questions from the board? mr driscoll? >> the credentials help. please start adding the number of participants in the target date funds, not just the goal makers.

you can make it the aggregate. >> right. so the participant assets on the targeted funds and to the accounts are provided with bold maker -- are provided that the gold maker assets are not separated out. is that the request? >> i say that -- i see the gold maker number, but that does not include the target funds. >> that's correct. >> there is a similarity in that product. i just want to see if those funds, how much of the participants are using them. >> the targeted funds or the gold making funds? >> the targeted funds. they obviously want us to see that number. >> understood. absolutely. commissioners, i also have a brief update for you on our

third party administration r.f.p. as you know, we recently released it in mid april. that was last month. i'm happy to report that everything has been completed and posted, and received on time. we have received a total of four builds. they're all from major players in the state. i would like to ask council that can say who the bidders are. i can't say who the bidders are? ok. ok. so one of them is obviously incumbent but that is good news. we will be doing the scoring anticipate presenting three summit finalists to the deferred compensation committee for interviews on july 25th, that will be a long meeting. and post review the rfps will be available for inspection on-site in the event any of the commissioners would like to see them. we anticipate a formal recommendation to the board in n august or september depending on any additional due diligence and

site visits and reference checks to the recommender. and i think that concludes my report. >> don't be surprised if it is four and not just three. don't be surprised if it is just two, ok? >> when you talk about finalists? >> semifinalists going to the committee. >> the administrative staff is here. just a question of information for service to the members, i had a member call me yesterday who said i'm going to go see a financial advisor. do you think i have all the information on the website for my benefits and is there some -- sufficient information on our investments on the deferred website? and i think -- and what -- this

person has been around for a while so he referred to the blue book. remember the bluebook? i'm just going to ask you, did you think, that on our website there is sufficient information that they can just download it and take them go look when they go to see their financial advisor or whoever they are dealing with? that there is no reason for them to call and ask for anything else? >> i believe that there is more detailed information on the current website once you've logged in to see your account, and then you have to go elsewhere to find a performance -- the performance numbers. i remember the bluebook, but i believe that there is a greater access to more letters of detail on investments that you've made, and where you hold your money than was available. >> and all the survivor benefits

are broken down by classes? like, categories? tier one, you tear two, heere three? >> that's the benefit plan. rather than the deferred comp plan, now i believe, certainly with the secure member or sole, even your financial advisor, if you carry your passport cannot model away the benefits estimates and have a much better idea of what your pension would look like five years from now, three years from now, and so that i think it is a powerful tool that has been out there for two or three years. on the deferred comp side, every vendor that we've engaged, obviously had different websites that i believe, i don't think we are receiving complaints. i think what i heard is sometimes it's difficult to find them. you have to go