we're beginning the meeting of september 8th, 2021, at this time. due to the covid-19 health emergency and the health recommendations issued by the san francisco department of public health, governor newsol and mayor breed has lifted restrictions on teleconferencing. this will ensure the safety of this board, staff, and the public. it may not be as seamless as we would like it to be. a reminder to board members and staff to mute themselves when

roll call [roll call] thank you, we have a quorum. >> commissioner: okay. i want to make an announcement regarding the agenda today. the order's going to be changed in a little bit. i'm going to take item 4a followed by 4c, then 4b.

4b at about 230:will be continued and we will go into open session at 2:30 we will take item 17 out of order and we will then continue 4b in closed session after item 17. so that's for so everybody can plan their time and thank you. >> for your information, i don't know whether you heard it, i have a hard stop at 4:00. >> yes, i did. >> okay. all right. >> i don't. i think we shouldn't be breaking up. >> anybody else on that?

>> i agree. >> unfortunately, in order to be able to -- >> can we push it to the end? >> pardon me? >> can we push the discussion with legal counsel to the very end? >> these are -- the first two are going to be fairly quick. why don't we just stick to this. we'll stick to 4a and then followed by 4c and then 4b and i think that any concerns will be when we have our meeting on 4b. thank you. any correspondence or communications? >> i have number two communications. due to the covid-19 emergency

and to protect board member, the employees and the public, the san francisco retirement system is closed and members participating in the meeting remotely. this is precaution is take ton the various city, local, and state directors. board members will be attending the meeting via video conference and participate in the meeting to the same extent as if they were physically present. public comment will be available on each item on this agenda. each speaker will be allowed two minutes to speak. comments or opportunities to speak during the public comment period are available via phone by calling (415) 655-0001. access code 1464119135 then pound and pound again. when connected, you will hear the meeting discussions and you will be muted and in listening mode only. when your item of interest comes up, press star 3 to be

added to the speaker line. best practices are if you call from a quiet location, speak clearly and slowly, and turn down your tv and radio. president. >> president: yes. thank you very much. commissioner gandy is sending a message she can't get in. >> commissioner: i just got in. >> president: oh, he did. thank you very much. were there any communications? >> public comment. >> president: go ahead, public comment. >> callers if you have not already done so, press star three to be added to the queue. for those already on hold, please continue to wait until the system indicates that you have been unmuted. moderator, are there any callers on the line? >> madam secretary, there are no callers on the line. >> secretary: thank you.

hearing no calls. public comment is closed. >> president: okay. thank you. next item. >> secretary: thank you. item number three, action item. those pursuant to administrative code section 67.10b as to whether to invoke the attorney client privilege and conduct a closed session for existing litigation with legal counsel. >> president: okay. i'll entertain a motion now to go into closed session. >> commissioner: so moved. >> commissioner: second. >> president: been moved and seconded. roll call. >> secretary: public comment? a reminder to callers to press star three to be added to the queue. moderator, are there any callers on the line? >> madam secretary, there are no callers on the line.

>> secretary: thank you. hearing no calls. public comment is closed. roll call vote. [roll call] commissioner bridges? not arrived. commissioner driscoll? >> commissioner: aye. >> secretary: commissioner safai. absent. commissioner sansbury. >> commissioner: aye. >> president: aye. >> secretary: thank you. we have five ayes. the motion passes. >> president cociano. we need you to announce we're

going into closed session or the other two items and take public comment on those two items also before we move into any of the closed session. >> president: okay. thank you very much. we'll need public comment on items 4a, 4b, and 4c. >> thank you. >> secretary: thank you. a reminder to callers if they have not already done so to press star three to be added to the queue. moderator, are there any callers on the line? >> madam secretary, there are no callers on the line. >> secretary: thank you. hearing no calls. public comment is now closed. president. >> president: okay. everybody log out of here. we're going into the closed session and we'll go to closed session 4a first

>> president casciato: would you give the report -- roll call, please. >> thank you. >> commissioner bridges: present. >> commissioner driscoll: present. >> commissioner gandhi: present. >> commissioner heldfond: present. safai absent. >> commissioner stansbury: present. and president? >> president casciato: present. >> thank you, we do have a quorum. >> reporting that on item 4a, regarding anthony garibaldi, the set aside the hearing officers decision denying the application

and decision denying the petition for rehearing and remand the case with the following directions. remand the case to the office of the administrator hearing to request that the hearing officer offer a decision without hearing consistent with the determination that garibaldi was incapacitated of his job due to medical-related conditions and there was no -- that accommodated his work restrictions. two, present the hearing officer's decision on remand to the retirement board after issuance of the decision. the motion was as follows, president aye. board member bridges aye. driscoll aye. board member gandhi absent. board member heldfond aye.

stansbury aye. thank you. >> president casciato: now we need the motion to -- on whether to disclose the discussions held in the other two closed sessions. >> i move that we do not disclose the decisions -- or discussions in the prior two meetings. >> i secretary. -- second. >> moved and seconded. any discussion? any public comment? >> thank you, a reminder to any callers to press star 3 to be added to the queue. moderator, any callers on the line? >> madame secretary, there is one caller on the line. >> thank you. caller, please state your name,

your two minutes begins when you speak. hello. caller, you may begin. >> i'm actually waiting for a different item or general public comment. >> thank you. this is in regards to the closed session. moderator, do we have any other callers? roll call vote, please. >> commissioner bridges: aye.

>> commissioner driscoll: -- >> commissioner driscoll: aye. >> commissioner gandhi: aye. >> commissioner heldfond: aye. >> supervisor safai: aye. >> commissioner stansbury: aye. >> president casciato: aye. thank you, we have seven ayes, motion passes. president, item number 17. >> item 17, action item, renew and approval of amendments. this item was continued from the august 11, 2021 retirement board meeting.

yes, commission we presented proposed amendments to both the retirement board terms and reference as well as the executive director terms of reference at the august 11th board meeting. and after discussion among the board, we were directed -- staff was directed to work with the governance consultant and the deputy city attorney to come back with amendment to the policies that would provide the board an option to either engage or hire an executive director, a c.e.o. only, or a merge c.e.o.-c.i.o. position. so we are bringing back the proposed amendment now just to the executive director terms of reference with these amendments we would not need to amend the

retirement board terms of reference, so we have provided the proposed amendments that basically by definition include within the term executive director either a c.e.o. only or a combined merged c.e.o./c.i.o. position. on page 7, we carve out if, in fact, the board would be pointing an executive director -- appointing an executive director who served only in the c.e.o. role, that this c.e.o. would have the ability and authority to hire a c.i.o. with that, i'll be happy to answer any questions that the board may have. >> president casciato: any questions from the board?

hearing none, public comment? >> secretary: reminder to callers to press star 3 to be added to the queue. moderator, any callers on the line? >> madame secretary, there is one call otheren the line. -- caller on the line. >> secretary: thank you, caller, please state your name. your two minutes begins when you speak. >> thank you, this is clare and i'm representing the retired employees of the city and county of san francisco. we sent you a letter that i hope is entered into public comment and in your packets. in addition to the points brought out in our letter, we would like to point out a number of things that, again, we actually believe that while you are changing the terms of reference that they violate the spirit of the charter and maybe even the letter of the charter with regard to separating out benefits administration over all

administration from the chief investment officer position. we want to point out that it is your personal liability, it is your fiduciary responsibility if taking these actions cause any harm or negative situations to the pension plan and to our benefits. we clearly believe there is a conflict of interest with these two areas that are very separate. and that all positions are funded from the trust so, therefore, you should not be under any pressure from external sources with regard to setting the wages or any other financial obligations with regard to these two positions. it's a matter of maintaining our funds at the level that it is and at the financial positive

situation that is 100% market rate funding. we also are concerned that since in 2035 you will no longer be accepting contributions from the city and county with regard to our pension plan, we think that points out more than ever that the investment officer -- chief investment officer needs to be separate and needs to devote 100% of his or her time during that position in order to maintain our pension plan at the level of funding and -- the level of funding and status that it has achieved. we believe that there are complex investment skills required for the investment officer position and that those are unique and separate from anyone who does overall general administration or benefits administration and they're at very different ends and

experience levels with regard to the c.e.o. position. and, again, that person should be working -- >> time has expired. >> secretary: moderator, any other calls? >> madame secretary, there is one call on the line. >> secretary: thank you. caller, please state your name, your two minutes begins when you speak. >> yes. this is fred sanchez, president of apgar benefits. before i speak on this, i would like to actually probably hear more about it from the experts as far as the terms of reference. if this is simply providing flexibility that it's not committing them to putting the positions together or keeping them the way they are now, i think i need to hear more from

the experts. that's all i want to say. >> secretary: thank you for your call. moderator, any other callers on the line? >> madame secretary, there is no more callers on the line. >> secretary: thank you. hearing no calls, public comment is now closed. president? >> president casciato: thank you very much. board members, any comments? jay, you have other comments? hearing no comments, any action? >> the terms of reference to the executive director to include the chief investment officer, chief executive officer position. >> if that was a motion, i will second it.

>> president casciato: it's been moved and seconded to adopt staff recommendations, is that correct? >> yes. >> president casciato: any discussion? >> i have one comment. i want to thank the staff and other consultants who are been involved in this debate which has been going on for over a year. the whole process is more than one year, but the last many months trying to figure out what is the best structure for the system, which is not over yet. making our terms of reference enough to find the talent we need to run the system, we can do so. >> okay. thank you very much. i echo those comments. appreciate it. if there isn't anything further, i'd entertain a motion? >> move to approve.

>> i think -- i think joe and -- >> joe and brian made the motions. if there is no other comments, then we'll call for the vote. >> secretary: roll call vote. >> commissioner bridges: aye. >> commissioner driscoll: aye. >> commissioner gandhi: aye. >> commissioner heldfond: aye. >> supervisor safai: aye. >> commissioner stansbury: aye. >> president casciato: aye. >> secretary: thank you.

we have seven ayes, motion passes. president, which item would you like to start off with? >> president casciato: jay is going to give me the items that need to get done before we lose a quorum. >> item 18, which is approving the proposed revisions to retirement board resolution 44. >> item number 18 -- >> president casciato: let's go for item 18. >> approved proposed revisions to retirement board resolution 44. >> good afternoon, commissioners, you have before you a number of changes to the resolution 44 document which is

the general grant of authority to designated staff members to conduct certain business transactions. we haven't updated it in a while. and if you saw from the red line there, there are quite a few of our staff members who are no longer with us. and so we wanted to update it to account for the new staff. and we also wanted to clarify, particularly in 44d, which designates certain authority to staff under direction the types of transactions that those designated staff members are, in fact, authorized to conduct. we have found over the years that there was a little bit of confusion as to what some of the staff could and could not do pursuant to the designation of authority, so in this particular revision, we've clarified that.

the most significant change in my opinion, is that we have added our investment operations director to the authorized persons under 44d. as you may recall, it has been in the last year or so that the board has approved and we were able to successfully hire an investment operations director. and adding him to this particular branch of authority is in alignment with what he would normally be doing in the private sector in the normal course of his business. so we're trying to update it to show the way we do business today. and i'm happy to take any questions. oh, and there is one typo that we've had over the years and that is with respect to the authority under the constitution. we've got it backwards.

and we will fix on the final product the actual correct authority under the california constitution. i'm happy to take any questions. >> thank you. >> president casciato: thanks. any questions of karen? if not, we'll need to -- oh, public comment, please. >> secretary: callers, if you have not already done so, press star 3 to be added to the queue. moderator, any callers on the line? >> madame secretary, there are no callers on the line. >> secretary: thank you. hearing no calls, public comment is closed. president? >> president casciato: if there is no comments, i'll entertain a motion. >> move to approve.

>> second. >> president casciato: okay. commissioner gandhi second. roll call vote, please. >> secretary: thank you. commissioner bridges? >> commissioner bridges: aye. >> commissioner driscoll: aye. >> commissioner gandhi: aye. >> commissioner heldfond: aye. >> vice president safai: aye. >> commissioner stansbury: aye. [please stand by] [please stand by]

>> president casciato: thank you, very much. public comment, please. >> a reminder to callers to dial star 3 to be added to the queue. moderator, are there any callers on the line?

>> there's one caller on the line. >> clerk: thank you, caller, please state your name and your two minutes begin when you speak. >> thank you, there is claire again from the retired employees of the city and county and i just want to say thank you. we're happy to see this report being put forward now so that we can announce to all of our members that they will get this supplemental cola. thank you to the staff and to everyone who worked on this. we really appreciate it and especially to all those in the investment section who made this happen. thank you. >> clerk: thank you for your call. moderator, are there any other callers? >> madam secretary, there are in more callers on the line. >> clerk: thank you, hearing no calls, public comment is now closed. >> president casciato: go ahead. >> may i ask a question? janet, my understanding of the

supplemental call, not only do we have to meet our targeted rate of return, but we have to have enough excess earnings to then pay it and i see the calculation that is in here. at end of the day, if we were just to say we need to hit a return number of 7.4 and there's the excess on top of that that we have to hit. what does that come out to? eight? >> well, there's a conservative estimate of $315 million there and if you were to divide that. our assets are high. that answer has been smaller in years passed. i think it's been as high as 1%. right now it looks like about a

tenth of that. >> would you mind following up off line and giving me a note. >> that's a good idea. thank you. >> thank you so much. >> president casciato: thank you. watch out for your microphones, we were getting a bleed over there for a second. no more public comment? we need a motion to adopt the report. and i'll take the opportunity just to say thank you to everybody from staff, all staff, all sides of it. for the great thing and remind the public that our staff are our members of our system and future retirees. thank you. we need a motion. >> we adopt staff's recommendation. >> president casciato: thank you, very much, commissioner bridges.

anybody second? >> second. >> president casciato: second commissioner. roll call vote, please. >> clerk: thank you -- [roll call vote] >> mr. driscoll? >> there's something wrong with the microphone on this computer. >> clerk: i can hear you now. we're doing a roll call vote. [roll call vote]

>> clerk: you have seven ayes, motion passes. >> president casciato: next item is item 15 the request toen close a combined campaign correspondence from the mayor's office. >> clerk: item number 15, action item. request to inclose combined charities campaign for respondents in the september 2021 retirement allowances. >> president casciato: this is a routine request that we have done over the years, we include for the retirees an announcement the the city's combined charities campaign and that we ask them any retirees who want to contribute, they mail their checks directly to darlene, darlene compiles them and then

forwards them onto the city. so, we would recommend that the board approved this for the pension check that would be going out at end of this month, september, 2021. i'll be happy to answer any questions. does this require a motion? >> president casciato: it would. public comment first. >> ok. >> clerk: a reminder to callers to press star 3 to be added to the queue. moderator, are there any callers on the line? >> madam secretary, there are no callers on the line. >> clerk: thank you. hearing no callers, public comment is now closed. >> president casciato: thank you. there's no questions from

commissioners, if not all entertain a motion. >> so moved. >> president casciato: motion moved to adopt staff recommendation. >> yes. >> president casciato: seconded by gandhi. roll call vote, please. >> clerk: thank you -- [roll call vote] >> clerk: thank you, we have seven as and the motion passes. >> president casciato: next item we should do the consent calender since that is time sensitive which is item number 7. >> clerk: item number 7, consent action item consent calender.

>> president casciato: call for public comment. >> clerk: moderator, do we have any callers on the line? >> madam secretary, there are no callers on the line. >> clerk: thank you. hearing no calls, public comment is now closed. >> president casciato: any comments from the board members or any items that would be taken separately or anything? if not i will order a motion to adopt the consent calender. >> so moved. >> i move to adopt the consent calender. >> president casciato: thank you. roll call vote. >> clerk: -- [roll call vote]

>> clerk: thank you, we have seven ayes, motion passes. >> president casciato: we have two remaining action items, one is the minutes from the august 11th meeting and then another one is investment items which i was sort of saving for the last action item which is item number 9. recommendation to adopt the euro dollar and pound guidelines. so i would suggest maybe we do the minutes and then go to item number 9. minutes are number six, item number 6. >> clerk: item number 6 action item, approval of the minutes of the august 11th, 2021

retirement board meeting. >> president casciato: public comment, please. >> clerk: moderator, are there any callers on the line? >> madam secretary, there are no callers on the line. >> clerk: thank you, hearing no calls, public comment is now closed. >> president casciato: thank you. unless the commissioners have a question, i'll entertain a motion. >> president casciato: approving second. >> second. >> president casciato: thank you. commissioner gandhi. roll call vote, please. >> clerk: thank you -- [roll call vote]

>> clerk: thank you. we do have six ayes, motion passes. >> president casciato: i believe item number 9 is the last action item. is that correct, jay? >> that's correct. >> clerk: action item 9. recommendation to adopt euro

dollar and pound sterling guidelines and composed changes to the ud dollar guidelines to be securities lending col attar at reinvestment account with bny melon. >> i'll be brief here. in february of 2020 we reinstated a security lending program with bny melon we'll talk about the key features and performance later on this afternoon. what we're addressing here today is an oversight when we established the program, currently, the program only accepts u.s. dollar for cash collateral, however, euros and great british pounds have become a preferred form of collateral for non u.s. equity collateral. so we're asking to add that to the portfolio with the believe that our ability to lend out non u.s. equities will expand from a fairly low utilization rate to 12% to two to three times that

amount. guidelines for these have been attached for your review. again, these are implementation details but in the interest of transparency i wanted to bring them forward. anna lang can speak more and we have michael mcinnis available to answer any questions. >> president casciato: any questions? >> just a quick question. so, i'm concerned about the rates and on the euro dollar and how that will work in the accounting port. did they talk about that at all. the rates were negative and they couldn't account for it so i'm curious what they put in place since then?

>> certainly with the rate climate in europe there are negative rates. >> that's what i'm concerned about. >> so, this is a spread creation exercise. so the revenue that is earned is the difference between the yield earned investing the cash collateral and the rebates owed to borrowers. so, one of the paramount things in the program is to create a spread that's meaningful for you and for the participants. so, yes, the yield on the euro dollar account would be negative but the cost of the cash would be an even more negative number, right. so the rebates that we pay is a negative numberer. the borrowers are going to pay you a premier jump for borrowing your securities and that's the way the spread works on the euro

dollar investment. >> president casciato: it's the spread here that's relevant, not the direction of it? >> right. >> so it's a well worn path for us. euro dollar investing fell out of favor after the events of 2008. over the past number of years, we've seen more and more participants on the lending side come in and want to accept euros and borrowers in various jurisdictions like to try and structure their lending activity potentially by the currency of the security they're borrowing so it just provides another attractive at let to gain intra mental income in a risk controlled manner. >> exactly. that's why i asked the question, usually it's in the currency and the country of denomination and it's an easy way to track it in terms of accounting as well as

just doing the whole, i guess the asset liability management part of the program. >> so, yeah, that's a great point. whenever we look at that, the hair cuts potentially are different depending on exactly what is being lent. the collateral hair cuts so from a risk perspective it's accounted for. when we're looking on the loan side, and the investments side, you have the well coordinated approach maintaining exactly where we are with the yields and that feeds into the lending system so we have a good idea of what the cash is is earnings and about what rebates to earn you a meaningful spread. >> that's what i need. you are getting daily accounting on that and you can track it and you can benchmark the assets? >> absolutely. we can show you your field every

day on it. >> ok. >> in the past, that wasn't the case as you know, ask that's where most people took their losses. >> go ahead, i'm sorry. >> particularly in the european market, that's where most of the losses occurred because you weren't able to benchmark or a cue account for the asset liability part of the program so therefore, it was a mismatch in terms of what you would invest. >> i think the best way to think of it is, while the rates situation, the yields are certainly different than what wore doing now on the u.s. dollar side. fundamentally, what we're striving to accomplish isn't. so, it's the daily accounting, it's one of the things that has been changed across the industry and definitely here in our program, where there's daily

transparency in terms of what the yields are and what the liquidity is so on and so fourth. that's a completely coordinated activity today between the cash reinvestment side and then what the loan side could support. >> commissioner bridges, we will be opening two more accounts, one for euro dollars and one for sterling and each account we will set up exactly the same monitoring and reporting. >> that's what i was looking for. thank you. exactly. >> it's exactly the same time guidelines if you see within the same money-market like expectation and this same collateral requirements and the same importing. >> thank you. i think it's a good program. it's just the accounting and the mapping is very important. it's also important to kept daily accounting accurate because of the fluctuation and the currency.

>> it's a very good point, commissioner bridges, because if you remember last time, it was the co mingling a counting that got us into problem. >> exactly. >> exactly. here we're saying, separate accounts. separate accounts for dollars and separate accounts for euro, dollar and separate for pound sterling. >> ok. thank you so much. >> with separate guidelines that we are determined. >> that you monitor on a daily basis. >> right. well, we don't monitor, we monitor it. >> as custodians. >> we have access to it and we can go to on-line reporting and access this on a daily basis and we view it monthly and quarterly according to our press use and procedures that we approved last year.

>> president casciato: they were separately managed accounts and then conservative investment guidelines and those were the three features and i didn't call that out in advance of introducing this idea and we'll talk more about it later on this afternoon. >> it's in your write-up so thank you very much. thank you for the update and thank you for providing additional information. i appreciate it. and i think it's a good program. i think it's solid. most programs like this are all about having the right mechanisms in place to track and make sure that you can monitor it on a day-to-day basis in terms of collateralization with the currency going up and down all the time. >> thank you for the questions. >> president casciato: thank you, very much. public comment at this time? >> clerk: thank you. moderator, do we have any callers on the line? >> madam secretary, there's one

caller on the line. >> clerk: thank you. caller, please state your name, your two minutes begins when you speak. >> hello, this is claire again just in case you are wondering if we have a message from retirees to the board. first of all, i want to thank anna for the expertise but i also want to also thank commissioner bridges for her expertise on the board and what she brings with regard to the investment section and this is one example of where you really need the investment professionals and you need this person to be someone who is monitoring these systems and those how it works and can speak up like or get involved as commissioner bridges has done and this points out to us the need for again, the separation of these two positions and that is all in case you are wondering, that's the only point we wish to make and to go

forward with this very interesting program. but again, it is your fiduciary responsibility and liability with regards to this. please keep these positions separate. thank you. >> clerk: thank you for your call. moderator, are there any other callers on the line? >> madam secretary, there are no more callers on the line. >> clerk: thank you, there are no calls, public comment is closed. >> president casciato: if there are no commissioner comments, i'll entertain a motion. >> i will accept the report. >> president casciato: that's commissioner driscoll. >> i second. >> president casciato: commissi. roll call vote, please. >> clerk: -- [roll call vote]

cleve we have six ayes and the months passes. >> president casciato: that should conclude the action items e. is that correct? >> that's correct. >> president casciato: i just want to make sure from the commissioners, i know that commissioner alphonse as a hard stop but the other commissioners, i hope they can hang in as we get through the presentations. thank you. >> i would suggest we go back to the beginning of the agenda item number 5, which is general public comment. >> president casciato: right.

let's call general public comment. >> clerk: item number 5. general public comment. >> commissioners, we received two communications that were requested to be read into the record. one was an e-mail received from johnston son which reasons as follows. at your august meeting, you were elated that you have good investment returns. and i'm very disappointed your chief investment officer resigned. for the past 10 years, you board members and investment staff have done a good job at out performing public pension funds. if 10 years ago your chief investment officer custodian made a passive investment in the s&p 500, she would have a one-year return of 36% and annual return of 15%. your former chief investment officer was hired in a bull

market and he resigned in a bull market to go on to and he has dollar sign-in parenthesis greener pasture. you should offer to your investment consultant providing he would take a big pay cut. keep up the good work with best regards from john stenson. we received a letter referenced by our members of the public who have been speaking and that was the letter from john, president of the retiree employees of the city and county of san francisco organization and we provided you a copy of the letter via e-mail and if you would like i could go ahead and read it into the

record otherwise we will make sure that the text of the letter is included in the record of the meeting. >> i think we can include it in the text unless someone specifically wants it read. >> i hesitate reading it because it exceeds 150 words and generally speaking we limit written public comment to 150 words so, thank you. >> clerk: callers, press star 3 to be added to the queue. >> there's one caller on the line. >> clerk: thank you, caller, state your name. your two minutes begin when you speak. >> hello, this is fred sanchez president of protect our benefits. i just like to say that i would

strongly favor the current executive director and chief investment officer structure. they have excellent personnel both on the administrative side and the investment side of the house and hiring at the highest level from outside would be a real challenge as it's functionally wonderfully now so i see no need for change as pob we monitor more than just performance, we watch the allocation strategies and they change as investment opportunities change and they're very good at being adapting their strategies and it's number one for a reason. it's because they continue to adapt to an ever changing global investment market.

i think leadership needs to be creative and dealing with salary limitations and dealing with hr and with the charter. i know the trustees have a difficult decision and they're all well intended and they work very hard so, you know, i'm going to support whatever really turns out but i favor as the way it's going now. if it's not broke don't fix it and bill coker has done an excellent job and they developed good staff and you have someone raise up to those positions and i think he just really need to act what is in the best interest of the membership and so, say want you to be flexible and

think and i know you guys can come up with a good strategy to keep things going the way they are now. thank you very much. >> >> there's one caller on the line. >> provide your name. two minutes begin when you speak. >> i just want to back up everything that fred sanchez said for p.o.b. that is the same position that reccsf also is in favor of and we urge you to read our full letter basically it outlines some of the points i've already made about the system. it's not broke. it's doing very well. don't fix it. and the fact that the positions need to be separate and we would like you to very seriously take our perspectives into

consideration at this morning's meeting we had a number of reccsf meeting and we had our own members who used to do hr who came forward and commented on the fact that for their understanding and their experience, these two positions need to remain separate as well and they have looked into the charter language. so we are using our expertise within our membership and to review this and we strongly urge you all to consider our perspectives for the benefits of all members and thank you fred for your comments and thank you all of you for your time and dedication to these efforts. during covid, it's going to take longer to fill these positions, we understand that. we think it's worth waiting. our system is number one for a good reason. and we need to stay the course. thank you, very much. >> thank you for your call. moderator, are there any other calls.

[please stand by]

class by 27 publicfunds larger than $1 billion . you'll look across that and on the next page you won't find a number where you're worse than number two so extraordinary performance . for the one year period your return of 30.7 percent was the top performing public funds in the investor.

universe. by contrast a public phone was up 26.9 percent . calpers i would not suggest is a good comparison but they were up 21.3 and cal was up 27.6 percent . the most important comparison on this page is compared the returns with the assumed rate, 57.4 percent and you've significantly defeated your assumed rate invirtually every period . the second comparison look at your returns versus either an index 6040 portfolio or a 6030 10 portfolio. meaning if you put 60 percent of your money in globalequity index , 30 percent in global bonds index and 10 percent in realestate , you will see again

for every period shown here performance. if we look at five years for example you generated 13.98 percent per annum versus nine point 52 48 6040 index portfolio. that difference equates to roughly $5.8 billion in value because you've chosen to have a more diversified strategy than simply indexing thetotal . finally we don't control the markets but we do control how our portfolio responds to changesin the markets by our asset allocation strategy . we do select managers and we do tactically position the portfolioversus our long-term targets .the policy index which is the second line on this page indicates the results we would have achieved if every manager met its benchmark and

the portfolio was rebalanced continuously to target. so outperformance versus policy represents the value we created by choosing good managers or position in our portfolio slightly different for the long-term target. again, if you look at the five-year number 13.98 percent versus the policy of 10.93 percent, that difference in dollars is roughly $3.3 billion added through manager selection andpositioning . we have chosen to have a diversified portfolio to achieve more consistent results

rather than expose the portfolio to potential drawdowns in public equity markets. you know roughly 2 32 percent of our assets are targeted to private markets. we measure the consistency of the results we've achieved by standard deviation of realized returns. you can see in the tables to the bottom right the volatility of san francisco's portfolio is in the lowest 6 to 7 percent of our peers. that is very important when you are a fund that pays out more in benefits than you take in in contributions because you want to make sure when those bad times happen you don't draw the portfolio assets down to a point where they recover. finally we calculate risk adjusted returns by using the sharpe ratio which is simply the return minus the risk re-rate in this period is close to zero divided by the standard deviation. so it's literally returnper unit of volatility results . your results ranked in the top two percent of the. so we've chosen to have a lower

volatility portfolio and despite that in a period where marcus did well we generated extraordinarily high absolute returns as well as risk adjusted returns. if you go back to your fiscal year 2021 results, 33.7 result represents an investment game in the last year of 9.1 billion dollars. as of 6:30 your fund was valued at an all-time high of x .46 billion, up from 26 billion as of last year. as you know the market value of your assets now exceeds your actuarial liability . i've been searching to find out how many others in this country haveachieved that and i can only find six .so again, the performance overthis period has

been quite strong .the next page shows you the results for 15, 20 and 30 years and you will see virtually every time period you're in the top one or top two percent of yorkshire group. i'm going to pause there. that's the overview of compliance and how we achieve those results but any questions on those topline performance? if not ... go ahead >> president: anyquestions from any of the commissioners ? go ahead alan. >> if we go to page 13 this is the compliance page. numeric column 2 is the percentage of the portfolio allocated to asset class as of six 30 and column number two is the long-term profit the board

has adopted with column 4 and 5 showing theranges that have been approved . all your allocations fall within the ranges and are close to the interim policy target. the only exception is private credit at 2.75 percent versus an interim target of 54 below. that's an asset class that's been working hard to build up and private equity at 27.55 which isslightly over the long-term target . if we turn to page 15. >> president: alan, i'm sorry. one correction, private is at aboutfive percent . but the challenge remains there as the pool gets bigger we have to come up with new investment strategies. >> the wonderful thing about private credit is you chose back in 2017 to move out of

public fixed income markets which as you saw have generated two or three percent returns and you put that money largely in private where it earned 12 to 14 percent that's been a strategic move and in a world where we are concerned about rising interest rates , the measureof investment professionals in terms of sensitivity to rising rates is called duration . the duration of your private debt portfolio is in the neighborhood of 2 to 3 which would mean if you see a one percent increase ininterest rates , you'd expect to see a 2 to 3 percent decline in the value of your private debt portfolio which isless than the yield . compare that with you put your money public fixed income, the duration of the bluebird is about 8.7 which is at an all-time high meaning if we

were in public markets and we have inflation we could see as much as a nine percent lossin the value of the portfolio . not only has this been a good strategicmove to date , it positions us well should we se inflation which of course is beginning to show up . on page 15, you can see simply the growthin assets over time . the fund pays out roughly 550 billion more in benefits that are contributed each year. that's typical for immature to fund benefit plan and it's why you have a pension fund. if you look at the three year number you've paid out almost 2 billion more thanyou've taken in but you've earned over $12 billion in returns from your investment program .

it's worth noting if you were to divide the 550 million in the next payout by theseasset values , you would get a number in the neighborhood of 1 and a half percent, 1 1/4percent . most plans are up in the 2 to 3 percent range so your liquidity relative to your appears is strong enough to enable you to take on the risk of being in private markets . in terms of the next few pages i'm going to take you to page 17. these few pages show you in detail how you've performed versus your peer group so on page 17 that's the fiveyear chart. the vertical axis is returns . we'dlike to be towards the top . the horizontal axis is the volatility of those returns. we'd like to be towards the left. every point on that chart is a public fund greater than $1 billion and you are the black

square so you can see your solidly one of the highest performing funds in this universe and you've taken considerably lessvolatility risk than your peers . how did we get there? let me take you to one other chart and that is page 23. many of the numbers we show you are relative ending six: 30 and you have this phenomenon called the end period value. if you did well the last year it tends to mean you did well the last threeyears and last four years so on page 23 , you can see your returns broken down by fiscal year for the last five years. and what is extraordinary is whether the markets were up or down, you tended to be in the

top 1 to 2 percent with no worse from the top 30 percent from fiscal year 2020 which was decidedly downmarket so we've been able through selection and positioning to do well whether markets have done well which they have or not. on the next page you see the returns versus policy quarter by quarter. and that blue line is the rolling five-year excess return. clearly turning back at the fourth 1:45thousand 17 , that line is sloping upwards meaning you are consistently outperforming your policy benchmarks quarter in and quarter out. that's what led a lot to the extraordinaryperformance . the charts on pages 25 to 27 c to decompose that outperformance to how much came from positioning and how much

came from manager selection. again, in the interest of time if we go to page 27 and look at the five year results, you'll recall from page 12 your total fund return of 13.38 percent per year over five years exceeded your policy returns by 2.36 percent and on this chart been we decompose that into how much wasallocation affect , meaning overweight to asset classes that did well or underweight to asset classes that did poorly and how much of it came because you picked managers did better than their benchmarks . so the allocation affect was .2 percent. you don't want that number to be too big because if it were it would say you're taking a lot of positioning risk and

market timing but here again you see very consistent outperformance on allocation. more importantly the management selection effect is over 2 percent and that is not a fee. you can go down the list and in virtually every asset class a managers you've chosen have outperformed that asset class benchmark with the sole exception of absolute returns. i would remind everyone that the benchmark for absolute return is t-bills +5, a very aggressive benchmark and despite that you're only slightly under that. so again, it's gotten strong performance from portfolio positioning . the manager and has been extraordinarily high. i would close by taking you to page 87, where were going to look in a little more detail.

i'm sorry, page 38 where we will look more in detail on how you did by asset class. this page is a busy page but for each asset class we showed the percentage of theportfolio, the annualized return and ranking , thevolatility and ranking , the outperformance versus the risk taken called the annualized jensen out for and that ranking and tracking error which is the volatility of that result so similar to the sharpe ratio for your portfolio, the information ratio is the return or unit of volatility risk for the asset class and you see on the far right when we look at asset class, public equityover five years you earned 17.26 percent . that was the top one percent of your peer group and it's also in the top one percent information ratio.

here you will notice you took a little bit more risk in your public equity portfolio and the index butagain , you earned a very very high return. us equity tops 13 percent. developed market equity over the five years in the top half of some of the managers contributed to that result have been defunded so the nearer term results are a little bit better. emerging market equity topped eight percent, global equity topped eight percent essentially across-the-board in every asset class we've been choosing managers that have done better than their peers. not as strong as the total fixed income level but much of that positioning of the portfolio and not manager underperformance and you can

see emerging market debt is very well. high yield is trade a little bit burst versus the index. we have a more conservative portfolio. if we go to private markets, private credit on page 40. you've earned over five years 11.19 percent per annum, remembering if you look above that core bonds over that same period, the index has generated areturn of 3.4 percent so again , shifting your portfolio away from public funds to private funds as added an extraordinary amount and thenversus your peers, top 13 percent in that category . private equity 23 percent per year over five years topped 16 percent. real assets, 8.36 percent per year.

top 10 percent. so again, there's lots of data in the report.we do follow that a manager by manager level and i would say across your portfolio very few managers are underperforming benchmarks, the performance of your managers has been very strong and the positioning of the portfolio complements that. i'll stop there andbe happy to take any questions . >> anybody have any questions for alan west and mark. >> commissioner, i just want to raise one point because i want to tie it back into item number 10 on the agenda but the general question which you don't need to take the time to answer now is a liquidity premium, are wecapturing it or not ? go to page 28 upper right-hand corner. the total fund overweight for

the 10 years, the 10.41 number exceeds the policy by a great amountattributed mostly to staff recommendation for concentration and investment manager selection . very well done obviously but the number i want to point us to add to do with the 6030 10 benchmark number. the 8.17. obviously we beat that mark again, that was only 10 percent in that benchmark in illiquid investments with where we are running around 44 percent . which is a major contributor to the total policy index number shows that barrier has been paying off as well but i want to point out what is going to help in item 10 as we have these numbers in front of us now. item 10 points out if we're going to have to increase the cash payout, we may be forced to shift money more from the illiquid to the more liquid public securities which can affect the rates of return so

you hear just an example of how our policy is affected by the benefits that we are obligated to pay and increasing benefits which of course is the supplement so i want you to have an example in your report and eventually we will talk about the illiquidity premium, are we capturing that inour private equityportfolio and in our real portfolio and to a certain extent there's an assumption there should be some in the private credit portfolio but i don't know what that amount should be all good points . >> thank you alan. i look forward to item number 10 when it comes up . >> public comment. >> pressáthree to be added to the queueare there any colors on the line ? >> madam secretary, there is one calleron the line .

>> color, please state your name and you have two minutes to begin. >> this is rick sanchez, can you hear me west andmark . >> go ahead. >> trustee grisham's comments were righton the money . i look at the quality of these reports and i mean, i look at item 10, the liquidity management update .what an unbelievable report and all these quarterly reports, these report shows you how wonderful staff and how ... i don't know, they must start beginning their reports for next month's meeting tomorrow because

they're so in-depth. i strongly recommend if i take a supervisor to school day but you take the supervisor to the retirement system and you present them with some kind of simple, simplified way whether it's a powerpoint to just understand how complex the retirement system is so that they can appreciate the work that's done there and understand that what these people are doing for their own retirements but i can applaud staff on both sides ofthe aisle . you guys just produce really high quality reports and unless you take the opportunity to read through these, it's so hard to understand the complexity and my hat is off to you. >> you for your call. moderator, anyfurther calls ?

>> madam secretary, there are no further colors. >> hearing no callers, public comment is nowclosed . >> callthe next item please . >> next item is item number 10. discussion items, liquidity management update. >> commissioner driscoll hit on some of the highlights here. this update the board on liquidity and liquidity management at first is complicated for some of the reasons we just talked about. first it applies to private market strategies whichare illiquid , almost 30 percent of our assets, $15 billion are currently invested in illiquid strategies and we have another eczema half billion of them called capital to support those

existing investments and we don't control the timing of those capitals and on an annual basis as was noted previously we pay out about 500 million or 1.65 percent of trust assets to make the beneficiary payments every year. to date our liquidity position is quite strong . the fund exceeds both private markets and beneficiary payments but a newchallenge bloomed .somewhat ironically because of our strong results and much of it due to our investments inprivate markets . it's estimated we are approximately112 percent funded it you use our current discount rate . on the shows us in a report future employer contributions are expected to decrease by a much greater magnitude and much more rapidly than we anticipated even a year ago. to the extent that the payout rates from the trust were

expected to double within the next four years and triple over thenext 14 years , this of course has implications in asset allocations. the greater the demand for liquidity from the trust on the whole the less we can invest in illiquidprofits . the less we invest in illiquid markets orprivate markets , the less likely we can earn 7.4 percent so the bottom line is going to go through our liquidity positioning, our monitoring with kind of a long-range developing ways to monitor our liquidity . we've enhanced it by way of certain credibility, we're in good shape for what we know now but the new challenge is looming out there as potential contributions fall off during the next couple of years. it does have real implications to all of us in terms ofasset allocation . i wanted to state that now and as a topic that will be discussed at some length but i

would point it out now. withthat i will turn it over to anna to get into the details . >> good afternoon commissioners and beneficiaries and staff, consultants. it's interesting, thank you for the comment of the previous caller when you said we needed to start now. this ofcourse started three years ago when i joined . this is a long-termreview . we reviewed the liquidity position with more likeness as you will review theliquidity framework that i introduced years ago to the board . and working very closely with our consultants and associates, many thanks to them for being very patient with us through multiple iterations with my team and our private investment team aswell as our actuary ,

jeanette who ran multiple scenarios to see what liquidity positions can be. i'm going to start sharing things. let me know if you see the presentations . this is the liquiditymanagement framework as wereviewed it . on the left , the first is to make sure we understand cash flows or private equity, relapsed as private credit in certain areas. as kurt mentioned, we on the strategic asset allocation we allocate 43 percent. you will further hear kurt through the cio report where we're close to 45 percent allocation.

now to list liquid asset classes where we can control the cash flow that we can't estimate and work very closely as i mentioned with multiple vendors and providers and consultants . i think we will review it later on in the presentation but we then moved to the third on the right-hand side and worked very closely with byron and jeanette to look at the actual assumptions and what does it mean for our, what we call mass payments for the payout ratio? what percentage of the trust do we need to pay and pension obligations? not just today. we need to plan and plan long-term because a lot of depreciation that alan just showed came from private

equity, venture capital which will take us potentially 8 to 10 years to harness liquidity. those two inputs go into this second little fellow where we review the asset allocation and i can't thank our board enough for the support last year to accommodate some of the leverage so that we can be much more double in terms of asset allocation and not fully fund some of the allocation to be careful with our cash management and also supporting our work with our partners and custodians to provide very beneficial credit facilities. we also will reviewthe asset liquidity. what do we actually have ? in terms of available within a month, quarter or year and on

the manydifferent strategies . last year we introduced what we call lcr and and lcr, that the liquidity coverage ratios that look at the three year horizon. but again, multi-year exercise. the one key take away from this page is actually very strong and the one that commissioner driscoll alluded to. the key take away from this exercise of the liquidity management framework i just outlined is that without changes to our actuarial assumptions , specifically to the discount rate assumptions, that is one of thehighest . first, liquidity will diminish significantly when within 2 or

3 years and we will have to reduce the allocations, strategic allocation to private investment.that's the key take away is integrating the details of why and how and i'll walk you through it but that's why we rushed to put this in front of the board before you decide on the discount rate. so you could see not just jeanette's view which is very important and it works through a lot but the other side of the coin is theilliquidity . how much money is going to be counted for to save the pension obligations from the trust and what does it mean in terms of liquidity needs , not today but in five, 10 years and we have to take alook at it . that's the most important take away from thispage . the second take away is that again, i've been looking at

these plans and you will see we plan the liquidity with the previous cio. we planted it years ago and i'll show you how we've been planning for it so we have enough liquidity coming from private investments to pay the pension obligations. but again, if we don't change that combination, we will sacrifice that balance that we'vebeen planning for four years . for at least seven years. and the take away here is that it's very intricate combination because even though right now we, our private investment portfolio gets projected to be self-funded, and market duplication we might need to raise $1.1 billion. and that's something that all staff knows from me and here's

from us, from brady are wonderful investments analyst who does wonderful analysis on this. and myself, we sit down with public equity. public fixed income and absolute returns and we use their liquidity, what we call liquidity schedules. if wedo need to raise 1.1, what do we do? we presented to the board . so let's start with the details on the liquidity implication of our strong returns. let me first explain why we chose $3.7 billion versus 36.4. we run this analysis a couple of months ago and that's when janet estimated that our liability discounted with 7.4

percent were 34.7 billion so we said we are 100 percent funded, our nad will be 30.7 billion dollars. we thought we saw the writing on the wall when we read this analysis and we said that's going to be worth $34 billion. what is the implication of being overfunded by 11.12 percent. what does it mean for our cash position and the employer contributions specifically ? these are employer contributions which are 100 percent funded . the and 80 of the founders is exactly matching the liabilities when we estimated $30.7 billion. you could see that for example 2021, 26.9 percent employee

contributions. already this year we're projecting24.4 going into the low 20s in the next few years , then high teams and then the low teens and 2035. very nice, low-grade diminishing. the next slide you could see in blue is what if our nad is $34 billion? they are 112 percent funded. what is the employer contribution and the employer contribution goes to 5.7 in nine years and to zero in 14 years . that means more of the pension paymentsare now paid by the trust .

what does it meanfor liquidity implications ? that's what we lookat . i'll skip this and go back to the next page. this is what it means for the trust in terms of payments. if we were 100 percent funded our nad is $37 billion you look at 2030 and in the year 2030 ournet outflow , the pension obligation is estimated $1.2 billion . we know that that number will come to that as we look at the projection that we run with our partners in cambridge and again, that is the number that we were holding for for a long time. we were expecting to save$1.2 billion in 2030 . now, being at $34 billion without the actuarial

assumption we're expected to pay $1.9 billion. so it's a huge increase of money, sent out on the trust. what does it mean to employer contribution ? here we responded to commissioners. i think it's commissioner task forces for different scenarios including different discounts. here we would take $34 billion and 84 a different discount rate. the dark blue is employer contribution ratesusing 7.4 . the orange is heaven .2. the gray is seven percent discount rate and yellow 6.8. then the light blue going back to 7.4 discount rate but 100 percent funded at what our

liability currentlystands . so you can still see the decrease on employer contribution as time goes by. but even if we go to seven point two percent, it doesn't go to zero. it still maintains the low teens and even lower than 10 percent in 7.2 and low teens of seven percent proposal. this substantially reduced from today's 36.9 but not to zero. what does it mean to our offsets? to our contributions? you will see in terms of cumulativecontributions , they are paid out from the trust.

if we don't reduce the discount rate, we are expected to pay $11 billion more in the next 90 years. $11 billion that will not be growing and need to be spent out. that's in addition if we were 100 percent funded. it's just because we are now overfunded and it gives us or gives the actuaries and their calculations enough cushion to say we don't really need this contribution . wecan take it out of the fund . however, when we reduce it to 7.2 percent discount rate it will almost still add more than 100 percent but we will pay over 90 years $6 billion.

it helps us even more with liquidity and we will still pay more at seven percent but $4 billion more. and reduce it to 6.8, again more than 100 percentfunded . we pay $1.1 billion more 2019 but not where it starts to stray. let's look at this train of liquidity. it's an important page. here we are analyzing what is happening in orange when we are 100 percent funded so our nad equals our liabilities versus when we are 112 percent funded its $34 billion. you will see here that the next annual payout rate that is how much money goes out of the trust to pay pension obligations in addition to the

employee contribution. right now the onlyreasonable possibility is 1.4percent . in less than four years ,it will more than double . in less than 4 years this will more than double. in 4 years it will be already three percent and in 2035, in 14 years it will travel. it willmore than triple to 4.5 . spending 4.5 percent of assets out of the trust every year requires changes to the asset allocation. substantial changes to the asset allocation. we cannot enforce the illiquidity that wetake now , the illiquidity premium that we think we believe by our

investing dna face-off, we cannotafford to take itat 4.5 percent payout . we will have to change it . that's the slide that really the board approved current asset allocation which targets 43 percent private equity. in two or three years we will be over two percent. that's where we are. we are two percent from me access here, you see what our partners at blackrock call annual spending as percent of assets. right now we are close to two percent and planning. we are at two percent. but we are going quickly for 4 and a half percent. that's the asset, that's the

pension payout. on the y access, this is the estimate that our partners at blackrock investment institutes ran multiple simulations using our representative portfolio, private equity, real assets and credit and that's to say that we're comfortable with managing theseallocations to private markets . if we moved to the right in 4.5 percent allocation to private markets has to reduce tothe tune of 10 percent . so these are the asset allocation implications on liquidity and also the assumptions and we're happy to run additional analysis to make sure that the board understands the implications of current discount rates to liquidity.

next i like to review our previous one. what we've done previously and how much we are committing to these three private investment , private equity relapses in productcredit . last year especially in the beginning of the year we had to reduce the allocation because of the huge liquidity needs that we had to be ready. the market itself and now liquidity stands changed in the middle of the year so the last half ofthe year 2020 was better . last year in 2020 i'm in row three we committed 1.935 billion dollars across our private investments which is much less that on average over

the previous five years, 2015 to 2019 of 2.6 billion. we also in sending a lot of cash to our private investments we've been rebalancing our portfolio to invest more in private investments and over this past five years we've spent if you look at the bottom right number, 4.81 on average, $481 million to private over five years so it's a lot of money. a lot of money we were spending to seize the payout that we were trying to accommodate. you will see, let me see if i can share.

let me show you. cambridge's presentation, cambridge is available . do you have any questions? do you see this? okay. hopefully you see it. this is cambridge presentation that discusses the commitment for private investment. this is the overview of those details and we will also go through more details the investmentcommunity . next week . but here we are planning to commit next year $2.8 billion. so i'm on the top chart. the blue line says this is the annual commitment, $2.8 billion across the asset classes.

we project this stress test, here we go. we project 44 percent of total assets being invested in private investment.and gradually increasing the commitments over the years to 2030 will be almost $4 billion. now, we also project this year is the first year that we are hoping or planning and each case to be self-funded. we are projecting if you look at the details that private equity and relapses are now maturing and deploying for a long time seven years into building out the allocation. we now are in the more mature and getting out of the wild private credit and it's still

young and we feel it's best to commit quite a bit of cash. liquidity to fund the allocation. but next, self funding. and then the following year 2022 2023 will start seeing more distribution and base rates, if the markets are normal functioning.this is the 2030. by 2030 we're planning about 1.4, 1.3 billion distribution next distribution from our private investments. that's why what we were hoping for. we knew by then we were fully funded. that's howmuch we would need . to spend the in pension obligations. however, as mentioned and because of our strong performance last year and because of our high discount

rate, if we start reducing the employer contribution and getting more liquidity out of the fund, that will be one close to $2 billion, $1.9 billion that wewill need to send out, that's not enough . we have to start telling assets, rebalancing and we have to see allocation toprivate . so that's the best case and this stress case again, i can't thank cambridge enough for being patient with me because i'm detailed on this stress case to make sure that it is indeed stressful enough. in stress case scenario we need to stand up and be prepared to take around $1.1 billion. i'm on the bottom right and on the bottom chart looking at the net cash outflow of 2021 2023.

even if it's a three-year express scenario . indeed that's what we are solving for. again, i will go back to the the conclusion. and some other hopefully you see that's the details of kind of the highlights of our forecasting for payments of cash flows. $2.8 billion very robust commitment statements. they're improving our recommendation.self-funded programs in base best case, worst-case scenario we are standard prepared $1.1 billion cash outflows to stress the annual scenario. so quickly, just tomake sure we do have leverage .

these rates in terms of being flexible and liquidity and we do have credit facility which weemphasize . and the final bit here is the asset liquidity. we have a $34 billion on the management for each dollar. how much can we, is available today? we budget each of the dollars in this year and it'savailable within a month . within a quarter, within a year or will take us more than a year to get to review that dollar. and where very conservative and work with our partners at blackstone i'll turn it to asset management as well as grady to prepare the analysis for all the asset classes. so again, very good. the analysis is that we are in

better shape now. in either one, within one month more than billion dollars available and within one year is $10 billion. next we stress test. what we call one standard deviation is what an adc provides us as annual expected volatility. for example annual expected volatility for public equity is 18 percent. that means that we take all our assets in public equities and reduce it by six, by 18 percent. annual expected volatility for our treasury is four percent. we take intermediate treasury at the same time,color and correlation one reduce it by four percent. or liquid , the percent annual volatility, reduce it by eight.

absolute future, 11 1/2, reduce it by 11 and a half percent and then what's available. at this time in this analysis $5.3 billion stillavailable within one month . and within a year 13.8 billion. next we run two standard deviations so now we share or reduce the available cash flow from public equity by 36 percent . we reduce treasuries by eight percent. we reduce our absolute returns and these are the buckets here, the absolute return by 23 percent and still see what's available when. and again even in this strong stress test we have over 4 billion, 4.4 billion available within the law. so we do have positions liquidity. and finally, theanalysis , what we call funding liquidity this

last year where we look if you look at the formula on the top, but with financial assets is exactly what we justdescribed. and reviewed . then we look at that's over three years so what'savailable ? now we can roll it over three years, then the distributions from private assets or liquid assets over three years and the employer contributions and employee contributions that's the money coming in . we have the financial assets. have the distributions from our private managers coming in as we also have employee contributions. that's the what's coming in. what's coming out? these are benefit statements, our pension statements and capital calls to private equity. so look at the all scenarios.

the ratio is that we don't have to sell assets. that means we are adding our liquidity. we stress test this liquidity ratio lpr by stress testing this liquid financial assets but also stress testing the distributions and capital calls. and the results are on this page again, many thanks to our investment analysts freddie who ran this analysis. you will see that in each case we are well over one, there's 2.33 and then if you look at the right lower right-hand side, the colors talk about the stress to the financial ask so one standard deviation, two standard deviations of

volatility. and the row uses hemorrhages stress case assumptions when we don't get that much contribution, distribution from managers. we don't get the contributions from private but we still have to stand out money ascapital . and in all those scenarios, you will see that the ratio is about right. i will skip the analysis part, modified liquidity ratio but i will tell you that inthis case there will be , if the ratio is less than one it's will be selling risky assets like public equity and absolute returns but also the contributions are risky assets so they're not that concerned but we dolook at that scenario . and i would like to conclude with the analysis that commissioner driscoll asked us

and i work with jenna to revie . if you look at the table on the left-hand side, you see the first column is the discount space. and then the next column is what does it mean in terms of actual liability? at 7.4 hour liabilities, liabilities are $30.8 billion. at seven percent hour liabilities are $32.2 billion. 6.4hour liability is $34.5 billion . that's what we had at the time. we ran it even more so five percent discount rate. that actuarial liability is $44 billion our assets are still at

34.5 and there only 85 percent funded. we see this at five percent discount rate for only 85 percent funded. and in fact, five percent is what an adc expects to be returned over the long term for high-yield. and in fact, an adc's expectations for public equity is less than 6.2. less than 6.2. at 6.2 we will not be fully funded. at 6.2 percent which is expectations, long-term return for public equity , where not going to be fully funded. coming back to commissioner driscoll's question which was about now that we're fully

funded , what about immunization? for full immunizationmeans we have enough assets . we could buy immunity versus those assets and we don't have to invest. well, our duration, the duration of our liability is about 12 years . so if you look at the immunity available right now for the 12 years and as of june 2021, janet estimated that the immunity will provide 2.58 percent. at 2.58 percent we are nowhere close to being fully funded. so that's the answer. to commissioner driscoll's question on his immunization

about the assets that i like to see if the commissioners have any comments, questions and anitaand the whole team from cambridge is available to answer questions . >> anybody have a question for anna? thank you, that was a very excellent presentation. public comments please? >> a reminder to any callers to press star three if you need to be added to the queue. any callers on the line western mark. >> madam secretary, there are no callers on the line no calls public comment is closed. >> i would like tomake 2 comments . >> go ahead. >> thank you very much for you

presentation . allthe graphs , tables and charts. major points. and thank you for the immunization question which i'vebeen asked the last couple of months . it's a significant thing for others to go through but we are far away ready and it's something weneed to look down the road in terms of protecting the city's other interests as well .secondly, this issue of connecting the liability side of the operations to the assets and investment operations, ver well done . thank you. this is something that we trustees fiduciaries must understand both sides of the equation. not simply is wonderful to make money and the rates of return how is connected to the liabilities, the contribution rates and all the other assets is something we mustdo so why we don't take on the wrong risk at the wrong time . >>.

>> bank you with all the assets, that's a very scary part. we're on the line, thank you. >> next item please. >> item number 11, discussion item. annual review of the security funding for the fiscal year ending june 30,2021 . >> introduce and handed over to anna. they noted in the afternoon we reestablished the full ground in 2020. the features we discussed are quite important in of indemnification, we separately managed accounts and made conservative investment

guidelines that fit with money market funds. next fiscal year we earned $2.6 million in net revenue with the utilization rate of eligible assets about 28 percent which is higher than our expectations in 2020 and asked, noted we did successfully establish a $250 million cash relief credit facility which gives us more like ability to manage liquidity anna is going to get by mike mcinniswho joins us from his basement and mike, i know it's late but thank you for hanging out and i'll turn it over to you . >> thank you curtis and thank you mike again for yoursupport here. let me share again and walk you through the highlights . as greg mentionedin january 2020 , the retirement board approved staff recommendation to initiate securities programs. with our custodian being melon, we reviewed these features of the program, the jewel indemnification in terms of the

counterpartyreports , it we landed securities for non-cash, that's one indemnification than in our cash collateral account if the counterparty is the re- purchase agreement counterparty, they also indemnify. so that's the jewel indemnification. as we discussed with commissioner bridges we were specific not to commingle any cash that we receive as collateral and in a separately managed accounts and managed to do very specific guidelines which we major ourconservative . and in line with those that govern mutual money market funds. and we begin operating in february 25. 20/20 so we actually quickly add to mature and learn so even though it's a new program we've gone through quite a bit and as we covered last year we've got some people that we didn't even

notice because of how we're managing the over collateralization and be gone through a number of credits, downgrades that also we're not on our past collateral was account. this year was karma. we as initially resented by curt and myself last year we were planning to to $3 million revenues. we had 2.6 over 2.6 million this fiscal year. again, in line with what the estimated of six point 6 billion land of all securities and art utilization work actually both 28 percent. the rates are low as we discussed in many cases are negative but the spread is what we are looking for and we

gained 22 data point spread so that's why we refer to spread but it's actually the return in revenue that we get. and the change is six basis points that went for one cash lending and six basis points from reinvestments on our cash collateral accounts. that's on what's actually neutralized but if we look at the what was available to be like it's 26 basispoints returned . the non-revenue piece that is still very important part is development, is that we established a cash relief credit facility from our cash collateral which we do not take if we don't neutralize it. it's $250 million and we tested it in june from june 11-24.

we borrowed 50 million and we paid less than one percent as expected of the total cost of 63 basis points.we continued to look for additional ways to broaden the pool of available livable securities as increased utilization. we added each year to the pool of acceptable collateral and thank you for just approving additional recommendations to evolve our security funding program. briefly, so these three tables that i like to review . first table talks about quarterly earnings . you will see 2.6 million and you will seethat the last quarter , last second quarterof 2021 was the most profitable . that's due to european equitie

, european dividends being back and european equities lending facilities back in play which was notthe case last year . this is the second table which talks about utilization across certain asset classes. you will see the strongest utilization of treasuries at 60 percent. then equities at 22 percent. with total average utilization of 20 so out of 6.6 billion, 1.8 was less. the last table i'd like to see where we are getting the revenue and most of it is coming from our lending to us treasuries and equity. you see most of the revenues came from treasury.

so that fiscal year as i mentioned, past collateral drove most of the earnings. cash collateral reinvestments on that view to the demand for securities, the volatility came down and the markets were much called her as quoted, as was more manageable compared to 2020 and there was real but also gary supported that policy. we also saw as i mentioned the u.s. treasurybeing in high demand . that's due to expectations of rising rates. as we open, that's helped us in our treasury being in demand and we also saw a revival of

european dividends. dividends and as a result more dividend arbitrary strategies being engaged in where able to lead our securities. you will see again a breakdown of our returns or revenues. this is our quarterly utilization. you see an increase in the last quarter this is the spread earned every month and that's going back to commissioner bridges question. we earned on lending this year

but it's mostly theinvestments . and the review has a 30 of our securities lending portfolio but let me show you here. our cash collateral portfolio at $717million , and cross 3000 loans. that was against the security plan, up 2 billion.

so a very mature program. i'd also like to highlight how conservative bny mellon is the non-cash flows are over collateralized overnight percent over collateralization in addition to the markets . quick overview and we seen it last year that the reinvestments are down in last march. in fact when we started the program they were at 44, 45 percent and now it's 13. so a third of what we forecasted and we're making good revenues from the program. all also how conclude with a key initiative thisyear . where working closely with bny mellon and our attorneys. they are very helpful to see if we can increase the utilization of our fixed income portfolio

even further, if bny mellon sees a clearing which is the fixed income clearing corporation, that's when we will increase the utilization or the rate of lending to allow portfolios. we are also looking at different, expanding the range of equity indexes that weaccept as collateral . the board has approved the changes to accept investment-grade bonds as collateral for a purchase agreement as well as zero pounds ifcollateral to increase utilization of our european equity trades . we've been very impressed with the development and initiatives that we've seen with bny mellon who are enhancingtechnology . the digital team is one of the best. they have a digital team in palo alto that developed models

that predicted rates for equit . on the curve they understand what can be in demand which can receive higher borrowing rates. they can also see settlement traits for usequity . with thati'll conclude . mike is from bny mellon and he's available for any questions. i also will be happy to answer anyquestions . >> any questions or comments? >> i have a quick question if you'reopen to the question . i know you added eps to the pool of collateral and this is just a regulatory question for me but i'm going back to my record. did the sec approved equity as

collateral or isthis just from the european ? >> it's still just the european side. we were hoping for everyone so stay tuned but that's certainly on the military. >> it's been on there for a decade.i've been there for 10 years and it hasn't been approved so when i saw this i thought maybe just something. >> it's just positioning well for that and also being able to takeadvantage of theability to find us broker-dealers . >> they still have a restriction in four nonequity . i was wondering why you would do that so how many approved europeans did you have on the docket for the program? >> off the top of my head i know we lend to about 75 different ones. i don't know exactly which ones traffic in which collateral

types that's the upper amendment you would be looking at. >> that was my regulatory questionbecause i've been attending themeetings and i like , it's not approved yet . that's important. so if you could post on that because i know it's been onthe docket for a while . >> thatwill be a big deal and i'll be happy to share that . >> house shifts to that one. >> we are ready for thatand we will simply update the board as soon as we can . >> i think it's important for people to know because a lot of collateral on programs, but their limited in what they can take . there's all these securities buteuropean brokers have more latitudein what they can do . i think that's important to make the distinction . >> thank you. >> any more questions or

comments? otherwise we can ask for public comment and moved to the chief investment officer reports. >> reminder to any colors, please press bar three to be added to the queue. moderator, arethere any quality colors on the line ? >> madam secretary, there are no colorson the line . >> .no calls, disclose. item number 12, chief investment officer reports. >> president: did we lose her? >> i see a yellow triangle up in his name. can anybody from staff take his report?

>> i can take it. >> go ahead. >> the actual performance was covered by:, thank you very much for that. so i will not cover the performance. we will, i believe we need to read the disclosures. >> the disclosures,yes . subsection 3. >> i came to the office specifically on the bandwidth. i'll be very quick here. i'll put my quick update on performance, board approved investments in the committee meeting. in august we hadmade our returnsfor the plan ,

approximately 2.2 percent . all classes were positive led by real assets and public equity through 2.7 percent respectively . private equity and private outflow were around two percent, fixedincome and absolute return for up . calendar year we are up over 17 percent, 17.6 percent. led again by private equity and we can expect results on a real assets, public equity and private credit which is each posted to double-digit returns so so far this calendar year. for reference a 6040 portfolio and a 6030 10 portfolio have returned just 7.7 percent from 9.83 percent respectively. at the end of august our estimated assets are $36 billion. beginning next month the third month into the new fiscal year i'll begins report onfiscal

year results but they are up around 2.7 percentfor the fiscal year . in terms of board approved investments , feel free to announce our meeting july 13 2021 retirement board approved in closed session and investments of 3 million in harry's credit strategies fund. that investment closed on august 11 and the investment is classified as a global senior debt investments within our program. next at our meeting on august 11 retirement board approved in closed session and investments of up to 40 million to classic investors. the first commitment of 8.5 million closed on august 13. investment fits within our real asset portfolio and occurs and investments with the june partners and finally at august 11 meeting , the board approved in closed session an additiona commitment of 200 million to san francisco asia investors . they had committed $600 million to the report in 2014, 15 and

17 and 18. the additional investment of 200 million closed on august 2 , this investment is defined as a growth equity within the first private equity program. next in august we began to recruit for a senior portfolio manager for the buyout portion of our privateequity program. i concluded a link to that particular post but i think in fact we may have closed that recruitment approval . we will have to share in the month ahead and i am hopeful that it certainly in the next several weeks that we will begin active recruitment for some of the positions that were included in our new budget so the board will talk about their in theweeks to come. finally we have to investment committee meetings scheduled next week . we will have onseptember 15 we will do asset class updates for

private equity . realassets and private credit . those were updates thatwere postponed , we were going to do them in july and understandably those were moved. most of the portfolio data will be on the december 31, 2020 but we will get updates through march 31 as well. then finally, we have established a second investment committee meeting september 17 at which we will talk about the investment implications of regulatory changes that we are observing in china so we're developing a program from that . i'll stop thereand turn it over for any questions .>> any questions from the board or any comments? can we get public comment? >> do we have any colors on the line?>> madam secretary, there is one caller on the lin . >> caller, please state your name and speak when called upon

c8 this is fred sanchez from protect our benefits. i don't need to comment on every single board.today is a verygood day for everybody who reported. excellent report which shows you the strength of staff there . i can't say enough but today was a very helpful commentsfrom the trustees as well . i mean, the trustees show their knowledge that they're just not rubberstamp or, that they have a full-blown understanding aboutwhat's going on . very impressive but in my life , my partner, if i don't set down by 6:00 i'm in big trouble so i'm confident that the rest of that meeting will go as well as the first part of the meeting and thank you all for your tremendous effort and everything you guys do to make the season what it is today. >> thank you for your call

moderator, any further calls . >> madam secretary, there are no further calls. >> public comment. >> item number 13. >> item 13, discussion item, san francisco deferred compensation plan monthly report. >> thank you very much, good afternoon or good evening now. and you hear me okay. >> we can hear you fine. >> okay. i'm aware of the hour so i will try and make this as brief as possible. it is a monthly report and they generally are shorter but before you is the monthly activity report. if thereare no questions on that specific reports i'd like to share a few other updates

with the board . >> go-ahead. >> next month as you know in october it's national retirement security month. used to the national retirement security weeks but in 2020 congress amended it to a whole month to reinforce the need for americans to have financial security in retirement. the sfs he is proud to announce a day and play campaign and all active participants willreceive a direct mail outlining the plan in place details in late september . they simply need to complete 2 tasks such as attending a webinar, increasingtheir savings, being a counselor and they will be entered to win a fun weekly prize . we have great prizes this year such as a barbecue vest or a kenneth cole suitcase. the first 100 to play will receive an insulated stainless

steel travel mug. all cps at employees that are eligible for the plan and participate soplease spread the word and tell your colleagues . we look forward to their participation. we're also working with other departments to feature national retirement security month in their communications. edition eight email campaign will begin october 4 and will feature a different topic each week such as using tools to find out how much more to say now in order to lessen the income that in the future. all campaign art was still in progress boardmaterials were collected but i will include them in the october report materials . [please stand by]

. >> are there any callers? >> there are no caller on the line. >> public comment is now closed. next item. >> 16 p.discussion item. personnel committee report august 20, 2021. >> i can cover this is commissioner stansbury is no longer online. the committee met on

august 20th. they approved the minutes of the july 22, 202 meeting and held a closed session to meet with me to review goal setting between now and the end of the year. with that i will be happy to answer any questions. >> thank you very much. anybody have a question? if not, public comment. >> thank you, moderator, any caller on the line? >> madam secretary, no caller on the line. >> thank you. public comment is closed. next item. item 19. discussion item. executive director's report. >> commissioner, i know the time is late. i had two items to report on. last month i indicated our

government consultant would circulate to board members self-evaluation survey. she is proposing a new format. we have decided to put this through governance committee before the board. we are hopeful they can hold the meeting to review this material and so i want you to keep your eyes open. also, on behalf of the government consultant, ashley wants to thank board members for responses to genet braselton, performance evaluation survey. she will prepare a report on the aggregate results of that survey. last thing to brief the board on was an update on our office return to office plans. previously i announced the city

was urging us to actually return to in person work this week. the week of september 6th. with the delta variant and the indicators in the city with this new variant as well as with the approval of the pfizer vaccine for nonemergency use, the city has urged the departments who have not yet returned to in-person services or having staff come in regularly to the office, they have asked us to coordinate with the november 1st date, which is the date by which all city employees must be vaccinated. we have been working over the last few weeks to modify our

return to in-office work to coincide with the november 1st opening. originally, the city announced that the 100% tele commute policy was going to be ending in september, the first, well, the week of labor day, this week. they delayed to november 1st. what we intend to do is we have notified staff that they have a few more months to work remotely and that we will be calling everyone in. i think i shared the city's requirement is that all staff must conduct in-office work at least two days per week. we had prepared staff to start this week. now it is pushed to november 1st. we are also working on what our in-person services are going to look like.

the doctor director mentioned the counseling services for in person. we are doing some building and space modifications on the fifth floor to accommodate safety concerns of staff as well as members. we anticipate that we will be opening on a limited basis starting off at least on limited basis to in-person services the first week in november. the other news i will share is that there was some concern in that the state legislation, i believe, that allowed for boards and commissions to participate in board meetings remotely was set to and is set to expire the end of september. there was some confusion related to whether commissions and boards such as retirement system would have to return to in

person board meetings in october. we received notice from the city that the mayor's emergency order is what allows boards like the retirement board members to participate in a board member remotely and that the mayor's office has no plans to redidn't that order before november 1st. for the time being the october board meeting at least will be conducted remotely and will have more information by next meeting as to what longer term that is going to look like because many of you are aware that there are a lot of space modifications we need to make to our boardroom in order to safely bring all board members back into the room, and we want to ensure the safety of the board members. obviously, the impetus is to

allow the public to be in the same room as the decision-makers. the models we are looking at would be just board members returning, staff continuing to present remotely, having members of the public to be in the room to provide live public comment to the board but we hope that is going to be -- we will have a few more months to plan that out. in the meantime we have placed orders for air purifiers that we believe are sufficient to provide protection in both the public areas and the boardroom areas. we will provide more information. as of right now we know that there will not be in-person board meetings before november of this year. with that i will be happy to answer any questions. >> is it open for questions?

>> i think so. i asked for questions. >> the question is and you are right about constraints in the building. not only just ventilation but bandwidth there are banned width issues in that. >> we are working on bandwidth issues. i used to come in the meetings with you. >> i know. >> with also president dristol. we are asking the city because they provide wi-fi we are asking to enhance cape abilities and looking at health requirements for the room. we cannot open window in the boardroom and don't believe there is adequate air circulation provided by the building and we are leasing the space that we have not that much

control over air circulation. the health order provides if we have sufficient air purification systems in the room that would meet the health requirements of the department of public health for calling back. again, we want to look at it very carefully and if -- staff can participate remotely. no problem with that. if, in fact, the emergency order is lifted, it would prohibit board members from participating remotely. we are focusing on what it would look like spreading everyone out in the room and again having no control of the number of public but making sure that the board was protected from the public and the public was protected from themselves and the board and make sure we can maintain safety. there is a lot of logistics to be worked out. we are also looking at alternate locations. that is not necessarily that

convenient. certainly, i think the precursor what anything will look like is the board of supervisors. they currently have the board members in the chambers, which is a much larger space than we have. there are no live comments. when we see what they do to accommodate live public comment, i imagine that will happen before we would need to do the same thing for our board meetings. >> that is the model i have seen. that is why i asked the question. >> i think they have better band bandwidth. we are trying to make sure that we have seven floors and we have, you know, three floors, excuse me. we have two, two zones wi-fi

zones on each floor, not sufficient to accommodate live streaming of the meetings for more than a handful of people in the office at the same time. sort of scheduling people. their usage for works. it could be that on board meeting days we don't have regular staff in the building using the wi-fi to do their work so a lot of those logistics we have to work through among other things. safety and bandwidth are at the top of the list. >> question about providing service to members. june is the month where the analyst and retirement counselors are working nonstop. they are busy all year long. this covid issue and the city

policy regarding qsr, i assume you are getting many phone calls for appointments. i get the occasional phone call and tell them to call retirement system. is the retirement system and analyst on staff prepared, gearing up for more work in the next several weeks in case people are informed they are going to be separated? >> thank you for giving us is heads up. we had been aware of a septembet some first responder employees had been given as far as needing to be vaccinated by those dates. i had my meeting yesterday afternoon with karen. we talk about it every week. she hasn't notice an appreciable uptick in the number of requests for counseling. what we have actually done is

brought back two former retirement counselors who have retired. michael and diane. they have agreed to come back to help us as a employee. we are able to ramp-up volume of services if we would need to because we have additional staff in addition to the regular counseling staff. we have tried to be a prepared for that as possible. karen may be able to speak more on it. we discuss it every week and have been watching for an appreciable uptick. this would be unusual in september. most of it is in july and june. i don't believe we have seen any significant increase in the request for services. >> thanks forgetting ready for that. i think an issue is more questions are being asked than

answered. not by the staff. people are trying to figure out what the new rule changes are. i am grad you are ready for a possible flood. thank you. >> one question. is there a possibility of the remote at all? that was one of the things this cio asked for, bill asked for in the last review. curious if we were to attract good talent is that a possibility? >> i believe for staff there is not a legal requirement because they don't vote. really, a lot of it is in relation to public access to the decision-makers. staff is notes considered a decision-maker as far as this retirement board is concerned because they don't vote. that is why we are undertaking a

model where the prohibition was always in place that board members and commission members could not call in or attend the meeting or vote in the meeting remotely. that was the long standing prohibition which was lifted during the pandemic just for the stay-at-home order. as long as that emergency order is in place, we can continue the current be model. going forward until we have sufficient space where staff feels comfortable and safe coming back into the office and attending the board room. you haven't been on the board but we have had meetings where we have had and i don't know if you have seen the boardroom. we have a very small capacity board room. it has been packed with people want goes to provide public

comment to overflow to the reception area. we hope we don't have another topic to bring that much interest, but we want to be able to provide for the safety, mostly of the board because i believe once the order is lifted that board members will have to be in attendance at a board meeting in order to vote. that is the way it was before the pandemic. staff and having investment staff present to the board sitting live in the meeting is not technologically an issue. hopefully we will be able to work through that. i will say that for the existing staff, investment staff as well as staff across departments we have had no person huish shoed any -- no one with objection to working two days a week.

that is a city rule that prohibits someone from working 100% remotely. there are ways for departments to request exemptions to that, but so far we have not had any of our investment staff or our existing administrative staff request that type of exception. i don't know how the city is holding firm to rules to bring people back to the office so i am hoping if, in fact, this turns out to be longer term there will be reasonable accommodations for, like you said, some folks who, you know, would be willing to work here as long as they could work almost exclusively remotely. as far as staff having to come to board meetings, that is not a legal requirement. i will say that the city is also in the pandemic a lot of folks

had relocated because they were working remotely, 100%. they relocated out of state. the city has taken a pretty strong stance on for various tax reporting issues all city employees have to have a california residential address or they are going to be terminated. a lot of folks are having to relocate back to california or at least establish residence in california. the city is coming across in different be ways to try to bring everyone back, but i am hopeful that if we had, like you said, an investment staff member who it was not necessary for them to be in the office and could work almost exclusively remotely that there would be some sort of accommodation the department could request.

>> that is helpful. >> more to be seen as this unfolds. like i said, everyone has gotten used to and i will say i appreciate the resilient city of all of our staff, investment as well as administrative staff since the pandemic and since we were sent home in march last year. the resilient see to go uninterrupted to make sure we could continue providing member services as well as all investment work. it will be interesting to see. there is a travel ban in place, meaning that our staff, our investment staff and board members used to routinely go to a lot of conferences and travel and attend advisory committee meetings. it is going to be interesting to be what the industry structure is going to look like. i believe our staff continues to

attend advisory committee meetings but they are all remotely. i am not sure there is much appetite for them to again be in person meetings. we are watching that trend very carefully also. as you know, most of the opportunities that the board members have for attending conferences they continue to be virtual. we are starting to see hybrid models offered and it is going to be interesting to see what the demand is. certainly, from a budget perspective travel and accommodations are a large part of our investment budget and if, in fact, all we have to do is find bandwidth that would be much cheaper in the long run.

>> thank you. anything else you have or any more questions of jay? i think we reached the magic number. i only see item 20 left. >> that's correct. >> public comment? >> thank you. reminder to callers to press star 3 to be added to the queue. do we have any caller on the line? >> madam secretary, there are no callers on the line. >> thank you. public comment is now closed. next item. 20. discussion item. retirement board member good of the order. >> anything from any commissioners? >> i would like to thank all of the staff that hung in there today and thank you for your patience and consultants thank you very much.

i appreciate anything. if there is no further business at this time, we will be adjourned. >> public comment before adjournment. >> do we have any callers? >> madam equity, there are no caller on the line. >> thank you. hearing no calls, public comment is closed. >> thank you very much. we will consider ourselves adjourned. thank you. good night everyone. >> thank you all for your time.

>> hi. my name is carmen chiu, san francisco's elected assessor.

when i meet with seniors in the community, they're thinking about the future. some want to down size or move to a new neighborhood that's closer to family, but they also worry that making such a change will increase their property taxes. that's why i want to share with you a property tax saving program called proposition 60. so how does this work? prop 60 was passed in 1986 to allow seniors who are 55 years and older to keep their prop 13 value, even when they move into a new home. under prop 13 law, property growth is limited to 2% growth a year. but when ownership changes the law requires that we reassess the value to new market value. compared to your existing home, which was benefited from the -- which has benefited from the prop 13 growth limit on taxable value, the new limit on the

replacement home would likely be higher. that's where prop 60 comes in. prop 60 recognizes that seniors on fixed income may not be able to afford higher taxes so it allows them to carryover their existing prop 13 value to their new home which means seniors can continue to pay their prop 13 tax values as if they had never moved. remember, the prop 60 is a one time tax benefit, and the property value must be equal to or below around your replacement home. if you plan to purchase your new home before selling your existing home, please make sure that your new home is at the same price or cheaper than your existing home. this means that if your existing home is worth $1 million in market value, your new home must be $1 million or below. if you're looking to purchase

and sell within a year, were you nur home must not be at a value that is worth more than 105% of your exist egging home. which means if you sell your old home for $1 million, and you buy a home within one year, your new home should not be worth more than $1.15 million. if you sell your existing home at $1 million and buy a replacement between year one and two, it should be no more than $1.1 million. know that your ability to participate in this program expires after two years. you will not be able to receive prop 60 tax benefits if you cannot make the purchase within two years. so benefit from this tax savings program, you have to apply. just download the prop 60 form

from our website and submit it to our office. for more, visit our website, sfassessor.org, francisco. >> my name is fwlend hope i would say on at large-scale what all passionate about is peace in the world. >> it never outdoor 0 me that note everyone will think that is a good i know to be a paefrt. >> one man said i'll upsetting the order of universe i want to do since a good idea not the

order of universe but his offered of the universe but the ministry sgan in the room chairing sha harry and grew to be 5 we wanted to preach and teach and act god's love 40 years later i retired having been in the tenderloin most of that 7, 8, 9 some have god drew us into the someplace we became the network ministries for homeless women escaping prostitution if the months period before i performed memorial services store produced women that were murdered on the streets of san francisco so i went back to the board and said we say to do something the

number one be a safe place for them to live while he worked on changing 4 months later we were given the building in january of 1998 we opened it as a safe house for women escaping prostitution i've seen those counselors women find their strength and their beauty and their wisdom and come to be able to affirmative as the daughters of god and they accepted me and made me, be a part of the their lives. >> special things to the women that offered me a chance safe house will forever be a part of the who i've become and you made that possible life didn't get any better than that. >> who've would know this look of this girl grown up in atlanta

will be working with produced women in san francisco part of the system that has abused and expedited and obtain identified and degraded women for century around the world and still do at the embody the spirits of women that just know they deserve respect and intend to get it. >> i don't want to just so women younger women become a part of the the current system we need to change the system we don't need to go up the ladder we need to change the corporations we need more women like that and they're out there. >> we get have to get to help

them. >>

good morning everyone. who loves transit in san francisco? oh, my gosh, everybody loves transit. who had a great ride? who had a problematic ride? that's actually a pretty good. that's okay. that's good. hi, ktvu. so i am rafael mandalmen. i got to take the j church in with a group of activists who are very committed to getting the j back in