>> thank you. welcome everybody, good morning and welcome to the retirement board meeting in hybrid format meet nothing person and live on sfgov.org. before we begin like to reminds individuals present and attending the meeting in person today all health and safety protocols and building rules must be adhered to. requirements may result your

removal from this room. we appreciate your cooperation with the rules and the interests of everyone's health and safety. hand sanitize are stargsz available at each elevator and upon ask. call the roll. >> thank you. commissioner bridges. >> present. >> commissioner driscoll. >> present. >> commissioner gandhi. >> present. >> commissioner holdfond. >> we have i quorum. >> thank you. >> you want to call the next item. >> item 2 communications. >> and please, can you leave the text. >> certainly >> welcome the public's

participation during public comment periods. would be an opportunity for general opinion comment at the meeting after closed session. there will be an opportunity to comment on each discussion or action item on the upon agenda. each comment is limited to 2 minutes. public comment will be taken in person and remote by video or call in. the board will take comment first from those in person then from people remote. >> comments or opportunity to speak during the public comment period are available calling 415-655-0001 access code: 2498 806 0172 ##. when connected you will hear the discussions but muted and in listening mode only. when your item come up, press star 3 to be added to the line.

>> dpraul a quiet location. speak clearly and slowly and turn down tv or radio. note that city policies with federal, state and local law present discrimination conduct against employees and others during public meetings and will not be tolerated. public comment is permitted on matters within the jurisdiction of the meeting boulevard we thank you for joining us. >> mr. holdfond. >> no public comment after this item. go to the next item >> 3, action item. review and approval of the december 22 board resolution to continue to meet in person with some members possibly remote near 30 days pursuant to california government code 549538e.

>> okay. du read that script. >> she did. >> you did it. >> okay. >> we will take in person public comment first and then open the phones for caller. call the public comment. >> should we make the motion before. >> yea. >> i move we adopt the resolution. >> second. >> thank you. motion made by commissioner bridges and seconded by commissioner thomas. >> we will have no in person public at this time. reminder and callers press star 3 to be added to the queue.

for those on hold wait until the system indicates you have been unmuted. there are you no callers. >> public comment is closed. >> mr. holdfond >> moved and seconded. madam secretary. dot roll call. >> commissioner bridges. >> aye. >> commissioner driscoll. >> aye. >> commissioner gandhi. >> aye. >> commissioner holdfond. >> aye. >> commissioner thomas. >> aye >> thank you. motion passed. >> great. we are going to proceed to closed session. let me make a look how we will do it. we are taking a break at 1 o'clock. we will be out of closed session

probably before that. but 1 o'clock for half an hour break. okay. >> reminds everybody to go commissioner closed session investments. and we'll go there. commissioner bridges >> present >> commissioner driscoll. >> present >> commissioner gandhi. >> here. >> commissioner heldfond. >> present.

>> commissioner thomas. >> motion in order to vote whether we disclose what was in closed session. to not disclose. second. >> moves and second the. do you want to call the roll. public comment. first. >> thank you. no in person public comment at this time. callers press star 3 to be added to the queue. do we have callers? public comment is closed. move to motion to not disclose the meeting closed session.

commissioner bridges. >> aye. >> commissioner driscoll. >> aye. >> commissioner gandhi. >> aye. >> commissioner heldfond. >> aye. >> commissioner thomas. >> aye. >> we have 5 aye's. motion passes. >> thank you. >> next item. item 5 general public comment. we have no in person public comment. callers, press star 3 to be added to the queue. do we have callers on the line? >> there are no callers on the line >> thank you. no calls, public upon comment is closed. okay. so -- we are not going to break

at 1 o'clock and so we'll power through this and take leave and -- we can have our lunch in the board room as conducting business if that the is not exceptional to anybody? move on to item 6 >> action gentlemen approval of the minutes november 23 meeting. if you have no changes we ask you provide a motion. move to approve minutes. >> move we adopt the minutes. >> second. >> thank you.

>> public comment? we have no in person. are there callers? >> there are no callers on the line. moved and seconded. take a vote. commissioner bridges. aye. >> commissioner driscoll. >> aye. >> commissionergandy. >> aye. >> commissioner heldfond. >> aye. commissioner thomas. >> thank you. we have 5 aye's motion passes. item 7. >> number 7 is an action item. consent calendar.

it has been moved and seconded. we have no in person public comment at this time. if you have not, press star 3 to be added to the queue. there are no callers. >> public comment is closed. give a roll call. >> commissioner bridges. >> aye. >> commissioner driscoll. >> air. >> commissioner gandhi. >> aye. >> commissioner heldfond. >> aye. commissioner thomas.

>> aye >> we have 5 aye's. motion passes. >> thank you. item 8. >> skugz item report on investment performance of the retirement fund for quarter ending september 30 of 22. >> >> yea. i will not say much. good afternoon. we will have alan provide us planned performance. it was down 2.9% for the quarter. losses were lead by private and public equity both beat their bench marks and gains were seen in real assets our most positive performer for the year. alan, will control your slides

>> third quarter report buffer kirt gave you the punch line with respect to the quarterly result. this report is going to add context providing results and rankings versus peers as well as decomposing results by selection and allocation at the asset class level. for context at the end of q2 we pointed out at this point we had 2 quarters in the left 30 years stocks and bonsd were down in the same quarter. we said at that time if interest rates continued to rise as we expected. we were likely to see another quarter of stock and bond returns that proved to be the case. stocks down 4.9% in bloomberg bond index was down 4.75%. a 60/40 in the quarter was down

4.7% and for the year to date over 20%. that is the worse start to a year since 1937. this has been an extraordinarily difficult period and in that difficult period due to the performance of selection and managers in the portfolio as well as a comfortabletive allocation and well diverseified one you were down 2.9 in the quarter. and 12% for calendar year to date almost half of what the typical 60/40 was down. stocks have roll ed as expectations inflation was declining increased and report shows later stock were up in october and november. bonsd up modestly bringing your

physical year to date results to a positive.09%. yesterday the fed raised rates we had another decline in markets. which has been the pattern. if you look at the monthly returns of the s & p this year, you will see positive 9 and positive 8 and negative 9 and negative 8. volatility as the marketses struggles around the quest whether inflation is being contained or not. if you go to page 2, kirt. the economic environment. i'm not going to spend a lot of time on this, you will see that this environment is characterized by 3 factors weak but positive gdp growth and earnings and jobs. job creation continued which is in the typical of a recessionary

environment. off setting that, inflation continues to rage. there has been indication that it is slowing and every time that happens the markets rally. our belief is long-term inflation is under control and likely to continue to see high inflation and that environment the third and most important factor the fed conditions to try to tame inflation by raising interest rates the fed did yesterday by 50 basis points. 10 year treasures at 3 and a half. anythingingly below the short term. we have a yield hump. they start the year 1 and a half %. 1%, we seen an extraordinary rise in enter rate when is rates rise if causes those to experience declining value and

losses and challenges eckwit witty markets you will see on the next page if you look at the market environment for the quarter. tla first column is all red. everything went down. no place to hide. positives were a slight positive with respect to leveraged loans what is the factor against we bench mark private credit. where you have an allocation. and real estate. because it is lagged largely continued to do limp everything was down. if you look at year more of the same although private equity in that environment did okay. again, private equity values are lagged by a quarter. we have not seen the extent of that. but an environment that was difficult and again to highlight that if you move forward to page 5. kirt.

this is the return on a 60/40 for the first 9 months of a year. and you can see 2022 is right there with 1937 and 2008. no other period in history as bad as this one this is an extraordinarily difficult environment. on page 15... the top line here is your time waited. net of fee returns for periods ending 9-30. following by ranking in the pier group of 57 public funds large are than a billion dollars in asset value. most important low, note that all of your returns greater than a year are well in excess of 7.2%. i'm not going to take tout next page but it goes 10, 15, upon 20

and 30 years all returns are boost assumed rate that is unusual in this period most public funds lost so much that many public commends are seeing 5, 7 and 10 year returns below 7%. upon line 2 is return of funds of will all allocations maintained at target and all asset class returns matched policy. out performing that means you add value through manager selection or positioning. and you and see for every period here your returns exceed policy returns and policy returns were competitive. positioning versus your policy is strong and you added value through manager selection or

portfolio positioning. over 5 greers you looked that is over 3% per annum if we looked at that in dollar term its is 4 and a half billion dollars. the actions that you all have accomplished by manager selection and portfolio positioning add 4 and a half billion dollars what would have been earned by policy. >> finally. the staff and board adopted a diverseified policy target in 2017, intentionally to reduce the volatility and protect against the down side. if you look at the tables to the lower right. sdoornd deviation is used to look at volatility. you see that has been in the bottom 6% and bottom 3% in piers in the 3 and 5 year period.

we set out to have a diverseified portfolio. we pleasured that. lastly. typically the measure we use to look at adjusted return to normalize across plans that fake different levels of risk is the sharp ratio. klthed the return minus the risk free rate close to zero and dividing by standard deviation you have been in the top 2-3% for both periods. the ratio the same measure it looks at down side and again, a very competitive number with respect to the ratio. nathingtive return in the year equals 3 opinion 1 billion dollars in market value. together with the negative cash flow we know we have is a mature

fund on 9-30 it is 32.56 billion versus 36.tw billion a year ago. longer results on the next page again highlight how success have gone the fund has been every single return number at the top is in the top 1% of your pier group. now to compliance. that second colthat you will says current is the percentage allocation to each asset class. the column will is the board approved target. you see all of your alpha~casions are close to target and within range except private equity. which is 31.6% boost upper limit note again evaluations of private equity are lagd and

tonya mentioned since private equity tends to trail public equity you see a reduction in private equity evaluations. as. nooun june 30 this was 32.6. cash does we fleck lever taj is negative. and you can note that priority and public equity if you totalled the 2 come to 60 percent, which is on target. again we are over the upper limit in private equity teis due to a good thing we have been success and will that will moderate as we go forward. >> any questions on allocation.

look at the one year period the net flow was negative 121 million dollars that is pay outs versus contributions. look at the 3 year period that number averaged 500 million. because we were so successful, because we have a funded ratio above one. you are starting it see as we look forward a reduction. in contributions made by the city and members. and that means since the distributions associated with pensions does not go down that we will see more negative going forward. again, as we go in the asset allocation planning. the minus 724 million is 2.3%,

that is well within the range of other funds. so. not an issue now but become an issue as we go forward. >> pages 21-25 look at risk return versus piers. in the interest of time go to the 5 year chart on page 21. and again, on this chart in that upper left, each of those points is the return plotted on the vertical be acaxis and volatility. the actual is that dark blue circle. has the highest return of any fund in the university over the 5 years which we noted earlier. you can see very few funds are less volatile. so. mission pleasured in terms of moving the fund to have less

volatility. and yet. in periods that remember somewhat challenging we continued to perform well. and and -- in a period of 5 years it has been quite well. the light blue is the policy. and you can see policy has medium risk. slight low higher return. that means the actual being above and to the left the actions of selection and positioning of the portfolio have not only enhance said the performance of the portfolio and reduced the risk as well. >> next. chart we will look at how we accomplished that out performance versus policy. there were a number of pages but go to page 31. 5 year. ing the light blue line, we had

in that period 8.4% return. the policy returned to 5.ly and therefore we are trying to explain an out performance of 3.1%. the columns now are going to break that 3.1% down into positioning of the portfolio. meaning being over weight good things and under bad things. versus selection meaning choosing managers that did better than the bench mark. as you would. expect and hope the allocation was small. which means of the 3 opinion 1% out perform versus policy, 2.9% was due to selecting managers that did better than bench mark. these numbers are very small you will seat only asset class that

is under performed over this period is absolute return as you know the bench mark well is a 2 bills plus 5 that is an aggressive bench mark. you have been generating 2 bills plus 3. under performance from absolute return but positive performance from everything else. the zero in public equity seworth noting experts chosen to be active. in public equity. and if you remember 6 months ago, that choice was manifested by an over weight to health care. biotech, technology and china. all of which did extraordinarily well but coming in this the more recent period of rising rates have not done as well. >> health care rallied a bit in the quarter. but back down to being medium

with respect to over all performance of public equity despite the fact we had head windses recently. >> the remainder of the report breaks down in subasset classes and physical versus notional. i'd summarize this by saying the conservative position result in the less down side than 60/40 and most pierce preserved the value our asset. and as markets reset, the interesting thing about rising rates is while it hurts current returns it starts to built a base for better, longer term returns. at some point when public fixed income yields 4 and 5% it is interesting again. and in fact equity and he other risk asset class returns should add.

we with stood the fund well with stood the difficult environment well. and our allocations to private markets are high and private equity and he credit and real assets have significant low out performed the bench mark perform. over the 5 years public equity active matched bench mark and pierce despite the near term head winds and that's the key challenge. we did not sell anything. these are evaluations based on holdings. liquidity position allowed us not to cell things. going forward wore well positioned. question is, how much additional risk we want to take in the areas which have done well. the key challenge is this just a

resetting of values against a long-term return or have they become impaired. leverage had a negative contribution. and the absolute return portfolio under performed. so. i stand for questions i was not going to go in details subasset classes. but happy to take questions. alan. >> before that i want to for the sake of completeness, note on page 17 of the report, it shows that in addition to private equity beyond the long-term am range to sell up public markets the affect we're above our range, as well now. with the rally in public markets and i will talk about in a moment that allocation overnight policy range has diminished a

bit. >> thank you. that is really important. and being over policy is not a sin, it it is understand we are upon beyond the limit we thought was important independenting the reasons and the fact it is self correcting is important. thank you for sharing your comments for the report. >> complete the? that is the extent. >> comments and certainly available to answer questions >> commissioners. any questions. i'm ready to start. i have categories of questions.

our decision to be 53% liquid. when i see the numbers comparse to the 60/40 or 60/30/10 our decision to be liquid is supposed to generate better returns. when you compare us to billion dollar funds the question is how liquid. how much private equity dot billion dollars funds have say 5 billion plus. why if you look at funds below a billion thap upon don't have comp tent staff they are indexd and don't have a lot in private equity. when you get above a billion it gets substantial. am my advisees are all until that 50% range but they are conservative like you, if you went to above 5 and 10 billion

would be greater amount in private markets. i think that in the chart we provide that data the universe when you go above 10 billion and be small. easy answer is, against this peer group you have 53% higher allocations to private markets which have done well. i would say you know the mead yen in that group is in the 40%. it is not it is not extraordinary but your private allocation in particular is the one you have more than pierce and you can see how well that's done. >> our decision to be liquid we should be careful.

not about may be move write downs but private equity market catches back up. may see [inaudible]. about the public equity, currency -- staff shown it but i don't see it what is our allocation to currencies other than the dollar. we are diverseified may be we don't have a real too much of a currency affect. when i upon sense on page 78 or 79 whether or not we should be going back to a nut roll hedging issue or how much of return is from how strong the dollar has been. >> a strategic issue i'm -- look in i if am figure out should we do something. >> we have not highlight today here. you don't try to actively manage

currency. you were currency expose urs the product nonu.s. managers not hedging those expose urs. you are exactly right it has been a huge factor looking back. but in fact, if you looked at the results in the last 2-3 months the u.s. dollar started to go the, way. most plans don't hedge. and simply except the currency risk with international equity allocation that is what you have done. i think as we dot liability study going forward we should look carefully how much come from currency and decide when we outa hemp. problem with hemping is everybody get its wrong. say keep should hemp the u.s. dollar they did that september 30 they valid lost a ton of money already they tends to

cycle lieu time. we'll put more in there about what your currency exposure is. it is not more than anybody else you are not trying to play that game. it is a consequence of being nonu.s. assets. >> it also currency -- having exposure to nonu.s. currency is a significant source of diversification. a head winds but philosophically it is not something we want to hedge. >> part of history was currency hedging for neutral not alpha. when the numbers are this far out of -- alignment the spread has a significant time to put the hedge on a neutral not the alpha. you are right most people loesz lose that game. i'm not trying to suggest that. if the numbers were not this far separated i would not raise the

question. >> in your comments that followed, on page 79 you showed the median and year trailing and forward. in your comments when you talk about pierce i'm curious about where the p shoes the home index one. those are whether they are signals that our staff should try to figure out fo to make recommendations to put money equities or out. >> yea. i'm trying to suggest that discussion point should be made when reviewing the portfolio >> there is timing issue >> yea. >> let me -- lay the question down what i'm trying to understand. and this then come back to staff in a moment.

on the pages 32 and 33. i want to understand how you report the numbers where the total fund equity fund. the total versus the over lay. the numbers are different. if the over lay number is higher than the total fund without. that means the over lay is adding value? >> correct. >> okay. now these are unweighted numbers on page 32 and 33. i want to go back and ask alison and kirt a question. i condition tell from one quarter to the next. if using leverage that is a taxable decision that staff has the authority to decide to borrow the money and buy the; correct ? seems to be adding

value. it may be instituted paramedic i'm trying to focus in on the decision who is making that decision to do it, when and to do more? this is 2% and the limit is 5%. >> correct. >> we can do up to 5%. >> okay. >> i can 3 worn part negative and the larger is positive. i'm trying to understand -- the decision what, how and when to

lever is an on going discussion largely on alison and me and done in the context of 2 things. our over all allocation relative to targets and with respect to liquidity the 2 dynamics we think about when making determinations what and when to lever. to date. leverages for us has been focused on treasuries.

they give us the results with and without leverage. but they -- nor we have a detailed accounting system. currently our ability to break down that leverage into asset class and how much is from conscious leverage versus cash. that is compromise. numbers here are true.

that leads to the signals from the trailing ind indicators. gi will stop. thank you. i thank alan and kirk and the team in detailed report. appreciate it. as usual. >> we can move on to item 9.

do we want to -- public comment. >> i'm sorry. >> thank you. we have no in person comment at this time. reminder to press star 3 to be added to the queue. do we have callers? >> there are no call are. public comment is closed. >> >> wait online -- commissioner, you want to take grab a box lunch and come back >> yea >> give us 10 minutes issue everybody.

item 9 discussion itemful chief investment officer report. >> hello. alison. >> alison do you want to turn that over to kirt? we hope you get bfrment i will be brief this it is al son's report i will highlight a couple of things. briefly about performance. and provide an update. i want to highlight 2 sections i will not cover the first are description of a variety of initiatives within the victim group around prophecy. portfolio construction and reunder writing of the theme.

life science. china and innovation and highlight at the end of the report we have our fee disclosures that are required under california gentleman sorry. california government code. the public equity markets ral ed and november was the october/november the first positive months in 2022. in the public equity markets in november performance in the markets were lead by e merging markets china meant chinese industries including up almost 20% in anticipation of reopening we have seen for the months assets up 1.9% and we are

roughly flat and down 9% for the year. after the end of month the estimate should be 3 opinion 1 billion of turning to board approved investments. on october 20 of 2022 the board approve in the closed session 50 million dollars to send flex partners the v. 15 million closed on november 23 of twoochl classified a special situation investment in first credit portfolio for credit porfoal i don't fourth investment over all fifth [inaudible]. next on october 20 of twoot board proved 40 million for capitol 5. investment close said on november 17 of 22.

and this investment be growth capitol and private equity. that's it. there is a lot of material but no further comments. commissioner heldfond, questions? commissioner heldfond you are muted. it is a discussion item. we can move to calling item 10. please. >> we need public comment. >> [inaudible] no audio.

good afternoon. can you hear me >> thank you, for allowing mow to sit in your seat for a mobile home. commissioners, thank you for your time today. buffer is the monthly activity report. if there are no questions on the activity report i'm happy to give you updates at this time. >> okay. >> so, as you know, price selected our fund manager. we have been working with them in getting the demographic information and pension information so they can design [inaudible]. in the midst of contract negotiations and our work with russell on an extension. our contract with russell expires the ends of the year. and we plan on extending our contract with them until june of next year. as we are targeting that to be the roll out of the new fund. >> with regards to target fund

work we have a meeting with the committee in january. we look forward to presenting a recommendation to the committee. alcohol include class and manager searches in the event there is no classes or replacement classes. that come out of this research. we look forward to sharing that and benefitting from their guidance. that's targets use. as you know the contributions are increasing for 2023. it is 2,000 increase for the regular contributions. we had shared those with you last month that is on line. we have been working close low across diameters just to make sure they get the word out as well to employees. so we are hoping to pig back off the momentum we received. and how the department includes

references to the [inaudible] in contribution in their communications. >> and finally, we have planning to in the new year planning to reduce the number of our weekly webinars. and the reason for this now the webinars are being hosted 3 days a week. it is the same presentation on a day. fridays is you know women in investing and tuesdays is after tax. and that's repeated. the ideas reducing am number of rebel nar system to encourage to get out in the field more. as we know san francisco is open and more people are returning to the office. people seem to benefit from our in person out reach. one. our councilors went to a muni barn and they were excited with the information that you provide

hay gave him his own office to encourage him to come. you know it ranges across the department. some are still doors closed and others can't wait to see us employmented share that news with the board as well. and i believe that covers everything -- at the highest level. happy to answer questions. at this time. >> commissioners? thank you. have public comment, please. >> thank you. we have no in person comment at this time. any callers, press star 3 to be added to the queue. do we have callers on the line? >> there are no callers on the

line. thank you. public comment is closed. >> thank you. will you call item 11. >> item 11 discussion item. schedule of 2023 retirement board meetings. >> alison are you joining us? joy think i can handle this for her. before you, you have a schedule of meetings for next year to year board meetings are the dates begin to you in this item. are the dates that are regularly scheduled meetings as we continue with the thursday morning meetings andmented to have that before you so you could make plans. and we know you are all business and if you could set your scheduled aside to attends on those dates that would be appreciated and if there are problems we can know in advanced

and perhaps make accommodations. alison has provided to you some -- reupon minder that the committees need to meet. and she provide a tentative schedule of when we would like it set the meetings and she is also highlighted some near term priorities that we wanted you to keep in mind so that you can understand why we need to set the meetings. and we are looking at operations oversight committee will need to meet once in order to review the budget so the board can vote within the charter time frame of next year and we have government items that need to be addressed by the committee and the board and personnel items. i'm happy to take comments that

the commissioners may have at this time. >> yes. i have a question. hello. can you hear me. >> yes, we can. >> because i was confused i thought we had a thursday meeting until the end of this year and revisit the dates. i'm confused. commissioner. i'm unable to speak to that you want to put that before you just in case this is the schedule that is made for all of next year. >> afternooning >> i thought we voted have it until june. gi think alison is that you weigh nothing there. >> can you hear me okay? thank you, karen.

commissioner bridges what we were trying to accomplishes when we do every december which is put forward a calendar of establish that for the following year. so trying to be consistent with past precedent we put the dates fourth because we only approved the meeting dates for the board through june. >> i put forward the dates if we were to stick with the current dates this is not an action item we are not voting i wanted provide information should we stick with the dates but we will. >> that's final i remember voting. that was a point for me. and we would revisit. okay. >> thank you. i think i would like to reiterate. most important low we like to get some of the committee meetings on the calendar we know how busy you all are and how it is hard to get things scheduled

so you can plan and we can that will be fantastic. we have dates set for the. i shocked they were not on this sheet. i will circle back on that. >> they came in the day after the materials went out. >> they are not updated. >> thanks. can you hear me? >> okay we -- [inaudible] we as a board need to address helping alison and staff find times that we get these meetings set. and -- lined up so we can do actually the business that we

should be doing in an organized manner and that involved a lot of committee work and -- just more on issues in the board meetings. i can only encourage all commissioners to jump in when requested whether a doodle to finds the time we need these meetings and -- it makes staff and not having them it is -- does erode staff's time. let's and i know that -- president safai agrees with me on that.

the conflict with july 12 and the july 12 policy oversight committee. >> yea. they can meet in the same day you are right dependses what is on the schedule. >> it could be per nan i [inaudible]. okay so. thank you, for that report. [inaudible]. we have no in person public comment at this time. any callers, press star 3 to be added to the queue.

moderator, do we have callers on the line? >> there are no callers on the line. >> thank you, public comment is closed. item 12, please. >> discussion item governance training. >> good afternoon, i'm joined by ashley and julia from [inaudible] and they are cochairs of the public pension and investment group and also our government consultants we had a presentation in august, i'm sorry april of 2022. and we should get it on the screen. . we are on slide 3 now.

we had an april 22 duty's presentation. we will give a quick recap of that presentation and a deeper dive on 2 topics in those are the rules and responsibilities of public requirement system trustees and prudent delegation of duty applicable to investment functions. and we hope this dive will help us set the stage for tasks you will be encountering in 2023 and beyond. >> thank you. good afternoon members of the board. to recam briefly, the primary topics of the presentation that we provided in april, first of all, we define whatted a

fiduciary is. the duty of loyalty that you all have as trustees. which is the duty to comply with the benefit rule. use trust funds for the benefit of your members and beneficiary and administering the plan. the duty of prudent a prudent fiduciary with experience in the areas of that matter to the retirement system. and i think there is a typo not with a like experience but with experience. with the duty to diversify investments. which is a specific duty under the california constitution that applies to you as trust eyes of

this retirement system. assure competency of the retirement system assets to pay promise to benefits that is a duty of a trustee of a retirement system. to make sure benefits are timely paid and you have the assets to do that. and finally to administer the plan with plan terms and other applicable law. >> again, to -- only provide what is provided what is permitted by the plan terms to provide that. we talk about theed differences between the fiduciary and the settler function of a public retirement system. a fiduciary is the trustee administering the plan in compliant with fiduciary responsibilities the settler is the city who sets the term of the plan originally through the

municipal code. the legislature to some of a city retirement plan to the extent there are gentleman code that apply is officers but more important low for the perspective of spurs the city charter and the municipal code and related provisions adopted by the settler who is the board of supervisor in this case. that is not in your role when you are sitting here as a trustee on a retirement board you are act nothing a fiduciary role. we also began our discussion of the topic that is going to be a focus today. and that is am how fiduciaries prudently delegate certain of their responsibility to other fiduciaries. and manage the delegations.

because, on the second or subbullet point in the front it requires to you act with experience. but there are going to able number of areas where what the prudent thing to do is to delegate to those who are experts. we will talk about that more. recapping now turning to the roles and responsibilities that you each have. the in -- an interesting component of your responsibility as a spurs trustee, you have a number of different roles that we out lineod this slide. the first we already discussed a bit that is your role as a trustee or fiduciary, which brings with it a host of responsibilities.

the law affords e normous a lot of importance on. the second role is as a public official. so unlike private plans governed by people in the private sector, you are administering a public plan and under california law you are considered a public official when managed investment this is makes you a public official. who therefore is subject to conflict of interest rules. subject to open meeting laws. subject to a host of rules that apply to you as public xhshls this would not apply if you were a private sector trustee of a plan. that's a difference than what you have here. third, you are assigned authority over the administration of the system and the investment of funds of the

retirement system. and you retain in all instances responsibility for the oversight and monitoring both of the spurs fund. the fund and the san francisco defined compensation plan the dc plan. the fourth responsibility that is dissecret and part of the others but discrete to be recognized it has particular responsibilities that flow from it. that is the rule as a decision maker who has quasi judicial authority. example is disability retirement. you adjudicating the rights of somebody to receive or not to receive a disability retirement. and then finally, you are a policy maker with quasi

legislative authority over the governance of the retirement system the example is the function that you have. in consultation with your services coordinator and your consultant determining what your various assumptions will be that set the contributions required to be paid to fund the retirement system that is a policy maker role. >> in think burglar governance with respect to that fiduciary role the first bullet point on the last slide. we note that it is important for trustees to understand and comply with the fiduciary responsibilities of care and loyalty. and we will talk about that as it applies to functions of the

retirement system. secondly. each of you come to the role from a different place. some of you are pointed. some of you are elected. and those -- the way in which you come tot board is part of the plan design. it is anticipated you will come from the different place. once you assume a position on the retirement board you are all fiduciaries with the same responsibilities to the over all best interest and members of the beneficiary in the security of their retirement benefit. i paused well for a moment. this responsibility as 2 parts one illustrated afternoon appointed member has no different responsibility to say the person or the city that ash pointed it than an elected

member who was elected by the membership. you all have the same duty of loyalty. second low that is something specific. and it is something to something specific not simple low it look out for all interests that a member may have. your responsibility is to taik make sure your member are timely paid the benefits that are afforded to them under the plan. it it is a specific role that you have as a trustee. and that duty to your participates and beneficiaries under the california constitution takes preps dent over any other duty. so there is no duty to sacrifice the security of promised retirement benefits or vested promised retirement benefits to

your members because it is expensive to the employer that does not take or does not dwell discussions of -- mitigating volatility. of -- of managing costs. may be appropriate in the prudent judgment of the board what is most critical is to making sure that you are funding the plan in the way that will be able to allow pay the promised benefit when due. >> and we know the end share that trustees need to understand the deferd and agents and beneficiaries to the principles. they are important principles under california law and -- complicated. but articulate when you think about do spooep keep in minds

the governance roles. we would like to go through a few do's and don't's that incorporate the principles you heard from ashley. so -- the first item of what you should be doing is considering how investments of the retirement plan ensurety ability of spurs to timely pay retirement benefits. and you may recall from a moment ago that goes to the duty to you owe to payments and beneficiaries. but a don't would be, retirement board members considering whether the retirement plan investments further the city's policy goals that would not fulfill your fiduciary duty. another thing you should be doing is assessing whether the

policies and actions further its obligation to provide accurate information regarding planned benefits to members. but a don't would be directing retirement staff to meet with city leaders to follow their instructions regarding implementation of the plan. and that would be you know a city elected leader. so, and another item you should be doing is to determining assumptions as recommended by the actuary to fund spurs to pay promised retirement benefits when due.

impact the current budget and how that will pay out over the budget looking whether you can pay the requirement benefits when due to participates and members. starting off here an important role is selection, monitor and compensation of the ceo, ci oshg you did this past year and also in the selection of the actuary. including the decisionmaking regarding spurs in the investment of the assets.

you can govern throughout use of committees. vice president heldfond mentioned. that maximizing activity and oversight they include the investment committee contains all the members of the board. deferred compensation plan. operation's oversight. governance and personnel. another important way government in a compliant manner is throughout development of and collective adherence to policies and applicable laws. you heard a bit about how you

are a public official. and as such you must be compliant with california ethic's rules including gift reporting and limitations. and open meeting rules. and an example of open meeting rule is that you have to upon notice your meetings provide the public the opportunity to participate. and violation of open meeting rules would be for meetings to occur where the public has in the been invited that can happen if you have few are members participating in meetings not noticed. less than a quorum but meeting with the same fraternal outside the organization or went board who is relay to board members at subscent meeting what is other board members think.

avoid risk by complying with these rules. another thing is deliberate with respect to the administration of plan and very much assets. and through receiving and commenting on reports by staff and outside advisors. next slide. with the discussion oversight here, and focusing on oversight as staff. as duly noted the selection of staff compensation. hiring and compensation of ceo and cio is really fundamential to your over of sight. of of how does that playute for

you to monitor staff? first of all it is a direct report to the board. so is your legal council. certain consultants and others is appropriate as well. your cio, ceo is accountable to the board and any committee. that you have regarding executive staff and consultants and will report to the board regarding significant matters. as part of this monitor and oversight it is important to work close low with the ceo cio to develop business or performance objectives. that can be member 've measured the following year as you perform your annual performance

evidence. asked to set a meeting in january. in order to work with your ceo and developing performance objectives by the latter half of your fiscal year. there has been a lot of transition. now the time for a governance perspective to put pen to paper and develop some -- objectives and your -- evaluation policy. of the committee will work with the ceo on doing that.

we urge to you set a meeting. in january with the chair of the personnel committee and the members agreeing to a date where you can go through and have those put in place. bring them to the board for adoption in january as well if possible so you have a full 6 months you are ceo can work toward those. you are also going to need to finalize the personnel evaluation for your services coordinator. which is i bit behind schedule. because the meeting has not been set but will be set, we trust in january. of 2023. so you can get that taken care of as well. >> next slide.

with respect top investments the board of spurs over sees investments. the board approves investment objectives, strategies, plans and guideline are for the investment of the time benefit plan ask the deferred compensation plan. the investment board develops and confirms or amends the victim policy statement at least every 2 years. and -- the charter for the board says that you will approve investment partnerships and advisor in the alternative and real estate asset classes and allocations. what staff noted is that in practice, the board has come approve private and public investments in all asset

classes. and one of the key dwhaes we are going to provide some discussion opportunity in education on today relateless to different delegation models with respect to investments and how the board may wish to consider roofing that toing for 2023. and foiblely the charter says the board will commission a study of assets and liability. do a modeling study. every 3 years. each your standing committee has a charter. the committees are to play. investment committee has not to date been a decisionmaking group

but would review and approve policies and strategies and receive education prior to presenting them to the board. and formulating and recommending environmental, social and upon governance to the board and under taking other related initiatives. plan committee recommended investment or other policies per tang to the dc plan. appropriate provide are structure for the dc plan and appointment of vendor. who provide investment, education record peopling and other service. attach reviews the performance of the dc plan.

terms of upon reference, policies and important low the performance. and add sunrises the board >> the oversight committee which assists in the oversight responsibility of the board pertaining to operation, risk management and quality assurance the board engaged in. addressed information technology and data security. considerations. strategic planning. customer service and member education service. also policy related matters pertaining to audits and investigations or inquiries of the city control and are other state, local and federal agencies are to go through the

operations oversight committee. as well as the budget. the governance committee. this is to develop and recommend terms of reference for the board standing committees. for the president and vice president of the board. and the coordinator. the governance committee is to rerue governance policies and recommend new policy to the board and monitor with the governance policy and address violations. the upon gonance committee does need to meet soon. and we recommend that you -- calendar that meeting for january if possible or february you have a host of policy about 10 that were up for review in december of this year on the 5 year schedule and again with new

administration coming in we are at a time we reached that period where -- they need to be reviewed and we recommend you do that. >> with the assist analysis of the chair. there are over 2 dozen board policies includes board communications. education and travel. board performance evaluations. monitoring and reporting. asset allocation and interests. lawyer terms of reference for 5 of the 5 standing committee meeting the board, president and vice president. ceo, cio and the actuary coordinator. there is a code fiduciary

conduct for board the policies the terms of reference and code of conduct must be reviewed per updates and compliance. you heard a moment ago, most have a review schedule and many are due for review this or next year. [inaudible]. just for a mobile home. the terms of reference and gonance policies to provide a framework for good governance practices for other board. and the policy cover a wide range from communications.

a communication's policy. education and travel will policies and one of the board charter says that each of you to sign an affirmation you reviewd and complied with the policies and i urge you to take the time to 2 reasons to mic make sure you are in compliance. board communication policy revised a couple years ago, so that it miclear how trustees are and not to community to members beneficiaries and venders. and potential ventz and you are to community with your coe.

another topic in the policies was --. that they are not to assign tasks for staff. except for the ceo that is a cost management and spurs management [inaudible] policy. that adoptd and comply with. temp being familiar is really important. and here we are out lining what is this in terms of the policies and references that have been adopted and noting all of the different yaroslavsky governorance and investments and benefits and administration and operations and human resource, communication. legislation. litigation. key appointments and monitoring

and reporting. clear clear the charter this applies to board is extensive. again i urge you all to refresh on what it covers. recognizing with respect to all of the duties under that policy, there should be complied with and using the sale, care and prudence and dill jejs of somebody with experience. in order to do that, in order it comply with haprudent fiduciary with experience, responsibility, you really need support from your cio and ceo and staff. and other advisor in discharging your duties. and that involves an amount of delegation and you provide over sight and monitoring.

the governance committee terms of reference notes that it it is to approve or amend the rule and regulations, terms. reference and policy. identifies how to elect the president and vice president annually. this is the governance responsible of the board. cities or describes how you appoint board members and chairs. and personal low what happens after that. once you ash pointed the chairs of each committee what does this committee chair need do. the term of reference says the committee is to meet with staff and have the public meetings that comply with the brown act and sunshine ordinance you set

goals and develop agendas for what you want to pleasure for the year. you report to the board. in most of the circumstances the committees don't take the final action. the committee will recommend an action that come to the board. ensure that fiduciary programs are in place like the one we are having today that gives you training in what you need to know. and the charter says you will conduct performance assessment its assess yourself. next slide. in as to investments the term of reference from the board says you will approve brood strategies and investment policy statements. and plans and guidelines that is consistent with your responsibility as a policy making board to do those things.

as noted in real estate classes and allocations. it does not go as far as you do, which is to approve investments across all assets will lead to the final topic delegation and investments and whether there is an opportunity to consider other models. . every 3 years within the term of reference and responsibilities to the dc plan. it covers administration. proved policy and coalace. establish rules regarding benefits required by the charter. and timely distribution of the number statement laid out as part of your responsibility.

move to operations. they are big items. make sure that the system is timely checking contributions that -- budgets are appropriated and you adopt them and fund to provide financial audit. taking measures needed. >> the approval of the evidence and apply assumptions within it. the employer contribution rates. and you do an audit every 5 year. human resources you appointed your ceo and cio now you other next step of of need to the personnel committee set the

performance objectives. and you are also do that as your actuary and performing personnel evaluations for each those, too. you make recommendations regarding legislation and facilitate the efficient benefit or benefits or investment administration and your policy says it refingerprint add vo kath or taking positions on legislation reduce, improve or

expand benefits provided by the system. prudence where you operate and select and ratify certain service providers that include but in the limited to your consulting act your. investment consultant and legal council. our governance policies and monitor the performance of the fund and the effectiveness of efficiency of the administration of spurs and again you do your

annual performance evaluations. >> we mentioned a few of the policies of the board. and i'm going to highlight one. which impacts all board members the education and travel policy and would encourage to you look at that after this meeting. you see that there are various objectives for this policy. butt main idea is ensure all members provided with the opportunity to acquire the knowledge needed for their fiduciary duties. come facilitates travel for members to obtain the objectives. the goals are important because idea you want to secure a useful level of understanding in each identified topic area i will get

to in the next slide and members encouraged to attends conferences that address topics other than investments. you may be drawn to one topic or another but important to have a broad exposure to all the topics which you should be educating yourself. . participate in accept narc and briefings such as this one. and receive at least 8 hours of training per year on identified topics. the topic board members agree to pursue appropriate education across a range of pension related areas rather than limiting education to certain areas. i will highlight a few. you should be getting trinning on fiduciary responsibilities.

ethics, governance and all the other topics there rather than just being attending i conference in one or few. topics and a given year. . next decide. keep in mind that prior approval is acquired in instances accept sdmars conference require reimburse am of expenses from spurs and association meetings due diligence business or other board business. and acceptance of gifts enable members to attends seminars and conference. keep in minds review and approval educational travel. substance and quality of the seminar or conference. and then after you attends the

conference complete a brief written assess am of the quality each conference and indicate educational focus of the conchs. you should report to the board on information or knowledge obtained for the board member when is did not attend. last 2 are very important so that the other board benefit from your knowledge. >> now we will switch gores to focus a deep are dive on delegation and i will set up this topic to provide the framework for the delegation and we will get in the nuts and bolts of it when jowlia describes how this can be apply in the a circumstance. first noting that the obligation

the trustees have as prudent people that there are certain contexts where -- a prune person is to delegate responsibilities. and so i provided the language to articulate that idea. then whether you are to delegate or will delegate a responsibility. how i do so to whom and how you surprise. next slide. important low when you or the board cio delegates fiduciary duties to staff the staff assume that responsibility to the extent they are delegated. and so you should not be concern third degree they somehow have a

lesser level duty than you do. staff has the duties as well. assigned a third party -- they an investment manager their duty is to spurs itself not to the members in the beneficiaries of the plan there is a slight difference there with respect to your investment you will get a lot of push back. with respect top that duty. there is a dynamic that exists in that arena as you delegate your responsibilities. you retain fiduciary duties. and you always retain fiduciary duties to oversight. here, please know the delegation

is key of fiduciary risk management and appointing a fiduciary is itself a fiduciary function and we included the same prince pels of care and loyalty that apply. >> avoid redunnancey i will not go through this slide for the first bullet point. butt second set are important. because it notes relying on experts and using experts mean they need to have a qualification to be provided with full information in order for to you rely on hem. >> next slide. i would like to talk about

specific low about investment delegation. the members approved under recommendation bilt cio at the time. but did not go to the board for approval. now we have a new ceo, she would like to revisited top and i can that will come before the board and the investment committee in the future meeting. general low, there are various models from victim delegation. one of them is when the board reviews evaluate and approves all investments and determination. second the opposite when the board delegate to the cio and monitors execution of that

delegation. that is cio and staff the third is a hybrid the board makes decisions and delegates other decisions and those delegations can be according to guidelines depend on fund size whether it is public or private and could be delegation for existing managers. additional commitments and investments only. there are verse models that are rib. before we move on i think commissioner driscoll would like to comment. >> he would not. it was in the approved. it never kim back to the

committee. that was plan exclude every happened that statement you made i don't want anybody to misunderstand it was miscorrect. i proernlt the background. by the way since that time one other change nothing has happened. nothing has happened. thank you. il turn over this topic to julia to discuss more delegation regarding investments. >> thank you. of next slide. with respect to delegation regarding investments there is considerations for the retirement.

the various considerations such as [inaudible] management. when we trop and [inaudible].

next slide >> additional factors that impack the scope of potential delegation and decisionmaking is the [inaudible]. [inaudible] the board sides and membership composition. we [inaudible] responsibility [speaker difficult to understand] the size of the

investment alcohol be a critical factor. >> we look at the leverages we may have with certain managers. and the track record and performance of the managers when than i are being selected. and finally. the microphone is off again. on top of your key board you will look at notes and speaking at the microphone. my microphone is off.

no audio.... >> thank you. >> um as i was explaining the additional factors that impact the scope of delegation and decisionmaking is the fun size and bold size in membership. authority and responsibleful officers and leadership. size of the investment, which is a critical component of delegation. as well as leverage that you may have with various managers based on track record and performance.

and the need for external expertise in services. next slide. what those investment entail. what does it look like? it is critical while evaluating and -- minimizing and allocating risks. assessing the risk and qualifying the risks of exposure of loss of value to investment. upon penitentiary to mitt fwat that risk and various components

with respect to check and compliance with law and requirements of the system to make surety investment and the managers comply with the requirements of the system may have. and critical to understand the investment strategy many are comp katd. and complex. critical to establish comfort with the manager. especially if you have done business with the manager before or a first time and new relationship of the last bullet point. you must have monitor regular low the performance compliance in the trigger events. and next slide. i mentioned, there is business consideration and legal considerations. with respect to the business considerations we are performing due diligence and interview

manager. you may do that by phone, in person or now virtual. that does not replace the need to actually visit the manager at the place of business. and conduct an on site meeting to understand where they work and surroundings. review marking material and on top of that the critical aspect will be to conduct your independent research. reviewing the investment terms and [inaudible] the fund raising efforts as well as results of course and -- important to note the stability how long they have been around what's the turn over and the management team and the style. have they changed the strategies

over time in >> here and other aspect is background checks. not just the organization but the individuals who run the base. another aspect is reference checks. and many look to written. business. questionnaires they ask questions and they revow pregnancies and seat responses are consistent with the inspect research and diligence you have been conducting.

the cio and outside counsel the consultants may be involved. and all the monitoring and reviewing the legal versus the business terms to make surety legal documentation you are reviewing fairly and reflect the economic trends of the transactions. what the investment staff are currently doing. they identify investment opportunity and monitor existing

investments. consultants for due diligence. negotiate business and legal terps and make recommendations to the board and if provided with authority by the board they may make investment decisions. next slide. export in investment opportunity. those are investment consultants. asset class. investment managers. outside investment council. and other victim will related service providers. other consideration for investment negotiations with or without delegation. many systems have approved ahead of time with respect to the

legal documentation. the forms and temp lays set out preferred document and they other documents you may be using for every manager. there are pro's and con's with that approach. -- but at the same time, what it does set out the expectations of the uniform regardless of the manager. the same forms are used and those forms comply with the system's requirement. those investment legal terms and business legal terms and requirements that reflected in the forms and templets. additional consideration for negotiating legal documents to decide what are the deal breakers. the business or legal side are not met but you still are comfortable with the manager and want to pursue the strategy and believe in the investment itself

and the deal breakers means the deal is terminated and that is that the second bullet point there refers to legal terms. legal terms don't reflect 100% what the forms reflect, do you still dot deal because of all the considerations the investment manager. >> looking at the returns. ef and fiduciary duties you may have in engage with that manager. and important to note the role of internal council to ensurety proper checks and balance met when negotiating the documents.

everything presentd and the comment that -- work was done on the topics previously as the commissioner noted, certainly is not a circumstance where a decision has been made. and one of the ways to get additional points of reference and -- frames of models or -- approaches to this topic that may be per nan to your board's consideration of how what to do next. would be to seek input from other pension plans on their experience with investment delegation. and to put together a

comprehensive analysis and report that we are going to discuss the program terse of that we have been discussing ceo would like to discuss with you. would be to get information from a number of different california and national systems. in the range of 20 to 25 systems. who have assets under management of 10 billion or more and ask them about their asset allocation. portfolio construction and how they manage their portfolios big picture. ask questions about the exert xees of the internal staff and role in due dill against.

systems vary a bit and -- category. ask questions about the roles the victim consult an plays with respect to the plans. ask whether they -- they -- incorporate difference as between different types of asset types and amounts or levels and investment structure. sends out a survey. it is within the fram parameters

out lined here this among. and your ceo will [inaudible] after this presentation to discuss this further with you. butt plan is agreed to in concept would be to report back to you june of 23 with an option that you would present with the report. this does go back urth to the investment committee for further discussion once -- results come become from the report or to the board. or you can set i workshop to focus specific low on this topic as you wish. and then from there develop a plan of action after discussion of the report. and considerations.

that is the end of our prepared remark. we are happy to take questions and as i noted i think your ceo may want to either take questions or a statement. >>ment to address question this is come up. and a lot the prop that we take in the conversation to provide education not making decisions today and thought it was a good idea i thought it was good step nothing to start afresh. and survey the land scape and understand what pierce are doing based on the investment staff. and education to the board and

make recommendations going forward this . is the first step of several to pleasure that. >> great. and also >> there are items this have not been yearsor longer. i think it goes to -- comment i made earlier about the committee system at the board. and obviously you should this falls into a number of the purviews of committees we have. so -- i think that we appreciate being nudged here and -- think that the ball is primarily in our court to -- pick up the

suggestions and recommendations that were upon begin. and -- do our job and formalizing and i know i'm not sure if he is -- passionate and we should pick up that passion and move forward this is a good -- awakening and challenge. so. that -- turn it over for questions. i like to thank you. i thought it was informative. and regarding future plans like for additional training one thing i noticed as i have gone to interact with folks from other pension fund system that

the sheer amount complexity our plan has when i talk to pierce and organizations. we have complex plans great to incorporate that in our comparative studies. you see on the upon final slide looking at the national systems with similar size and discussions, i like to also sort of create a category of will an extra complex pension plan and how they do that. that is another characteristic that -- and play-off and would have to do. thank you very much. where public comments or questions. >> you have anything.

i will skip over the minor items on the power points. with the make note -- the implication we select counsel the list of 5 attorneys to deal with farm worker farm team work to assist our deputy city attorney in the investment area the board has never been involved in selecting attorneys nor reviewed the work of our attorneys that is a minor issue based on how important the document s. some will remember that -- a year and a half goal a gold be to get our own separate legal counsel. i don't say that to tease -- secilia. that shows you how important legal counsel is and the

independent of a trust fund must be to execute the duties for members. in terms of the thrusts of the investment authority. some of the context is -- one of the major duties is managing risk. it always great to talk about the money we made the complexity this aj was referring to that the consultant was speaking about complimentary. and those great results were based to become and more complex and with the help of bettereen better and sfit indicated investment professional who is can do more work and due diligence and the complicated matters and paid off

>> had is a result based on not luck but work. in terms of everything we do to improve the model we are in the business of managing risk the key to governing managing risk is governance. first key is decision and quality. i reenforce to do it through confident takes scombreers the last the governance issue the last year and a half of the governance committee has not been functioning. this showsut work. in terms of that the out line toward the ends where should the rust survey be discussed. i tell you now. don't bring it become to the gonance committee. merits a strategic workshop and make a huge change in how we'll

make decisions. that's feedback on how to handle the survey. i would -- suggest or ask to you let me look at the survey i have done others if you ask the wrong questions don't be surprised you get a result that is not useful. like the [inaudible] questions that our staff send to any conceivable investment opportunity or general partnership you know how personal the questions are. we should it is equal low person if we are going to survey our pierce how they operate to what we copy and not and don't need to copy and difference with public and private investing and how the funds operate and sounds like the size you are recommending they would be -- peers in terms of size and dealing with complicated

decision making not the size of the dollars it statute complexity from the number of different asset classes you pursue that it is a long winded comment. i'm glad i was here. it was the idea that governance committee to do this a year and a half gg ago and did not get done. to direct our governance consultant it is done on proceed. that's wise to the full board

through the frameworks the opportunity to discuss what come back. of with jowlia having a lot of exposure to very sophisticated plans. that is a really person consideration. to incorporate in our survey and make sure we are addressing when identifying who peers may or may not be what makes a peer in one and less of one in another. certainly both and appreciate them. yes. this is about managing risk. it may have been your decision to only suggest those 3 options for returning to the matter this

say governance matter and important to go to the governance committee. >> understood. and -- understood. it is a governance matter but at this point it can come back in some form. okay. i assume. i will update on president safai on this and the importance of this issue that -- focus obviously on c oishgs o and ceo. going to be push us and drive us and absolutely will [inaudible].

do we have more questions? on the subject? what is the plan for the -- what is the plan for the development of this survey to large grouch peers? i think that should come from our ceo. to answer that i don't know whether she wants to today or -- can you hear me? >> yes. yes appropriation for the meeting i have been working with [inaudible] to develop criteria and questions that would go to a peer group. with a criteria that they out

line in the this presentation to get a robust various complexity and et cetera, so the questions [inaudible] out lined the plan to send that out this among to get the [inaudible] rolling to the extent that there is a preference to review we can make that happen. i have been involved to make sure it is a robust survey. and that will be one hawill get responses to that manages robustness. and inadequate. smart. said it takes a group of the board. and come together and submit to

making this process. any other further comments? i will say it directly i was trying to suggester offer my participation in the development of the survey before it goes out. is that being denied that's the way it is. may be i was not clear. i have been thinking that as to that point no offense to the attorneys in the room. however, decision quality people who participate in that skill who are not attorneys. i know staff has been wise to talk to people like that. that is an angle not simply trying to comply with fiduciary laws capture in the the surway if our peers are doing it better than we might be doing? the footnotes was about over a

year and a half ago when mr. coke upper presented to us the canadian report? i think? >> based on the canadian paper i know some of us you have read it. it goes to gonance, set up, independence and decisionmaking. i will go back to my point about seeing that survey who is designing it strong andrews i want to read t. i spent work and time on thou ask the right question if you can make sure we have a qualified person answering that is great opposed delegateed a junior person and back to us. >> i don't think there was a decision or anything imployedure were not in the lop on anything. and also i will take a comment

you made sort of deegress on the importance of committees about the investment committee was exactly what it was formed for and what it is charge was and term of reference it is. the education of the board and one is the education of the board and your reference to the canadian model is a perfect example of how the investment committee should move forward and work in rep. directions i thank you for adding that >> i the say this, i than everybody from, everybody every board member here has a responsibility. that was fiduciary responsibilities of board member. so. you have [inaudible] as are all of us.

so. [inaudible]. okay. any other. comments? >> thk thank you very much for work with your ceo and cio on developing the survey. she'll community with those of you as appropriate. i will leave that to her. and we will go from there. and come back forward with a board president on agenda this at the appropriate time and forum. i would appreciate input from trustees and compliance with open meeting law and compliance with gonance how your president and your ceo wish to proceed but we appreciate the comments about the importance of fiduciary governance and take thanksgiving seriously. we think it is a good time of

year to launch into really best practices for 2023. and all the areas. so thank you for your time. >> we'll be back. >> [inaudible]. there are no call irs. >> thank you. public comment is closed. [inaudible]. >> >> alison i can handle the highlights for you. >> thank you.

alison wanted to report on 2 significant in want department at the upon end of the year. may or may not be aware that grace tammy our human resource director will retire at the end of the mont. last day in the office is tomorrow. and we have appointed i'm sorry. manager to pick up >> and we also are who is our i t director xu know him. this is his last board meeting with you. we are in the middle of a recruitment for his replacement and hope to have interviews early next year.

whether the matter we wanted fwroing your attention the special need's ordinance before the board supervisors was finally approved on tuesday. and the staff will be preparing to implement mostly it changes the procedures can forms. those other highlights. we want to wish you all and your families a happy holiday and happy new year. we look forward to seeing you all in the new year. happy to take questions. if you have anything. alison anything else you want me to add. >> covered the key topics. thank you.

>> i will take the position. the meeting that we on the approximate behalf of the board employees extend our -- congratulations on the grace 'retirement. or moving on. and tell them we really appreciate the years of service and the professionalism. and craig's got and a bunch of -- commissioners that are trying to get their act together and all that. so. we really appreciate it your work and extend that to -- >> do that. >> thank you. >> any questions in comments? okay. thank you.

alison start -- we will call the for the good of the order that you do. >> we have public comment, first. >> okay. no in person and reminder to press star 3. noterator, do we have callers on the line? >> there are no callers. >> public comment is closed. >> item 14 discussion item. retirement board member good of the order. >> i'll say to continue from my point of view continue [inaudible] [cannot understand speaker]. what we the and the board half to do to ensure we are operating

as well as our investments are. is being set and -- look forward to you know out and in largely -- subject matter as we go in the other items that we have responsibilities for as a board. [inaudible]. >> i hope staff has a chance to relax overnight holidays there is always more work coming in i hope you enjoy the holidays like you wished for us. >> thank you. >> a big thank you from the board to the staff. >> okay we will adjourn. >> public comment. to the good of the order. >> right. >> public comment on the good of

the order. >> madam secretary? >> we have no in person public comment. >> are there callers? >> we don't have callers on the line >> thank you. public comment is closed. >> happy holidays, everyone. >> i like the you'veed eating while working. are you saying [inaudible]. [laughter].

the meetings of the fire commission will now come to order. thank you for your patience on this rainy day. i think we'll start. >> okay. this statute fire commission regular meeting january 11, 2023. and the time is 9:10. this meeting is held in person authorized by california code section 54953e and mayor breed's supplement to her february 25, 2020 emergency proclamation. it is possible that some members of the fire commission may attend remote. those members will participate and vote by video. members of the public may attend the meeting to observe and provide comment at the physical location or online at the link on the posted agenda.