president heldfond you may begin the retirement meeting of august 14, 2024. >> roll call, please. >> gandhi? >> present. >> president thomas. >> present. >> president heldfond. >> present. >> driscoll. >> present. >> bridges. >> present. >> thank you, quorum, mr. president. >> thank you, let's apologize number one for the noise. and if anyone wants a good humor about this vocation, you need to read what happens to wamo in the summer garage right across that alley.

i'll let you read it because all the horns went off. >> yeah. >> anyhow, let's do the next one. >> item number 2, communications. we welcome the public participation during public comment period. there will be an opportunity for general public comment at this meeting and there will be an opportunity to comment on each discussion or action item on the agenda. each comment is limited to two minutes. public comment will be taken in-person and remotely by call-in. we will take public comment first by people attending the meeting in-person and then remotely. comments are opportunities to speak during the comment period are available by phone by calling 415-665-0001 access code 2620, then pound and pound again. connect that you will get the

meeting discussions and you will be in listening mode only. when your item of interest comes up, press star-3 to be on speaker line. speak slowly and clearly and turn down your computer. please note the city policies prohibit harassing conduct against the employees and others during public meetings and will not be tolerated. more over public comment is permitted only matters within the jurisdiction of this body and we thank you for joining us. >> thank you. next item, please. >> item number 3 general public comment. a reminder that public comment is limited to two minutes. do we have any in-person public comment? on this item? seeing none, moderator, do we have any callers on the line?

>> madam secretary there are no callers on the queue. >> thank you, hearing no furred callers, public comment is now closed. >> next item please. >> item number 4, action item minutes of july 10, 2024 retirement board meeting. >> move to adopt the minutes of july 10th meeting. >> second. >> thank you very much. and we'll call for public comment please. >> thank you do we have any in-person public comment in this item? seeing none, moderator are there any callers on the line? >> madam secretary, there are no callers in the queue. >> thank you, hearing no callers, public comment is now closed. >> okay. so it's been moved and seconded, all those in favor say aye. >> aye. >> those opposed say nay. motion passes. next item, but first of all,

let me first of all, this is--commissioner, you're here, i thought you weren't? okay. go ahead. i really just want to commend the continued record of attendance of all the commissioners on so far in 2024 and it makes it makes it easier to conduct our business and i really appreciate it. okay. so let's call the next item. >> thank you, item number 5, action item consent calendar. >> move to adopt the consent calendar. >> second. >> okay, madam secretary, you want to have--. >> i have one question. >> sure. >> the travel request starts on the 11th which is a board

meeting day, i just plan on being here today? >> yes. >> thank you. >> public comment. >> do we have any in-person comment on the line? seeing none, any callers on the line? >> madam secretary, there are no callers on the queue. >> no callers, yellow light is closeds. >> those in favor? say aye. >> aye. >> those opposed? motion passes. >> next item, vacancy on retirement board and approve proposed selection schedule. >> commissioners, this is a standard operating procedure agenda item and it is an action item so commissioner o'connor's

term expires on february 20th, 2025, as part of the standard process, the board needs to declare this upcoming vacancy and approved a draft election schedule that will be shared and finalized with the election team. we've put in the materials straightforward but happy to address any questions that you may have. >> any questions or comments? i wish commissioner o'connor all the luck, and if you need a reference, i will be happy. we appreciate and your dedication to being a good commissioner. okay. okay, this is an action item.

>> we need a motion and a second. >> >> second? >> second. >> is that a motion to declare the vacancy? >> yes. >> thank you. >> okay, public comment please? >> do we have any in-person public comment on this item? seeing none, moderator are there any callers on the line? >> madam secretary there are no callers on the queue. >> thank you, hearing no callers, public comment is now closed. >> okay, it's been moved and second those in favor say aye. >> aye. >> those opposed say nay. >> item number 7, discussion item, chief executive officers report. >> commissioners in a moment i'll turn it over to karen to go through the member services dashboard. first i wanted to highlight a couple of items, the forward

calendar that appears in your materials now goes through june of 2025. i've been working with the various committee chairs to calendar the committee meeting, we're in the process of finalizing the dates for our next board meeting, there be the committee chair reports where we'll set out the exact dates as well as the topics to be covered for the year. my final comment before i turn it over to karen, i'm pretty sure that you're well aware of, but all the three charter proposal that impact firefighters and with respect to drop will appear on the ballot in november. and unlts there are any questions, i will turn it over to karen.

>> having this, this was my first go-around as a commissioner in terms of getting, having the number of ballot measures that we were given. we were asked to do what we do. product, so thank staff for stepping up when we're asked to do what we do. and also the commissioners understand how much work goes into just seeming, hey, can you do this? and. that's all i have to say. continue. >> you have before you the dashboard hopefully it's mostly

self explanatory. there were a couple of items i want today point out. our online webinars have been extremely successful. one consistent piece of feedback we've received is that we do them at noon time for most people to be able to attend but many people have asked if we could actually regard them and have them online. and beginning in september we plan to regard them and then posting them. so hopefully we'll have feedback with the next quarter with the one or two that we have recorded and measure whether we get anybody taking a look at them in the off hours. the other item that i want today highlight is you may

notice that we processed over 200 benefits last month between may and june. those are our high, high very intensive retirement time of the year. and we are finalizing, i mean that's a lot to have over 350 retirements processes. and i wanted to highlight and thank the staff during this time of year because it's extremely busy, we get a lot of requests, you can see that in june we processed 262 benefits. other than that, i'm happy to

take any questions. how much time before the actual life and when we go online. >> for the web nazer? >> yeah. >> i don't know the answer to that yet. i will know better when they start to record them, they have not begun recording yet. they're getting ready to do that beginning in september. and it will be probably be the most well attended. we're going to do anytime. i assume that, from information. the webinar are pretty

standard, we're providing. again, the text is not really changing. so they should be there for a long period of time unless we're changing the text. >> like a good library. >> i don't know that. >> often times speakers see

themselves doing it with a complex subject. they realize, hey i can improve this, let alone trying to figure out if the audience understood what they were trying to say. >> and i appreciate that it can be a learning tool for staff. >> thank you. >> any other comments, questions? okay. let's call for public comment. >> thank you, do we have any inperson public comment on this item? seeing none, a reminder to any callers to please press star-3 to be asked to be added to the speaker line. moderator are there any callers on the line? >> madam secretary, there are no callers on the queue. >> thank you, hearing no calls, public comment is now closed. >> next item please. >> item number 8, discussion item, annual review of security lending program for the fiscal year, ending june 30, 2024.

>> we'll provide a review for the lending program for the fiscal year just ended in june. i'm joined by alba mart ins, who oversees efforts. the security lending effort is largely a public market focus program. we work closely with our risk team and monitoring the program.

ella will cover the bulk of today's update. we're also joined by mike. mike, thank you for joining us, he took an early flight from the east coast to join us. security lending program and talk a little bit about industry trends. before i hand it over to he will a ella, a few highlights which ella will cover in detail. our custodian, the security lending program is designed to generate an incremental return, again ella will return a return or how much we've earned the last couple of years. we earn that return in other words, fixed income. the cash that we get, highly risk controlled again we talk about that. we design a program so it's

flexible so if we have securities, we can call them back in order to loan the proxies. and it's a potential source of liquidity. so i want to highlight that, with that i'll turn it over to ella and mike for an update. >> thank you, kirk and good morning, board members. i'll start off by covering why we have a lending program. then discuss what the securities program entails and how it is structured at first. i'll ask mike to highlight market trends over the year and then provide the board with an update of security lending program for the fiscal year-ending june 30th, 2024. in terms of why we have a security lending program, as kirk mentioned it allows first to allow incremental return in

a risk-controlled manner. in terms of how we do that, and the structure at sfers, i'll collect your attention to three. this representative sfers as investor investing in debt securities. on the far right of this diagram we have participant and these parties want to bar o some of the securities. sfers lends the securities for the barors in exchange for a bar borrower fee. as kirk mentioned, the cash collateral is reinvested and managed in a conservative manner with guidelines similar to the market fund. melon performs two roles in

this process. they are the inter mediate between the lenders first and borrowers and they also manage the collateral pool and page 4, we covered some of this already. but the course are the borrowing fee that borrow as well as the income from the reinvestment of the cash collateral pool. the factors that impact revenue, the overall amount of assets sfers has available to lend and how much demand there is for those assets. this metric is a expressed at a utilization percentage. relative to lendable assets. the drivers of demand interest rates, spreads, borrowing fees, and market structure elements like volatility and the regulatory environment. in terms of potential riskses,

we address some period of time mitigaters in the next page but there is a risk that the borrower might default. there is a risk that the securities that are lent are not recalled in the timely fashion. they're related to the page 3 that covers the borrowing of the securities. the next risk is related to the bottom lag of the diagram three, the reinvestment pool. these assets are invested and as with any investment there is a risk of loss. to address these risks, that's i am primented a lending program with a couple of key features listed on page 5. toll address the risk of borrow or default and potential non deliveries of securities, first as a indemnification clause. to address the investment risk

related to sfers collateral reinvestment program, firstly, fully segregated in a managed account and secondly, as mentioned that account is managed under conservative guidelines which are consistent for a money market fund. other noteworthy features of this program, include the controls around proxy voting. sfers has the right to stop lending securities or recall securities if we think it may impact our ability to vote proxies. an additional feature is the cash release credit facilities. this credit facilities allows to borrow from the reinvestment account up to certain limits. this facilities is additional tool of sfers framework. it was not used during fiscal year 2024. now page 7, i i will ask mike

to discuss high level marketing trends. >> thanks alo and alo had mentioned a few things that factor into revenue. buzz when we look back into the program and market wide, there were a few major drivers there. one was volatility and the other interest rate environment. so as alo mentioned, a number of good portion of the revenue, is derived from investing that cash collateral income type fund. credit interest rates have been up the last couple of years, a change from the pandemic era but we've been seeing, we have been seeing consistent rate hikes throughout the course of the fiscal year. so what that really serves to do is raise the ceiling in the program and as we went through

the last fiscal year, you had going into the december calendar year-end, a lot of wall street participant looking to shore up financing for the calendar year turn and what that served to do is widen the spread that were generated by investing the cash collateral. once we got through 131 and we got into 2024, you began to see market participant start to go price the expectations that rates will come down at the beginning of this year or next year. so that had an impact on tam pg down on the spreads and amount of revenue available to be earned. throughout the course of the year around the globe, most have been up, it's been a really strong year in equity markets but what that does for our business and volatility is

a good in our business why somebody would want to borrow securities because of that volatility. so seeing that, broadly there was not much so demand was in certain pockets of equity securities, certain industry that have been in demand for a while. we listed a few here. electric vehicles is one. certainly the meme stocks phenomenal has come and gone through the year. as that happens, it continues to impact certain names. so you see it in certain pockets, but the headline level, volatility is low which is great for the low assets but the lending environment, it limits the ability for us to make money for you. and then, when you think about what we do for sfers specifically, you have a very large allocation to u.s. government bond which as alo

mentioned there are regulatory reasons why participants want to borrow those and the capability that we have and the things that sfers allows us to do, we were able to take advantage of a lot of opportunities. so when you think of the sfers asset mix, that was a big driver just generally. so those are the main points in terms of where and how the revenue came from, i'll take it back over to alo. >> thanks, mike. there will be six billion time the demand and utilization rate.

on the pool of assets, 24 basis points net. evenly split between income earned from the borrowing fee and reinvestment revenue. on the net basis the pool of assets that were loaned about 24 basis points as i mentioned. relative to the pool of assets available for lending, sfers earned 5 basis points net. moving to page 8, here we see the year over year trend of earnings from the program. the earnings of 2.8 million were lower than last year but in line with the historical and expected ranges. on page 9, we drill into the slight decline of this year. the overall suitization of 20 percent was lower than prior years and in particular a dip

during the first quarter was driven as mike mentioned by the rallying markets which subdued market volatility and therefore demand for securities. the table on this page breaks down the program by quarter. on page 10, we break down the program on asset clause basis. the top driver of returns was the earnings on lending out our u.s. securities. our treasury had a high utilization rate of almost 60 percent. the other top earner was equity bucket. even though they had a lower utilization rate than u.s. corporate debt, we had more securities to lend, leading it to be the number 2 contributor this year. on page 11, we see the monthly trend and spreads. as mike mentioned, here we see the spreads begin to go decline start ining january as market

began to price over the course of 2024 and repurpose facility. on page 12, again a monthly summary, this time looking at the program. basis points and the net return on the pool of asset loaned was 24 basis points. on page 13, we provided a review of the collateral pool. backing up the 1.6 billion as of end of june of 30, 2024, we held 1.7 billion dollars collateral. it was evenly split between cash and non cash. the overall pool is six and a half percent above collateralized.

moving to page 14, here is a review of the reinvestment aspect of the collateral review. this portfolio is yielding a 5.5 percent and conservative manner, the details credit quality and maturity profile are listed on this page. the 5.5 percent yield that this reinvestment is earning, we see the trend on page 50. while base rates moved a little bit during the year, the yield on the overall reinvestment portfolio decrease came down as the beginning of 2024 because of tighter spreads. that concludes the first program update portion. i will now hand it back to mike to discuss updates from melon. >> so the regulatory

environment is a big driver of our business both creating opportunities and forcing us to run our business better to respond to the various regulators around the world. and there were a couple of major ones that we've been lookering at over the last year and going forward and regulatory initiatives. so a major one that just came into affect this summer was dtc's move to one-day settlement cycle here in u.s. which means if you sell a stock today you have to deliver it tomorrow. well if i have that on loan to somebody that sort of complicates things. so we undertook a number of initiative to see both improve our technology, improve our tools as well as link up with some vair yes firms for to* make us better and faster and

allow us to better. so that means is sells an asset that is out online. i very rarely do i have to ask for a borrower and ask for that back. i have more of those assets in my program have them available. so we don't have to call on the borrows for the vas majority. so what that serves to do is maintain the transparency that is security lending program should have to sfers and to your investment managers. that happened in may and we saw minimum impact to date on it and i think that really speaks to the things that i just mentioned. another major change that we're preparing for coming in 2026, will be the mandatory clearing of u.s. treasury securities.

so in an effort to make the market safer and improve liquidity in the market which is massive, the fcc proposed a rule in december that all trading and government securities would have to be cleared. that impacts the things that we do. so you're already have done all the hard work legally speaking in terms of updating the program and to allow us to continue trading. so beyond that, there are a number of other tools that we're building up for lenders to help with the transition. so that's been a major area of focus for us. it's something that we knew was coming and prepared for and

this team has understood that as well. and has been ready for this change for a number of years now. a third major one is fcc rule 10c1 which is a, it's actual just delayed again indefinitely, but it is a rule that is coming that will increase transparency into the security lending market. what it will essentially do is put the obligation on the bny to report a number of data points related to the trading activities everyday in an effort to increase market transparency. in the eurozone, we already do something like that again. so this is something that we're doing for sfers again and that's something that we will continue to do with no impact to your investment program. so those are some of the biggest things that we've had

going on. i'm happy to answer any questions that any of the commissioners would have today. >> just as a review for the board, today we have discussed why sfers has the securities lending program, the mechanics of our program including the drivers of revenues and risk. we discussed specific features, market trends and update from our custodian and provided an update on the performance of sfers program. i may turn it over to the board for any questions? >> are there any questions? i have one. are these changes that we're facing? are we do to expect commencerate fee rate increases on the next renewal of our arrangement? >> nothing that we've discussed

will warrant that, sfers team has been a great partner and we've been able to do a number of things that has helped investment staff and things like that. that's not something that i'm considering at this point. >> thank you. >> the bottom of the page four, you list two leads. were there any such losses in the portfolio run by jp? >> of bny? >> i didn't ask you, i asked tim. >> the answer is no. >> second question. those dollars are better than soft dollars, thank you for helping run the program, thank you tony melon, how many of your time during the year, on

average is applied to this program? >> over the course of a quarter about four hours. >> good. n.and i would say few other hours, kirk has to watch what you're doing, about four a week? >> four a quarter. >> thank you. >> thank you for this presentation. >> of course i'm a fan and the returns and the way bny melon manages their program is very well done being the largest custodian. i want to go back to the collateralization, is that because of the international piece? i'm curious why you have the big buffer there.

>> i'll take a stab. >> it represents a conservative position by this board, over conservative. >> right but i'm surprised, it was posted. they don't normally post. >> it's dictated by the assets that we're taking in as collateral. as you said when there is a risk, we ask for more because we're dealing with converting u.s. dollars into euro to replace and then there is also depending on the, if it's we're taking in securities as collateral and when we look at the risk of the basket that we're looking at, we'll start to start 107, 110, 112, things like that. >> exactly, that's what i want today know. and what would that collateralization would be?

>> that's not something, that's not what our program does. >> what would be your form for clad racing. >> speaking for sfers, it's euros and sterling and equity securities listed, ets of the same sort and this is not like some sort of leverage, they're very well understood very liquid names. government bonds, u.s. and other g-20 nations. the most developed economies in the world. and certain types of high grade corporate. so what that really serves to do is create a number of more outlets, pledging preferred by borrowers by a number of reasons. it's beneficial, that's the line they want to line up first of our securities and you're at the front of it. >> okay. and then, on 10c which i've been following a lot on the

transparency issue, is our main, the i guess, the u.s. the u.s. arm of securities lending, are they focusing in establishing any papers on it, or are they working to help establish what that should look like? >> absolutely. so bny has a number of our senior leaders like rma and things like that and yeah, we've been having a seat at the table in terms of shaping this. we wanted make sure, it's something that we're doing in europe and it's something that we think it's sensible and important but we wanted to make sure that our program sort of view, we want to make sure that we're providing meaningful things. the security lending market, they're different types of players that get charged differently because of who and what they are and the risk. so it's not just like buying and selling the security where

you want to pay as little as you can so some of the initial requirements in the rules seem a bit ownerous and some has changed. but clearing the transparency and giving regulators that look is a great goal and we think that's where the rules ended up. >> and it keeps changing, that's why i ask. >> yeah. >> and in the past year, did you experience any borrowed default or any problems, not in the sfers problem in your overall program? >> no. and we do review borrows from time to time and each has a credit limit that is determined outside and that's a the bank wide of limitations and, we do eliminate borrowers from the program. if they're not borrowing, why

do we keep underwriting them but in terms of default or something, no, we have not had anything like that. >> and subjected to the annual review? >> it's much more frequent than that, but yeah. it's a quarter review. it's a daily review, we have credit professionals that are seeing these things. they see these things as they come in. so yeah, that is something that we're frequently concerned with. ultimately, if you look at the way the sfers is written, these are my risk. and so, there is a lost institutional thought put into the risk management because it's our obligation to observe any sort of impacts from the borrower default. it's important for all the regulators to make sure that there is a lot of money on the balance sheet set aside for that purpose. >> thank you so much, it's a

great program. and the team at sfers has done a great job managing, so thank you. >> any other questions? comments? thank you very much, we appreciate your help and partnership. do you want to call next item. >> public comment. >> public comment, sorry. >> do we have any in-house public comment? seeing none, moderator are there any callers? >> madam secretary, there are no callers on the line. >> thank you, hearing no callers, public comment is now closed. >> okay, before we call the next item, how is the next item a shorter item? let's do item 9.

call the next item. >> next item is placement policy litigation policy. >> commissioners as you know, we continue to review all of our policies and make sure that they are currently updated and reviewed as required by the policy itself. so what you see before you today is a review of the securities litigation policy and the placement account policy. we've included in the materials the current policy and a red line sorry, a red line to the existing policy and a clean line version that we're looking for your approval on. these policies are dated, so i first updated to our current for bat and the red line that you see is the change of the words but not change of putting it into a new format because that would be difficult. we just wanted to state that for the record. the changes that you see in

these two policies are to update and be consistent with our current policy approach. in particular on the litigation policy, we wanted clarify the role of city attorney and securities evaluation council and that's consistent with how we've been operating for quite sometime. we are also making a change or proposing a change to wer the threshold for claims from 5 million to 4 million. it will be evaluated. we think this is a reasonable threshold, we don't want to miss out on opportunities that may not require significant work where we can make money and by lowering we have the opportunity to review and discuss and discuss how we want to move forward. again, that is really, lowering the threshold is based on our opportunity with a recognition

of using our time efficiently. and then on the private placement policy, really there, the changes to reflect current titles, the fact that we have current investment delegation. happy to go through with more details. >> i have a question. it concerns responsibility and securities litigation that is goes beyond the, the expertise of the city attorney. and who makes the call when we need to find outside counsel and alike. >> well, for the reason that we don't have the in-house expertise or we don't have as much as some external counsel, we do outside counsel monitoring the portfolio and making recommendations to us about when it may be more

appropriate to participate as lead counsel. and we evaluate that internally before we bring in any proposals to the board to participate more actively. >> okay, so you, run that by me again, in terms of, you have securities litigation counsel that you, the city attorney's office arranges and it's outside the city tonser office. >> that's correct. we have four firms, they do not charge anything for that monitoring and they bring to the attention to the city attorney's office. >> okay, you answered any question. >> okay. >> any questions? comments? >> does not look like you've got one. >> i just want to make sure, you obviously understood her answers, they will decide who the attorney will be, not us.

>> right. >> okay, it's always been a bone to pick. >> yes, express beyond this issue, a lot but i got what i needed to know. >> i was going to make a motion to adopt. >> okay. >> both policies for security litigation and placement agent. >> stll a second. >> second. >> thanks for concluding the red line version. thank you. >> thank you. >> okay. let's have public comment, please. >> thank you, do we have any in-person public comment on this item? seeing none, moderator, are there any callers on the line? >> madam secretary, there are no callers on the line. >> thank you, hearing no calls, public comment is now closed. >> commissioner thomas. >> i just wanted to echo tracy

driscoll's comment s. >> it's been moved and seconded all those in favor say aye. >> aye. >> those opposed. motion passes. can we bare with us while we go grab something and eat in front of you. let's take, let's take 15 minutes,

>> ra proved in closed session commitment of 75 million to resurge enter technology partner. we committed 35 to that fund and it closed on july 31, 2024. this is a buy out within the pe portfolio. next, for the tres opportunity six under delegated authority we invested 75 million in the opportunity fund. the investment closed on july 29, this is a credit opportunities investment within our private credit portfolio. and it was not in the original posted materials, but because it just closed but wanted to

verbally provide the update on credit solutions 3 at the board meeting on june 12, 2024. the board approved in closed session an investment of up to 75 million, our investment to 75 million to the fund closed on july 7th within sfers portfolio. that's what i had for the cia reports and happy to address any questions. >> thank you. the recognitions the staff got are tremendous it makes, i always said that having the staff that we have from top to bottom makes any job as a director or commissioner much easier.

and i can only thank everybody for their effort and everything they do. >> i want to echo commissioner's comments. i cannot say that i'm surprised that we received accolades. our staff has continued to impress me every time i've had to go and deal with other organizations and go to a training and understand how much work it is put into every meeting that we have or decision that we have to do. while i'm proud, i'm not surprised. >> any further comments or questions? okay, let's call the next item. public comment. >> thank you, do we have any in-person public comment on this item? >> sanchez, protect our benefits as a watchdog agency, it's important for us to acknowledge when there is

accolades coming to sfers, got 100, city good. so congratulations on everybody here and staff. i think it's important to acknowledge because that's, we watch when you're doing things you don't like and we do have to address when we think you're doing things that are very good. thank you. >> thank you, commissioner. >> thank you for your comment. do we have further in-house public comment? seeing none, moderator, do we have any callers on the line? >> madam secretary, there are no callers on the line. >> thank you, hearing no callers, public comment is now closed. >> next item please. >> thank you, item number 11 discussion item, san francisco differed compensation plan quarterly planned review. >> thank you, ms. armanino. >> and you come bearing gifts. [laughter]

>> good afternoon, commissioners, president heldfond, thank you so much for being here. today we're presenting the quarterly update where we drill down and provide details on the four pillars of the plan which includes investment operations and record keepers. up next is operations, increased its guarantee crediting rate for 3.14 for the third quarter. stable value is considered r capitol vehicle for conservative investeter and holds almost a billion. our stable value investment manager has a 5-year contract with the plan that expired june of next year. as much the plan is undergoing a search process with our consultant and the timeline actually has been provided in the memo before you. can we move to the next page. you can see that there.

i'm pleased to say, when we get to the next page. i'm pleased to say that we are operating ahead of schedule and are potentially inviting semifinalist to present at the october dcc meeting galyard also published a quarter update that's been included in your materials for reference t.highlights the market outlook, inflation forecast and key economic indicators. and speaking of markets, i've asked our consultant to provide some key insides into last quarter's performance as well as the last current market. if we can fast forward to the quarterly update which is at the end of this memo please. thank you so much.

>> great good afternoon, i'll be doing the update in september meeting but since we have through june in front of you, there is a lot of good stories to tell. some of is more of the same, growth continues to be the top performing fund, and i'm looking at the year to date performance just over 20 percent. from a themeatic perspective, that's the largest area. your 7 active managers, 5 are out performers their benchmark some by considerable margin. one is even with it and that's the large growth. one is under performing and that's the real estate fund. and that process is well as under way on implementation basis.

so big picture again, stocks did very well. small cap and international paled which is a theme that we've seen. the bond market you'll see the active core manager up 12 basis points. we'll see the third quarter, the bond market has bounced back and up over 3 percent on a page but just as a reminder, volatility does happen. i know everybody is paying attention to inflation, what the feds are doing. sometimes you see that forecast pretty quick in the changes and in the stock and bond market. and largely i'll finish by the funds. range between 3 and a half percent and almost almost 10 percent for the longer dated funds and they're all either or

above their benchmark. so pause there and see if there is any questions. >> any questions? >> if there is no questions, i would like to move to the next pillar, which is marketing. launching a targeted direct mail campaign. can we go to page 5 in my memo. this is where we can see more details in the targeted method. we included 5 different versions, which was defined for the five separate cohorts. this was received in early august, it was dropped in july and received in early august and a follow-up email was sent this week. details can be found on page 4 and we've included samples in the back. we launched a new webinar and

have been working on distribution. the webinar highlights the estimate of healthcare cost and retirement such as the probability of long term care needs but dental insurance is not covered by benefits and how costs are also higher if you retire before medicare eligibility. also attached is a sample of sfers benefit statement mailing that drops in august, this is a very affective communication channel for us as there is always a spike in activity after members receive this statement. and finally, i'm pleased to announce that our theme for retirement security month will be be your own influencer. so with the rise of social media, we thought this approach

would resonate well with our prospects. some samples have been provided for reference, if you move to page 6, you can see a quick preview of what that will look like nrsm will continue through the september and the plan will be featured at the benefit fares that are held throughout the city. board members have been provided a sample of these games as well as the gift that participant may choose from after attending our annual in-person seminar at the main library on october 16th at noon. so we look forward to meeting our participants and prospects there and everybody will be prepared to answer questions and enrolled onsite. if there are no questions on marketing, i would like to move on to operations. on the operations front, on july 19th, not even three weeks

ago, the irs issued new and final proposed for required distributions, rmds. this will take place and will be affective january 1, next year. the regulations do impact us governmental dc plans and helps clarify when our participant and their ben eficiaries must take their distributions. until then, interpreted by secure one and two and pension protection act allows us to have a reasonable standard for compliance. speak ing of the rmds, rmd will be based on their birthday with specific ages detailed for those born in 1959 and beforehand. the beneficiary rmd rules vary by type. for instance, you can be a surviving spouse or child or other individuals or state.

there is a new 25 percent ex sighs tax that--excise tax this. was reduction from the prior 50 percent tax and they're lowering it down to 25, it could be further reduce today 10 percent if corrective actions are made with due time. the dsfbp are work to go align with these regulation sxz planned amendment required by december of 2029. for 2024, roth assets were excluded from the requirement and roth participants were all informed. we are also coordinating across departments to implement the new catch up limits for january 2025, this includes the ver i believe 60 catch up where if you're between ages 60, 621, 62

and 63 you have a higher catch up amount verse being 50 but that catch up goes away once you turn 64. so these changes require a lot of pay roll calculations and data programming so that we're making sure that we're at the right age so that people don't get stuck with over contributions. if there is no questions on operations, i can move on to the last pillar which is the record keeper and then i'll turn to bishop who is from our record keeper. voya has been our record keeper since 2015, under a 5-year contract that ends this month with the option of three one-year extension.

they plan to extend our contract by one year due to voya's comprehensive tools. they have provided a fee schedule with service levels guarantee which continue to making our partnership add vant us. voya has recently upgraded their dashboard, their participate dashboard on our website to enhance the financial planning experience. those improvement include inter account i have, new interactive, education models for life events, a better ue, user experience. as stated, here to provide the quarterly review which dives a

little deeper to customer trends. mr. bucking, would you like to? >> yes, and thank you commissioners for your time. i'll go to page 4 of the quarterly report so thank you. just, as trying to have done the last four quarters, i would like to highlight the participant, we have seen growth within the plan over the last two years, and the numbers have increased again. and another increase of 1.29 percent within the plan of the quarter. assets, like wise grow as well as you heard from greg who is calinmarket activity has benefit thed the plan. although the growth was not as significant as the last quarter, the growth of point 2 percent. this can be on slide six as well as you look at cash flow,

the activity of new participants, have resulted and i should say decrease has resulted. if we skip forward to slide 26, just wanted touch briefly with regard to the call center activity. we have seen the few quarters increase wait times as people were calling into the call center. we have seen that decrease this quarterback to what are historical averages, at 21 seconds. that's due to a manner where we have changed our out reach, so we believe some of the steps that we have taken have resolved the calls coming in from the first call have resulted on increased answered times as well. and then on slide 28 just a brief comment with regard to counsel ak sifity, remains strong, dipped a little bit in

june, due to vacation time that went across the whole team but as far as the numbers go from annual perspective, we're ahead of our goals at this point of the year and expect to reach our goals as we close the second half of the terms. with that, i'll answer any questions that you may have for us. >> i have two questions. one, i just want to make clarifications, that you use the word finalist by the interviews, does that mean two or three or one. >> semifinalist. >> thank you, i look forward to reading the piece when they become available. that was done pursuant to the board. i cannot remember if we voted on voya?

>> the, the authority to extend the contract resides with me, we did discuss it in the dcc. >> i remember the discussion. okay. thank you. >> any other questions? are you done? >> yes, that concludes my report. >> very concise, thank you. and thanks for the gift bag. >> they were very very well thought through by the staff so i hope you enjoy. >> they don't match the swear. >>--sweater. >> very well thought through. >> okay, do we need to do public comment. >> thank you, do we have any in-person public comment on this item? seeing none, moderator are there any callers on the line?

>> madam secretary, there are no callers on the queue. >> thank you, public comment is now closed. >> next item please. >> item number 12, discussion item retirement board member good of the order. >> quick question, when i was looking through, i think i might be confused but the schedule of trainings that in the ceo or is that in different area? or was it moved? i might just have missed it. >> it should be in the ceo. >> okay. >> i didn't see it in the agenda. >> i didn't see it either. >> we'll get it to every one. >> on september 25th, i know staff is doing a lot of work.

going is going ahead very well. so hopefully we'll have 100 percent attendance. you will not be there? >> any further of the order. >> motion to adjourn then. >> can we get public comment. >> do we have any in-person public comment on this item? seeing none, moderator are there any callers? >> madam secretary, there are no callers on the line. >> thank you, hearing no calls public comment is now closed. >> next item. >> item number 13 adjournment. >> thank you. thank you every one.

forward/hospitality. >> heart of san francisco an aide so important diverse culture in the name for remarkable individuals like carlton b goodlett a man wheeg legacy is at the iconic lashed

not just a man of intelligent his journey was far from san francisco good had studies earning a mountain lake cut off road in child psychiatric a city that is is campus for staff's contributions a city with a very different place when dr. good let was around and you would see him on streets like the fillmore and what he did he mrs. minority healthcare to people who that did not have insurance or an ability to pay for that. >> dr. good working hard around city hall meaning he would load boxes with people and

they would go to san francisco state mainly and other places as well and protest these unjust treatments and unfairness of their system. >> dr. good was a america civil service activity with naacp and protested for the discriminations against blacks and public transportation and public housing and the reporter as most people come into the building today don't know who he was was district attorney know that not only was a physician, a activity but also an incredible cardplayer. in his spare time. >> and the won a number i published and the also ended

edited another newspaper wells fargo willie brown and dr. good had a close relationship in the early 90s several groups got together to his own dr. good and put together petitions and worked very, very hard to have the official address changed. >> dr. king's day of the celebration is in january, i got to call from mayor brown which i've known for in many, many years to ask me to change the street sign this is remarkable. okay. >> in january of 1999 right after the building reopened, mayor brown and i went outside

at that moment it was still cold street we shut down the word on the sign that read polk. >> put up the sign that said number one, dr. carlson carlton b goodlett white. >> i think that he earned a certain place in respect of all poem he was just a remarkable individual. unfortunately, we didn't live long enough here to see the street sign

>> making to may grandkids a program all about pop ups, artists, non profits small business in into vacant downtown throughout the area for a three to 6 months engagement. >> i think san francisco is really bright and i wanted to be a part of it revitalization. >> i'm hillary, the owner of [indiscernible] pizza. vacant and vibrant got into safe downtown we never could have gotten into pre-pandemic.

we thought about opening downtown but couldn't afford it and a landlord [indiscernible] this was a awesome opportunity for us to get our foot in here. >> the agency is the marriage between a conventional art gallery and fine art agency. i'm victor gonzalez the founder of gcs agency. thes program is especially important for small business because it extended huge life line of resources, but also expertise from the people that have gathered around the vacant to vibrant program. it is allowed small businesses to pop up in spaces that have previously been fully unaccessible or just out of budget. vacant to vibrant was funded by a grant from the office of economic workforce development

that was part of the mayor's economic recovery budget last year so we funded our non profit partners new deal who managed the process getting folks into these spaces. >> [indiscernible] have been tireless for all of us down here and it has been incredible. certainly never seen the kind of assistance from the city that vacant to vibrant has given us, for sure. >> vacant to ibvooerant is a important program because it just has the opportunity to build excitement what downtown could be. it is change the narrative talking about ground floor vacancy and office vacancy to talking about the amazing network of small scale entrepreneur, [indiscernible] >> this is a huge opportunity that is really happy about

because it has given me space to showcase all the work i have been doing over the past few years, to have a space i can call my own for a extended period of time has been, i mean, it is incredible. >> big reason why i do this is specific to empower artist. there are a lot of people in san francisco that have really great ideas that have the work ethics, they just don't have those opportunities presented, so this has been huge lifeline i think for entrepreneurs and small businesses. >> this was a great program for us. it has [indiscernible] opening the site. we benefited from it and i think because there is diverse and different [indiscernible] able to be down here that everybody kind of benefits from it.

>> (music). >> hi, i'm emmy the owner of emmy's spaghetti i offers working that with some kind of fine dining and apron and feeling stuffy and in the 90s in san francisco it was pretty pretense in a restaurant in the restaurant scene i want to it have a place to have a place for my friends to guess i started the restaurant a no better place the outer mission spaces were available that's when i opt in

two 10 he start with all people and work with them and the events they create one of the events we do every year and backpack give away and give piaget away and a christmas part with a santa and bring 5 hundred meatballs and pa get and we're like in the mission not about them knowing where the food comes from but a part of the community. and my restaurant emmy's spaghetti and fun banquet and san francisco not the thing that everybody knows about we stay under the radar we show the showcase i take it food and we started to eat we wanted to have

comfort food and that a claims friend from i take it and helped me create meatballs and dealing evolved over the years in the beginning one plate of spaghetti and a meatball we tried to make the portions as big as they could be. and now we have quite a few types pasta dishes with a la begin and meat sauce or have a partition to a lot of food we are at a point with all the favorites i don't change the menu often 0 i eat here so much but everything is fresh your cocktail menu is the best it's ever been one thing on the menu

our magazine ghetto we change the flavor one of the fun things it is served in the historically we're known emmy's spaghetti as a friendly place and when i opened i wanted my friend to be welcome and other parents to be welcomed and it is very for this is a place for families especially in san francisco and this is where though hold their celebration important i mean you're coming to a family restaurant and you're coming for o to a fun place i love being the owner and pretty sure my life i enjoy running the psta spaghetti place i hope to be here a while we'll see how it goes we everyone is a friend we're hoping you'll be a

>> i think there would be a lot more suffering. >> if i imagine san

francisco without animal care and control, i know there would be thousands of animals every year who just wouldn't get that chance. whether that means going home with a family, being released in the wild without this concerted thoughtful group focused on all these animals. the big picture view and daily care. so many animals would be lost. >> but i don't think people understand what goes on. they don't know how hard the staff works taking care of animals. >> it is just two people. one upstairs and one downstairs and the cleaning is total, 6, 7ish. one side starts off doing chemical, i close these all off so the dogs can't come in the back, and then i'm going to

spray the back, (indiscernible) >> all the magic to rehome and work with a rescue network and all the medical care and behavioral and enrichment, socialization enrichment, volunteers are amazing. so, i think if i had a waish wish, i wish that san francisco knew more about what we do. >> san francisco animal care and control is a vital part of making sure animals in this community are protected and are cared for. we deal with those domestic and wildlife. one of the primary suction is serve as a shelter. when animals have no where else to go, here is where they come. we take in about 9,000 animals a year and the care they receive here and the ability to move

from here if domestic on to permanent homes somewhere else, or if you are wildlife you come here and we figure which wildlife rehubibitator to send to. that is the shelter aspect. we also have animal control officers who are available from 6 a.m. to midnight. >> ask them to give us a call, that would be great. the number is 415-554-9400, and you can just ask for rebecca. thank you so much. bye. >> we receive approximately 20 thousand calls a year for assistance, so a lot is wildlife rescue, lost dogs, dangerous situations. we also investigate animal abuse, animal neglect. got a lot going on here. >> without us, there would be a lot more

(indiscernible) a lot more animals suffering. who would people call? the police? fire? they have their own jobs and don't have resources or knowledge. they don't know how to help animals. so much hoar suffering. >> we took in 2800 animals last year. without a shelter where do the animals go? i think the community would suffer if we were not here. >> whether living on the street or (indiscernible) animals are very important to people, so we are helping humans also, and we are alleviating a lot of suffering by doing our jobs.

[music] san francisco emergency home program is a safety net for sustableable commuters if you bike, walk, take public transit or shares mobility you are eligible for a free and safe roadway home the city will reimburse you up to $150 dlrs in an event of an emergency. to learn more how to submit a reimbursement visit sferh.

>> hello. i'm jaime gutierrez. san francisco is a marfbalist city full of diversity and culture. district 9 is a embodiment of diversity. the mission showcases latino culture with mural street vendors and cuisine. buno heights is aging hippies and young families. [indiscernible] most people know neighbors and value a sense of community. portola is mix of old native and new residents around the world. all these district 9 neighborhoods exlempify what is great about san francisco. yet the neighborhoods are under economic stress. a shortage of