alex is head of fixed income at nepc he's doing work with staff. talking about the board's long-term strategy, everyone is aware, interest rates are at incredibly low level now. we're in 2% rate. the markets have not discounted that yet. primary risk to the portfolio which we've identified is rising interest rates. you acted wisely to reduce your public fixed income exposure to 23%, ten of which is in private debt, which is largely floating. you have protection against rising rates and the opportunity to do more rigorous research on the underlining holding. in the public markets you have 13%, 8 which i will describe are treasuries. they are there to anchor leverage. they are there to protect against extreme draw downs which leaves you with this 5% in multistrategy credit. to put that with individual dedicated managers and high yield and converts, those subsets operate under very short-term conditions. the high yield you can go from high interest to spreads to low interest spreads, make a lot of money and then reverse it. trying to have a manager wh

>> al, can i just add nepc has reviewed both of the items and is supportive of the recommendation. nepc has reviewed both items and is supportive. >> president: thank you very much. appreciate that. thank you. do we have -- i will entertain a motion on this item. >> move to adopt the recommendation. >> second. >> motion by commissioner heldfond. was there a second? >> second. >> commissioner driscoll seconded it. >> president: thank you. public comment please. >> thank you. reminder to any callers to press star 3 to be added to the queue. moderator r 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. >> thank you very much. roll call vote please. >> [roll call vote on item 9] >> thank you. president casciato -- excuse me, commissioner stansbury is absent. president casciato? >> motion passes. next item please. >> item 10, discussion item, chief investment officer report. >> thank you. commissioner, i will try to go through as much as information as i can and focus on investment returns,