he headed our asset allocation for many years at nepc. he's the strategic advisor to the state of wisconsin. perhaps one of the longest users of leverage in the public fund world. i will turn it over to chris and he'll walk you through this. >> i want to step through this and i'm not going to try to read everything on the page. just present to you as an informational topic, something you already discussed but digging deeper in leverage. leverage is all about somethingg your returns. if will have negative returns, magnifying losing more capital. leverage asking done through borrowing and that's something that some investors do. it's more common as you see on this page, for public funds and other large institutions use derivative as a way to get inexpensive leverage and doing it on a diversified structure. you already have leverage in the portfolio. we've identified it here as three broad type. type one is really an explicit leverage that you get when you're investing in a fund vehicle that's going to employer leverage. bementioned private

now support a lower allocation to absolute return and new allocation to global asset allocation per nepc july 15 document. my actual preference, as i said years ago, so heavily overweight what the strongest equities and pay them yourself and paying that edging cost instead of absurd hedge fund fees. as i have also said in each market cycle t strongest assets are different but quite persistent. in the 2010 bull market, they were the largest tech stocks which everybody knew that outperformed every fund manager in every class. please seriously think about that. please include the monday written comments in the minutes, not the verbal comments today. thank you for the opportunity to comment and good luck. >> a thank you for your comments. moderator, do we have any further calls? >> madam secretary, there are no more callers. >> thank you. hearing no further calls, public comment is closed. president bridges? >> president: thank you, madam secretary. next item please. next item in item 15, discussion item. deferred compensation manager report. >> good afternoon, everyone. thank you for your t

for a couple of years so it's for arrival and they'll update us on the as set liability study that nepc has recently completed and anna and allen are also going to update further on the sl allocation that we provided brief overview in february and it made further progress and we'll bring items to the board next week and this is a pivotal meeting and it's a important meeting and it serves and it's foundational for the as set allocation and that we're going to be bringing to the board in september. >> thank you. it's the pio and >> this is an action item only. >> i have one question. on page two, the dollar amounts there, do they reflect money from the secondary sale, all of it, some of it, none of it? please correct me on the mistake. >> please correct me if this is mistaken but these numbers here are not of the secondary sale. we haven't received all of the proceeds for that but the nav is completely out of our portfolio and we have a receivable on the books for the cash still pending. >> we remove the economic exposure from the sales so we do not have the economic exposure to the 59 re