Oh, the 429 in cash, how much is equitized . Anna . 250. Working off of your division chart of placements, not counting the fellowship vacancies the box underneath seniorsenior portfolio it says management assistant is that an Investment Officer or what . That title is correct. So thats the classification jay may want to speak to. But that is karens former title and karen is doing work that is akin in most every respect to a security analyst and she does have other duties. Shes not been fulltime in private credit. But the plan is that in the longterm, is that she will be fully dedicated to private credit but that has not been her sole responsibility thus far. Its a personal matter we shouldnt be talking about but i can say she is, bill has indicated, transitioned from the Administration Team and now pretty much predominantly has been through time working with eunice on the investment team. And so this is an interim classification under the citys Civil Service commission. I didnt know anything about that person. It had to do with the functions that position is supposed to perform. Certainly that person i mean the security analyst position has very specific minimum requirements and specific duties. They were be operating at a different level of experience coming in. The amount of work, the quality work in the due diligence. The quality of the work has not within been an issue. Were monitoring carefully. This person served a probation period and absent a resource. This is a resource we transitioned. I dont think anyone has concerns over the quality. Its not quality but the amount of workload in the acid allocation model is the one i cant get much further into this discussion in a public meeting, because it is a personnel issue. You mean personnel about the individual or just the issue of staffing and how we budget for position or build up for this 40 billion Management Plan . Those are budget issues. I will tell you we do not intend to use this classification in Going Forward as part of the investment division, but under the current circumstances in order to get resources, we determined this was an appropriate classification, as well as the Mayors Office and department of Human Resources determined it was a proper use of this classification to provide assistance to, in this case, eunices team. I wont bring up the issue of resources. I often ask about our resources necessary and we have a duty to provide resources when we expect an Investment Officer to do something. Thats why im trying to figure out what that label indicates. Thats part one. Part two is, some of the vacant positions are the fellowships, not that im trying to ignore any fellows but the next question in terms of koa coinvestment, do we have a staff to make sure we look at the coinvestments or are we passing them on because we do not have the people available to do the work . We mostly do not have the resources to do much in volume in coinvestments. We just lack that right now. And that is our plan, is to bring resource toss be ables to be able to do that. But we do coinvestments periodically. When opportunities arise, we can do the work in the time it requires and our existing calendar of underwriting manager opportunities allows us to do so. We do it opportunistically. If we do not have the people available, we have to pass. Its not a quality of the due diligence. Thank you for the offer we cant look at it. Theres an opportunity cost and many we cannot do the complete work, even though on the First Services it looks interesting, perhaps even compelling but we either lack the time or we lack the resources to be able to execute in the time required. Theres the issue. Resources not available to do the work. And that was part of the discussion the the investment committee, we need to go forward and request the resources in order for us to be able to except all the opportunities that we believe are prudent. The box for the alternatives equity senior Portfolio Manager the phrase or label alternatives equity, thats a new one on me and can you explain to me why its labeled that way. Yeah. I believe that a misnomer and i believe it should be categorized differently. When vickie did start that was her initial role but she has worked in fixed income for the last two or three years and that title should be replace. Your match it up . Yes. Thank you. That concludes my questions on your report. Any further questions . One last questions the investment staff. We have a budgeted staff of 24. Thats what i thought. 20 on staff right now. The budget is 24, thats what i missed. Thank you. Public comment . When it comes to public equity theres only one investment you need and thats the s p 500. For the past 100 years, the sup has. S p 500s p s p 500 has produced 10 . Let me give you just the last ten years. It did better than that. Tenyear average and performance with the s p 500 was 13. 08 . And this is a a yeartodate return which is 23. 4 . Eacheven the best investor in the world, he wild said well have a difficult time outstanding performing the s p 500. When he dies the money he leaves his wife, he wants her to put 90 in the s p 500 and the other 10 into cash equivalent. You can have all of the experts you want and over the next ten years, you wont outperform the s p 500. Thank you. You said theres additional work that needs to happen and if we fill the four positions is that enough staffing or is there enough to hire additional staff on top of the four . Its the latter. Do you have an proximate of how many additional staff . We will not go forward with a supplemental and what were preparing for is to present in the coming year the resources that we will request through the Mayors Office and through the board of supervisors in order for us to match our roadmap. Youre putting that together now. Exactly building the butch now. Building the budget now and youll know how hasnt additional positions . Exactly and by classification. Just because i havent been through that process with you all for additional staffing positions, do you come back to this body and then take it to the board . It dose through the operation Oversight Committee and the budget is approved by the full board. This board. In full board before it is even loaded into the mayors budget system. Before you start making the rounds. It could be february at the latest. Ok. Great, thank you. Thank you. The budget process is an immediate term part of what mr. Kocher is talking about is the 10, 20, 30year plan, much like the projections and he touched on what i would call the governance items which the board must decide, not the chief Investment Officer. The budget reflects what the board is going to try to do. This was a discussion item only and we shall move on to the next item. Number 10, discussion item, sfbc committee report. Mr. Chair the Committee Meeting was september 17th is outlined, they were stated by the committee and i will have the director go through this and see what her report is. This is discussionitem only. Do you want to call item 11 then. Item 11 discussion item, sfdcp Public Comment please. No comment, move on to number 11. I asked for Public Comment and i didnt see anyone stand up so i said well move on to number 11. Discussion item, sfdc, quarterly management report. Thank you. Good afternoon commissioners. Before you is the sfdc quarterly manager memo designed to provide you with the consolidated high level overview of the plan and the purpose of this home is to underscore the importance of the sfdcp as in 4 billion with a billion, of voluntary dollars contributed by the employees of qcsf to feel confident of retiring with dignity. There are four main pillars investments, Marketing Operations and the recordkeeper. Theyre each attributable to the overall planned success. So well start with investments and the stable value of the crediting rate is 2. 60 and this is guaranteed until the end of this year and thats december 31st. And stable value makes up 25 of the plans assets and thats just south of one billion and focusing on capital preservation meaning investors should expect to maintain 100 of their initial investment. To provide the guaranteed credit rate its wrapped with multiple investment contracts issued by large insurance providers. The value is a complex product and only available through large dc plans like the sfdcp. Gallagher certainly as the investment manager and the contract is set to expire in june of next year. As such callen is leading the managers search expecting to bring a recommendation to the february dc meeting. Cowen is leading the global and Domestic Research is we just concluded the manager interviews yesterday. They expect to bring a decision in december. Can i ask a question about stable value. You said its only available through dc plans . Thats correct. And if we were to look out in the market in Franklin Templeton or whatever, we wont see a Stable Value Fund out there for the average consumer . No, not for retail, no. What about institutional . Institutional is not retail, but yes through other institutional plans and Franklin Templeton offers stable plans through other lanes and lets just say apple has their own 401 k and they could have that as a manager. I got it, thank you. Sure. And in addition, future portfolios launched in september and nearly 5,000 participants invested thus far. For those not familiar with future ready, theyre similar to targeted funds. Theyre designed according to your date of birth. Whereas future ready can be customerrizedcustomized to risk preference. Someone older may prefer a ris different strategy. Millennials are conservative after witnessing their parents financial situation in the 2009 recession. please stand by . It was a great introduction for me, detailed and informative. The type of feedback is very helpful for us and its really good to see where we stand in our participants eyes. And finally on the last comparison slide, i think whats interesting is that you can see more prospects than ever before attended this years seminar. We can see in question one, are you a participant . 21 percent said no in october. This shows our marketing is working and the word is spreading. And thank you to president driscoll for attending the seminar as well. I would like to move onto operation. We are proud to announce that enrollment was up in day one of the transition, which was september 3. It was a great way for participants to enroll any time anywhere, without requiring the plan to hand over confidential employee information to a third party. To date over 300 participants have enrolled via the web, thats in less than two months. On page four you can see screenshots of the online enrollment experience. If you would like the see clear visuals you can go download a copy of the how to enroll online flier or i can send you one. We also launched the new rate escalator. This allows participants to set and forget increases times alongside raises or increases in july. This is slowly gaining ground and we expect more adoption in early january when most contribution changes occur. I should inform the board that the annual irs contribution limbs are increasing by 500 for 2020 making the limit 19,500 for planned contribution. Catchup wb will be 6,500. This will be 39,000. So for participants who want to continue maxing out they can easily increase their contributions online. It takes two minutes. And the annual increases do not carry over automatically unless you opted for it via the rate escalator. Filially last but not least is the record keeper. As you know we have sufficiently transitioned to on time and on schedule on september 3. As part of the transition the plan offers advisory services. Some are comment peremptory such as the online advice tool or speaking with an adviser. Managed accounts are available for an additional accounts. Managed accounts can be valuable to participants in or near retirement. They are generally better served with a strategy designed to gradually spend down their nest egg by creating a stream from various income sources such as social security, pension, any rental income. They offered a riskfree trial where participants could enroll and experience three months of professional management at no additional cost. That promotion has been extended to the end of the year due to popular demand. You may be wondering are the right type of people signing up for this paidfor service. Well the answer is yes. With the average user being age 55 and the average account balance of over 16 this thousand its clear that transitioners and retirees are finding managed accounts to be of value. Or perhaps they cant resist a promotion. Just kidding. [laughter] with that, thats my report. Also attached is the quarterly activity report which is right after the memo. This includes performance transactional data. Im happy to answer any questions regarding that data for the memo. Questions . Before i call for Public Comment permit me to try to add comments to what the manager of the program briefed us on. The value of the management managed to count the third level for which there will be a cost after the free trial period. The fact that how we have opened up how the selfdirected brokerage account can work, though that is not covered in it, plus financial skills which are quite deep that opportunity for participants to invest even wiser or better are incredible good value. The fees in that operation are also going to drop significantly after the first of the year. Again something that they took the initiative to do following great firms like schwab. The benefit is coming to members after the first of the year. Part two, there has sometimes been criticisms about the concept of anewties in this area. A former Life Insurance company has left the operation they sold out that piece of the business. There is some connection to them in it because thats the Way Companies have transferred but they dont sell them to our members. The importance is taxsheltered annuities is a separate label in the irs tax codes. Savings plans are connected of my we are a tax Sheltered Program on the defined benefit side. Thats why i say its probably not a members best choice to be more tax sheltered work on their own voluntarydefined contribution plan. Its not about annuities being bad. Maybe they are the right thing in a small percentage of our participants. It is an option they have. It is not something thats something to be recommended. Its an option. More importantly because our members for the last 20 plus years have been able to contribute to their account on a tax sheltered basis they will someday receive both a pension and what we legally call here in San Francisco an annuity. For accounting purposes they are called both pension and annuity are the words they use together. Its an odd coincidence that we are and all the other members have been investing in a tax sheltered annuity for the last 20years. That is not an option to consider your first choice when you have your own Deferred Compensation Program when you decide how much to invest and how and when you decide to take the distributions. Its totally different than your defined benefit pension plan which we expended most of our time focusing on here. Trying to add to the nice presentation by our manager. Thank you. Okay. Just wanted to transition, i think the transition went very well and especially being a user myself i think the transition was quite easy. So i talked to your time for making a smooth transition. For the process i know there were criteria or goals we hoped the new venture would achieve things like the number of contribution individuals joining their own or creating their own compensation work, having more people invest in their funding, are we tracking those measures in a way that you are going to report back to us . I know its new at this moment but at some point we are going to make sure they are delivering on those goals that we had set for them and they they said they could achieve for us. Absolutely. First of all, thank you so much for those kind words. That really means a lot to me and my staff. We did work very hard over the last couple months. So thank you. And i will share your feedback with them as well. As far as tracking, absolutely, as far as the contracting process we wrote them to hold them accountable to what we expect them to do for us. We do a lot of that tracking and report back quarterly. You can see that in the monthly activity report on page 2 of the monthly activity report, we track the payroll contributions and we also track new participants enrolled so thats aa good way to see whether or not participants are gaining traction and the Participation Rate so we require that on a monthly basis in addition to other things. I saw that statistic. What i meant is are you because its not included in the report about what the goal was. So while you do show sort of what the Participation Rates are what the contributions are, there was a goal we were trying to set in terms of the amount of uptake we wanted to achieve through their efforts and our efforts combined so the question is not so much what it is but is it meeting the goals we set for that increase. Absolutely. Yes. And i would agree yes, it is early and we are trying to iron that out too to make sure that those both sides are on the same page on what the benchmark is going to be so we can move forward correctly. So i hear exactly what you are saying and well make sure to track that and report that at a minimum at least to the dcc. [off mic] thats right. Thank you for that. Ill run it as a test so we can have firsthand knowledge here. Ill volunteer to do that. [laughter] the group to contribute to my retirement. [laughter] its free for three months. Thats right. Just so we can speak from a firsthand view. My younger daughter here shell be well taken care of. And generations to come to evaluate the things im going to ask the committee to put on the committees agenda is the success definition. Without the definition, i wont say it doesnt make sense to have goals but the goals are more than just participation. The comp program and the mission of the defined benefi