e e e e e e e e e e e e e e well good morning everybody I apologize for my tardiness here we have to elect you okay so who calls the meeting to order okay break it good morning good morning um we this is the Oklahoma City Employee Retirement System April 11 2024 10:00 a.m. meeting and I would like to call the meeting to order and then our first business that we need to do is nominate a protim chair for the meeting Nom Doug okay Doug has been nominated with a first and second and on this one I'm going to go ahead and take a roll call vote um trusty Davis and I'm sorry trusty Nicholls um trusty I just went blank Reese yes trusty Weller yes and trusty Thurman and th trusty um janada so Doug is now going to take over the meeting all right and again I apologize I lost track of time in another meeting there so I apologize for my delay uh so our first order of business is to approve the minutes from the March 14th 2024 uh meeting you should have received those in your packet so I'll take a motion uh to approve those that's been approved and seconded so we'll vote and that passed uh unanimously all right the next item of business is a presentation from our investment managers at Earnest Partners so I don't know Jason if you want to kind of give uh a little intro just just as we did last month were just regular updates for managers getting uh in the habit of having them come in it's been a few years since we've had uh regular updates Ernest Partners is a small cap value manager to complement Silver Crest on the gross side um you'll note from from the ASAP Ernest is uh I think your longest standing manager you've uh had Earnest in the portfolio since 2003 uh one of the things we look for is consistency of of people process um and results and they've been able to do that uh since Inception returns have been well ahead of The Benchmark um I'm not going to go into to details on their portfolio Trey Greer who's uh here we'll we'll talk about that but I do want to mention uh as we've communicated to you from time to time uh we reach out to managers and make sure that we're getting the most favorable fees that each client is is is getting the most favorable fees when you initially invested with them in 20 3 uh I think it was early on in the life cycle of this fund and you got a A Very favorable fee uh schedule uh and looking at that uh talking to them this week we felt that there was some ability to to negotiate a little bit lower fee and so they're willing to amend their fee schedule uh currently it's 100 basis points on the first 10 million and then 70 basis points thereafter they're going to the thereafter is going to go down to 60 basis points so that'll equate to about about a $60,000 a year savings to the to the plan and we'll work with them and staff to get that amendment to together uh so I wanted to mention that steal the Thunder from him uh since we've both worked on that together but Trey I'll turn it over to you great all right thank you Jason all right well it's good to be back it's been uh probably seven or eight years since I've been out here and uh for the last time and then about 20 years since I first came out here so as Jason said we really enjoy uh getting in front of the long-term class for a lot of different reasons but again my name is Trey Greer I'm a partner at the firm um and it's always nice to get to Oklahoma City my son just moved here six months ago so anytime you need an update I'm always looking for a reason to come to Oklahoma City now uh but anyway so um let me just update you and I don't want to take any more time that's needed I'll kind of get through it fairly quickly but always open to any questions that you have uh let me start with just a firm update there's no changes to report um in terms of the structure of the ownership of the firm or the process that we follow so in terms of our ownership uh since we started managing for you 21 years ago uh we continue to be employee owned you know early on we would meet with people and they'd always say yes you are until some big bank or brokerage company comes along and makes you an offer and then you'll be in a subsidiary of some big organization we've always said it just doesn't really fit us what we want to do and so after 23 years I think people are finally kind of taking us out our word that we really do think it's the best business model for us so uh in a lot of different ways one is we control our own resources we don't have somebody telling us what we can spend every year on headcount or investment research or anything like that uh allows us to attract really good talent in terms of people that can pick Securities because it's always easy to attract somebody when they're an owner of the firm or can be an owner of the firm as opposed to just an employee um so that helps us and then just the culture of the firm just having people that feel like you know an owner every day versus just an employee so uh that continues to be and and no changes to report there uh in terms of the process it's the same process that we follow it obviously technology gets a little bit better and how you execute it changes through the years but the underlying three step process that we followed for you for 20 years is still intact uh so we have a screen that we have um that allows us to narrow so we manage a small to midcap Value mandate for you so there roughly 2500 names in the universe so we have a screen that allows us to narrow that 2500 names down to about 150 that we really then can sink our teeth into and understand at a really in-depth level level uh we are long-term investors so we're not Traders you know a lot of times small cap managers will turn their portfolio over 100% a year 70% a year our average holding period is about five or six years and so you know we really are investing in the company not just trading it um and so we really want to be able to really uh analyze it in depth so narrowing it down to 150 allows us to really get a good handle on on the names that we ultimately choose for you which is a portfolio of about 60 names um and then F you know as a part of that process too risk management is very important uh as Jason mentioned we've been able to outperform really over all the periods uh and one of the ways you outperform over a long period of time is not necessarily outperforming all the time but just minimizing the underperformance you know sometimes if you don't dig a hole that's your best friend you know you don't necessarily have to shoot the lights out all the time but if you don't dig a hole every couple years you know you can you can beat the benchmarks and so that's what we've been able to do and so our risk management is really focused on minimizing that risk of underperforming the benchmark um and so that process again has been in place since Inception and one that we continue to continue to follow uh if uh you're kind of going along in the book I'm not going to hit all these pages but uh I believe on page three just real quickly in terms of the markets I'm pretty sure everybody in here probably follows it pretty closely so I won't spend a lot of time here but it's obviously been a good start to the year uh been a good 12- Monon period so small to midcaps up about um uh you know six to 7% for the first quarter and up about 22% over the past 12 months so it's been a strong absolute period uh continues to Trail large cap large cap is kind of the place everybody wants to be large cap growth so you hear a lot about the Magnificent Seven and and all that but um small caps continue to Trail a little bit by about four to 500 basis points a year for the last two or three years but one of the things that that may change fairly soon and kind of turn that around other than valuations valuations just on a standalone basis make a very compelling case for small cap so if you look at small cap right now compared to large cap it's trading at like a 30% discount on a valuation basis and if you go back kind of 30 or 40 years small cap typically trades at a um a premium to large cap which you'd expect because small cap companies grow faster than large caps you'd expect to pay more for a dollar of earnings but uh the last four or five years it's actually been reversed so from evaluation standpoint small Cap's well positioned but also everybody's talking about interest rates nowadays and you know it's it's looking we had a inflation number that came out yesterday that showed that inflation was a little bit stickier than everybody thought so we may not get interest rate Cuts as quickly as everybody anticipated but eventually they will come and that's usually adds fuel to small cap small cap companies tend to benefit from rates or Cuts in interest rates and so if that happens we'd expect small cap to do well in that environment so again absolute returns have been great Trail large cap but uh like everything else those things come in waves and will certainly turn turn around at some point um and then everybody knows I mean AI is really driving a lot of the large cap returns and um you know a lot of the valuations that you see out there people talk about the market being ex U you know High highly valued and there certainly are some names that are out there but in the small cap Universe there's still a lot of well you know performing undervalued names and so you hear a lot about um you know Nvidia and the super micros and all the names that are in AI chips and the valuations they're trading at but you're still able to buy a lot of companies that are involved in that whole Evolution but just not trading at those super high valuations and that's kind of what we're looking for on that yeah we just touched on this before the meeting but it's not as relevant to the value side but on the grow side the super micro and micro strategies Jason do you mind being up at the microphone just so yeah real easier to hear I just wanted to follow up on that just because the the challenges that active small cap particularly on the growth side have and you heard this from Silver Cross last month as a result of some of these AI names that make up three or 4% of the index now we're up 250 to 300% and now they're no longer small cap names it's but they're in the index so it's been a challenge to to keep up if you don't own those yes for sure and the growth managers has been tougher because we don't as a value manager we're not typically investing those type names but you know he talks about super micro that was a company that was A5 billion doll in name a year ago and it's almost 60 billion now and it's still in the index so it's a huge waiting so it's sometimes your relative performance can be more who you don't own than what you do own so like why aren't your names performing where they are performing we just didn't own X Y and Z and those are up you know 500% and you're not allowed to own and you're not allowed to them that's right just from um uh you know from a a guidelines perspective so um it's it's much more of a um headwind for the growth per for the growth guys but certainly even on the value side you do see a little bit that but um AI like everything else it's it's going to you know make a big difference but at some point you know there's only so much you can pay for a company and it to be realistic so uh but there are a lot of small cap companies that will benefit from that you know we kind of think about it in the um you know picks and shovels approach from the gold rush you know you don't necessarily need to find the gold but if you're selling the picks and shovels for the people that are looking for the gold you can make a lot of money and so that's kind of the approach we have is there's a whole ecosystem out there of companies you don't have to be Nvidia but there a whole ecosystem of companies out there that will benefit and support Nvidia and what they do and other companies and that's what we're looking for so with that let me jump into the portfolio update so on page five you can see uh the results over all the periods uh since Inception and so your portfolio is that uh Top Line and then the Benchmark it says Blended but that's the Benchmark which is the Russell 2500 value small cap value or small to midcap Value Benchmark and you can see really overall periods the portfolio has has outperformed most recently uh in the first quarter but going back over 20 years so since Inception uh the portfolio is up about a little over 12% the benchmark's up uh about nine and a half uh just less than 10 so about 250 basis points about performance and it's it again I like coming to seeing long-term clients for for a lot of reasons but one is you can kind of see how your you know what you initially present how it actually plays out and you've certainly been uh patient with us we've had some periods where we underperformed you want an managers to under if they always track The Benchmark you can get their services for a lot cheaper by just buying an index so you want someone that looks to outperform knowing that there are periods that you underperform but over time that can wash out and you can outperform and so over 20 years we've been able to do that and it's really been a um really a proof statement as as to what we present to our clients which is we think we can generate about 10 to 12% uh annually of absolute returns and outperform the benchmark about two to 300 basis points so when we go out and meet with new clients that's what we say that's what we've always said because small cap over time generates about 10 to 11% and we think we can beat that by two to 300 and that's kind of what's happened for the last 21 years so again it's nice to come out to long-term clients and be able to look back on on something and see how it's played out um one of the things I want to mention too I didn't mention earlier in terms of the team and I know we've we've shared this with you before but one of the ways we get really the main way we get Alpha is the cons um the composition of the investment team so a lot of investment managers you know first off we don't have a 1 pm so a lot of managers will have 1 pm and you have a lot of research analysts underneath that are walking around trying to give ideas to the PM hoping that their idea will get heard and that Port that idea will be bought in the portfolio we don't take that approach we have 10 people on the investment team and all 10 people are responsible for researching names and then coming together as a group and deciding hey what are the 60 best names we can own in this portfolio so it really is a team approach and what we look for I mentioned our ownership structures we want to go out and find people that are practitioners so I always uh say you know it's it's it's great if you sat behind a Bloomberg machine for 25 years but you really can't understand a company just sitting behind a you know computer screen you have to be out there you know in in industry and actually you know operating a business to really understand what drives a company Beyond if you're just trading stocks and so we look for practitioners so people that have actually been in the industry that they cover so people that have been in the technology industry for 10 or 15 years or the healthcare industry so for example the most recent person we hired about it's been about two years ago uh has a PHD in uh microbiology worked for the CDC for a number of years and then uh a startup biotech company and so we hired him and so he's able to really understand a health care company much much better than someone who just graduated from college and was given you know a book and said hey study up on this industry you're going to cover it for now on so that's what we look for so really these results are a byproduct of not not only the screen and the process that we follow up front but it's really the the the makeup of the team that's able to go out there and really find companies and look at things that most analysts don't look at you know when we meet with uh management teams at companies you know one of the consistent comments we get is after the meeting is you guys ask a lot different different questions than most analysts do most analysts come in here and they ask us about our dividend policy or they ask us about how much leverage we're going to have on the balance sheet uh what's our earnings per share looking like for the next three or four years and we're ask asking much more operational questions because again we're going to hold those companies on average for five six seven years and so that's important to us so I bring that up just because that's really what drives these returns over time and that's the type people that we're looking for at the firm uh on the next page page six um we talk a lot about percentages in our business but at the end of the day you know you have benefits to pay in so it's it's real dollars that matter so we always like to put a chart in here that just shows again you 21 years ago the the Inception value of the account was 17 million um over the years it's gone up over 95 million during that time so uh there's been about $42 million in withdrawals to pay benefits over that time or to reallocate uh and that gives you the $70 million balance um as of the end of the quarter and as Jason mentioned you know it started out at 14 million so that second break point didn't have a lot of impact now it does and so we're happy to kind of share that with you and help uh you know the pl save a few dollars here and there so that's kind of where the portfolio is today so again about 70 million in the smid smid value uh the next page page seven just a couple more pages and I'll wrap it up page seven uh you can we are a bottomup manager so we're not going out there and trying to specifically identify um you know certain sectors or certain attributes but here you can see on page seven and eight just both the sectors and kind of the statistical profile the portfolio on page seven you can see on a priced earnings basis again very reasonable you know we're paying just under 15 times earnings which is in line with the Benchmark so certainly lower than what you would see saying large cap growth return on Equity is just simply how how are these companies using the capital that you provide them for their business and so you can see the Benchmark is in the light blue and your portfolio is in dark blue uh the companies that we're buying have a higher return on equity and then the last one is just the Leverage that they have a lot of times companies will juice their return on Equity by having a lot of debt you take on a lot of debt you get high returns if things are good and you can lose a lot of money if return you know if things go bad but these companies that we buy aren't just simply taking on a lot of Leverage to to get high earnings they're actually you know very reasonably um uh financed on their balance sheet in order to to get the earnings that they get so those just a little statistical profile of a couple we we T tend to buy very high quality companies we like to show that just to demonstrate what that is and then the last page on page eight is again we are a bottomup manager so we're not out there looking for overweights or underweights in certain sectors you know we don't sit around a table and say we think we should be overweight technology or we think interest rates are going to fall next quarter so let's be overweight you know cyclicals or whatever the case may be we're just trying to find good companies that can outperform over a market cycle but it is interesting at times just to see where we're finding you know opportunities at any point um point in time and so you can see on on page eight a couple of the areas where we found more relative opportunities are technology and energy and then areas where we found less is Health Care uh and utilities and a lot of Health Care in small to midcap is biotech and biotech's a hard you know company to analyze because it's really either a um you know you win a lot or you lose everything type proposition and not something that we feel like we you can consistently kind of predict on a on a day to byday basis so we tend to be a little bit underweight kind of that startup biotech type company and so that's kind of consistent with what you see um you know historically with us and then technology we do have an overweight but if you look at the companies we own again they're not the they're not the names you hear about on CNBC but again the companies just supporting the infrastructure for a lot of the technology that's just making businesses and governments more efficient every day you know productivity is something that had really dropped the last three or four years and we're starting to see it bounce back and so Tech technology is a big part of that and so companies that are participating uh in that so with that I've talked a lot so I'm going to kind of wrap it up I'm happy to take any questions um about you know anything the portfolio The Firm or whatever questions from board members I I'd be curious uh you said about five or six years is the holding period for most of your yes Holdings what's the normal reason that something drops out of your um portfolio portfolio a couple reasons one one you know the best reason is it no longer is small to midcap you know that's the great it graduates to high school yeah it goes to large cap so you know that often is the case we won't sell a name overnight just because it gets to you know I know if you super micro we'd sell it for sure it's 50 billion but um but if a name gets above um you know 20 25 billion we'll sell it in that's a reason um two um the uh proposition plays out you know we identify something early on we say hey this is what we think the market misses the market eventually as I like to say gets the joke they realize it and you know you cash out um and then also you know you own 50 I always tell people if you own 60 names and um 20 of them underperform you're top quartile you know if you get two-thirds of the names right you're doing really well and so you know there are always names that just don't do what you expect them to do and you know I say the average holding period is five or six years but they're names that we pull the plug on in six months they're just not doing what they need to be so that's the average at the same time you know there are a few names we've owned for 20 years for you so you know there are certainly some outliers on the on the on the end but um you know typically it's five or six years okay yeah other questions yeah all right well Trey thank you and thank you welcome back to Oklahoma City glad you're my son's moving back to Oklahoma City too so I'm very great that too that's great I may have to move out here now that he's out here that's wonderful so anyway I appreciate it thank you very much all right we don't have to have a motion or anything we just accept the presentation so our next item on the agenda is the consent docket we've got four items there that can be taken with one motion uh if someone would like to make that motion in second we've got a motion in a second and uh so now let's see I think yeah we got to switch back here we go on the presentation as opposed to computer all right and that passes all right so uh the next item is to ratify uh various approvals I believe we do we need to vote on these each individually correct oh no we can vote so we have payroll claims um I don't know uh I think uh on item d uh I think Regina had talked about this where we had some places where the pension was calculated incorrectly uh for I don't know what we have here about 20 some people uh no 16 um and so this is a correction to their uh distributions um I do have one question Gina I don't know if you would have the answer and maybe we can get that later will we be going back to make up the contributions uh back to when they originally retired or is this just a effective um as of um this meeting we are going back retro to when they retire and calculating forward okay I appreciate that clarification I just wanted to make sure that so thanks all right so we've got four items on the uh to ratify I would are there any questions before we move on then all right then we will uh take a motion in a second it's there please vote all right that passes uh the next is the claims docket and I believe the list was attached uh for your approval there to review and so we'll take a motion and a for the claims docket vote all right and that passes all right um and then our next item is to approve uh the following applications for service retirement and we've got five uh on there so I'll take a motion on that and that passes our next item is to receive report of death and authorize the payment of death benefit and authorize the secretary to make necessary changes um for these individuals if you got a motion in a second please vote and that passes all right so our it items for individual consideration the first item is to approve purchase of desktop scanners and personal shredders for erss staff for $2,600 I think the memo kind of explained the rationale there of trying to become more electronic uh in their U documents rather than lots of paper uh any questions there for staff all right we'll take a motion and please vote that is passed that is approved uh Item B is to approve sending Richard Mahoney and Brett Logan to the National Association of public pension attorneys conference uh in June and so I'll take a motion on that that's Mo moved and seconded please vote and that is approved uh item C is to approve the retention agreement with the security law firm of leaton Keller and sucaro to represent osers in Prosecuting a Securities class action to recover losses sustained by system and other class members as a result of investments in scholes Technologies Group um and so and additional information there so uh any questions there if not then we'll accept a motion to proceed with that all right that is approved and second please vote and that is approved and then the last item here uh is to receive the investment consultant report the monthly investment report so I don't know Jason if that's you or okay you okay have some comments yeah just uh G to tag on to to Trey's comments since he's still here this this slide where they showed that initial investment and the return on investment it's one of the best slides I always look at manager presentations and say that that's a great slide and they've always done some form of that but just to put that in further perspective that 42 million that comes out I think we lose track of that when we're doing rebalancing and you have asset allocation and targets and we rebalance from what's done well generally to pay benefits you're you need cash every month every quarter $4 million so we're taking from what's done better to fund that sometimes if things get a little out of whack or we make asset allocation changes which we've done now you do have to move from one asset class to another but just in perspective that 42 million that's about two and a half years worth of benefit payments that has been funded from this one portfolio that's about 5% of your your total fund so um done a good job over that 21e period um going to go through the ASAP report and then we have a a uh another rolling return report that we just handed out that we'll touch on uh in terms of markets markets really continue to to trade on similar themes as you heard from from Trey interest rates uh from dayto day uh the direction of rates or concerns or whatever inflation numbers have been reported really impact uh the markets in the the short term we saw a CPI number yesterday that was a little higher than expected and so interest rates went up the 10year moved up to 455 the 10e is up about 65 basis points year to date so bonds are down year to date and on days like that we see Equity sell off the S&P was down about 1% this morning the PPI came in a little bit I guess lower than expected but still higher than last year and so we'll we'll see what that does uh today the bottom line is it's not looking like there's going to be uh multiple rate Cuts this year certainly not the six that was uh believed middle part of last year uh as we're we're already here in in April and we're starting to see a little bit of a um a selloff and perhaps some of the exuberance as we've hit multiple all-time highs in in equity markets um this year um as we look at your portfolio and I'm let paty touch on this uh we did make some strategic changes to your asset allocation targets at the January meeting so it's reflected in the Target allocation uh but we haven't made any uh done any rebalancing short of cash needs and we'll talk about that yeah so as you might recall we Revisited the asset allocation at the January meeting um you all approved those in the investment policy statement in the February meeting and then when you look at this March report on this page you'll see the new asset uh class targets for each of the um for each of the specific asset for each of the specific asset classes and one of the primary um changes was the target to overall equities so equities the target to equities was 65% and that was reduced to 60% and then there were some some subsequent changes to the underlying sub asset classes so large cap was decreased from 18 to 15 um International Equity was increased from 11 to 15 in Emerging Markets there's a slight change six to five the big change was in long short Equity so that allocation previously you had a 5% Target there and that has been reduced to zero so the Redemption notifications for the underlying strategies was submitted that will be effective June 30th and then it will take about four quarters to receive the proceeds there'll be um a fairly significant distribution that will come back in July and then there'll be subsequent distributions um for four quarters following that so when as we receive those distributions will reallocate those to the underweight asset classes at that time so right now when you look at this page you'll see you know the equity allocation is currently at 68.7% it's overweight the new 60% Target but it's within that range of 50 to 70% um and then as I mentioned men you know as we get these distributions we'll use that as the opportunity to rebalance to those targets and it's it's the lowest risk the lowest V strategy within equities and that's going to be as Patty said when that money comes back from the long short Equity managers number one will be cash needs um and then second we'll go into fixed income so I anticipate we'll be increasing your fixed income allocation pretty significantly with those those allocations yeah the fixed income um was at 20% to 25% so essentially took that money from long short equity and reallocated to fixed income and we'll also be looking at some within asset classes some potential rebalancing within small cap small cap value is overweight small cap growth just because value has done so much better than growth and so we'll probably make some some modifications there as well and then one other thing to note too is private Equity so you have a Target allocation of 15% to private Equity currently you're about 8 and a half% but private Equity is very different than your other traditional asset class is where you make a commitment those dollars are called over time and then proceeds are distributed as um the Investments are realized and so it works a little bit differently so essentially the um dollar is not currently invested in private Equity today are invested across your um you know traditional Equity asset classes large cap small cap and and non us so as we move to performance on the next page um what we while we changed the target allocations we have not modified the policy index yet uh so the policy index will be modified to reflect those changes so meaning the S&P 500 or Equity will come down because as you recall currently the S&P 500 is 35% it represents your large cap long short and private Equity the dis version of the total portfolio relative to the policy index is mostly coming from long short and private Equity doesn't look anything like the best performing asset class of the last year which is large cap US Stocks um that 5% is going to go to the aggregate Bond index in the policy index and so that's going to change on a go forward basis it's not retroactive but ju I I mentioned that because ju over the last two months or since these decisions have been made while we're trailing that policy index that is heavy in the S&P 500 what's actually happened long short Equity year-to date is up 4.7% and bonds or fixed income is down 1.1% so we're actually the timing of the getting the money to work in fixed income H isn't hurting us we're doing uh okay and most of that money is is fairly conservatively allocated so overall uh on a trailing one-year basis we're up about 11.6% trailing the policy index it's the the things that we've mentioned primarily private equity and and long short you'll note private Equity is up 5.8% whereas the S&P 500 is up almost 30% 29.8 and that's what we're comparing to uh in the policy Benchmark uh from a manager standpoint point and we've touched on your two small cap managers uh the last two two months uh as I alluded to small cap has been pretty challenging for for active managers particularly on the grow side um those a couple of names and mentioned Trey mentioned them super micro and and micro strategies they 50% of the return of the Russell 200000 growth was from those two stocks so if you didn't know those two stocks you were keeping up with with the index and most active managers including your manager Silver Crest doesn't own those stocks and for multiple if they didn't own them at the beginning of the year when they were small cap stocks they're not going to buy them when they're now 50 billion market cap stocks and so that's a a pretty challenge uh pretty big challenge for for small cap managers so that dispersion on a one-ear basis for your overall small cap mostly that's it's really all coming from the grow side still good absolute returns but it's been a a challenge to keep up with with the Benchmark there on a bright note I'd say um your real estate while down your real estate overall down 4% on a one-year basis the the Morgan Stanley Prime fund uh heavy allocations to uh industrial and multif family relative to peers and other Odyssey or openend domestic core real estate funds um a lot lower waiting to uh office uh which has helped uh dramatically so while they're still down down about half as much as as The Benchmark we also have quite a bit of unfunded uh commitments in the non-core real estate uh to we made commitments of 10 million to Blackstone in March of last year 10 million to Angelo Gordon uh in October of 2022 15 million to Starwood in uh January of 2022 so that's a total of 35 million of which uh there's still about 25 million in in remaining commitments mean they haven't called or put that money to work which we think is attractive they're going to be able to put money to work in an environment where you know there's there's a lot of distressed Properties or distressed property owners out there that are going to have to at some point sell what our good properties but uh they're just not able to to meet their their capital structure currently and it'll be a a good uh entry point going forward um so with that um next month we'll have the quarter report and we do have a private Equity recommendation next month that we'll be BR bringing we don't have any managers until Jun the June meeting and I think we'll have the fixed income managers at that time all right any question questions yeah I have one uh I probably missed this so I apologize for it but what about International developed Market that's underweight from the ranges we have right so that was increased from 11 that was one of the areas that was increased so as money starts coming back we'll be using that as well uh to to rebalance into there so that was at 11 and that was moved within equities although equities came down by five mhm International went up large cap came down so when we when this money starts coming back we'll do rebalancing among everything okay thank you and kind of along those lines I mean we're we're pretty far overweight of the target for a large Equity large cap Equity do you I mean I assume though that that's going to be a gradual process to bring that down kind of what what would you think that over the next year two years that that that'll change or I think we'll start to see some of that change even over the next six months okay yeah and we're going to have because the private Equity is 7% underweight and we can't get to that Target intended to to have an overweight in in US equities for the unfunded okay portion of the private Equity okay yeah but I don't know if that question was coming because of where valuations are today we are looking at large cap is has been and will continue to be the primary source for your cash needs on a month-to-month basis yeah and the cash needs will be for you know benefit payments as well as capital call notices for these for the private Equity allocation okay yeah yeah all right any other questions here from board members thank you all y all right any comments from board staff or citizens receive oh we didn't to receive okay so uh if uh we will vote to receive the report so we need a motion in a second and now we'll vote and that is received all right very good we have no comments and so uh we are adjourned thank you all very much for
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