Matt Michael Johnson

The meeting, conducted via Microsoft Teams and phone due to COVID-19 concerns, included the Executive Director's Report highlighting performance metrics for the Combined Funds as of June 30, 2021, noting a 30.3% one-year return and outperformance against the Composite Index over ten-year and twenty-year periods. Key discussions involved investment strategy, including the intention to shift reporting comparison universes. The Executive Director's Administrative Report noted the administrative budget was under budget by three million dollars. Following a Request For Proposal (RFP) process, the Board recommended retaining Aon Investments USA Inc. and Meketa Investment Group, LLC for five-year investment consulting services contracts. The Investment Advisory Council presented the Private Markets Investment Program Report, leading to the approval of commitments to several funds including MN Asia Investors, LP, Carlyle Partners VIII, Carlyle/MN Co-Invest, Summit Partners Growth Equity Fund XI, KKR Global Infrastructure Investors Fund IV, Blackstone Real Estate Partners Asia III, KKR Real Estate Partners America III, and Sixth Street Opportunities Partners V. Discussions also covered the SBI's proxy voting actions, specifically regarding ExxonMobil directors, and ongoing engagement on ESG initiatives. Public testimony was heard from several groups.

The Board approved several recommendations during the meeting. Key actions included authorizing the Executive Director to negotiate and execute new private markets fund commitments across Private Equity, Private Credit, Real Assets, and Real Estate asset classes, with commitments totaling up to $1.25 Billion across eight specified funds. The Board also approved establishing an approved range around the Private Markets target allocation and increased the policy limit for Market Value + Unfunded Commitments. Furthermore, resolutions were approved authorizing the SBI Administrative Committee for budgetary and performance review processes, approving the FY23 SBI Annual Objectives and the Executive Director's evaluation process, confirming reappointments and new appointments to the Investment Advisory Council (IAC), and reauthorizing the Proxy Committee with delegated proxy voting responsibilities. Finally, the Proxy Voting Guidelines were approved.

The meeting agenda included the call to order, reports from the Executive Director, and consideration of investment program reports requiring a motion. The Executive Director's report covered the administrative budget status, updates on the FY24 audit and annual report availability, planned 2025 meeting dates, and quarterly updates regarding divestment statutes concerning Russia/Belarus and Iran, as well as thermal coal holdings. The report also noted that eight Russian holdings remained on the divestment list as of September 30, 2024, due to market restrictions. Furthermore, the board addressed the Public Markets Investment Program Report, which recommended retaining Fidelity Institutional Asset Management for its Concentrated Emerging Markets strategy following an extensive search process. The Private Markets Investment Program Report sought action on new investment commitments, including a proposed commitment of up to $125 million to EQT Infrastructure VI.

The meeting agenda included the call to order, the approval of the Minutes from the December 10, 2024 session, and a report from the Executive Director covering quarterly performance summary and administrative matters. Key action items involved the reauthorization of the SBI Administrative Committee and the Proxy Committee. Furthermore, the Board considered the Private Markets Investment Program Report, which included recommendations for new investment commitments, specifically authorizing a commitment of up to $300 million to Blackstone Capital Partners Asia III. The meeting also included a discussion of Legislative Priorities intended to refine reporting requirements and align investment authorizations.

The meeting commenced with a performance summary as of June 30, 2024, noting that Assets Under Management (AUM) stood at $146 billion, with Combined Funds representing $93.7 billion. The Combined Funds achieved a return of 1.7% for the quarter and 12.3% for the fiscal year, outperforming long-term objectives over ten and twenty-year periods. Asset allocation was in line with targets. A significant portion of the meeting involved the Private Markets Investment Program Report, where the Investment Advisory Council recommended commitments to four existing managers. Commitments approved included up to $300 million for BlackRock LTPC II, up to $250 million for Summit Partners Growth Equity Fund XII, up to $150 million for Thoma Bravo Fund XVI, and up to $200 million for Thomas H. Lee Equity Fund X. Several informational reports were also reviewed.