Tammy Kesler

The Board of Trustees Retreat agenda spanned two days and covered extensive training and informational sessions. Day one included Trustee Training, Fiduciary Training, a detailed session on the Tour of the Financial Statements covering Cash Management & Rebalancing, a review of the Legislative Landscape, an Actuarial Session, a discussion on Diversity of Thought, and evening dinner arrangements. Day two focused on investment primers, including Global Equity, Credit/Fixed Income (including Direct Lending Education), and Real Assets/Real Estate/Absolute Return (including Niche Logistics and Hedge Funds). The agenda also included a Compensation Review, SmartSave 457b Plan Education, and Securities Lending Education and Review.

The agenda for the meeting includes several actions and informational items. Key discussion points cover the approval of the Nominating Petition Counts for State and Municipal Positions, the 2024 Election Report, and the Chief Information Officer (CIO) Report. The board will review the Audit & Budget Committee recommendation concerning the PERA FY25 Operating Budget. Informational items include an update on an investigation approved by the PERA Board in July 2023, and education reports from board members regarding various webinars. The consent agenda addresses the ratification of retirements, duty and non-duty deaths, affidavits for free military service, and the setting of future meeting dates for May 2024.

The meeting featured an extensive overview of the economy, inflation, and markets by a representative from JP Morgan Asset Management, discussing global growth deceleration, recession probabilities, and the Federal Reserve's stance on interest rates. The committee also reviewed quarterly performance, noting that despite strong performance in real assets, the total fund needed to meet its assumed rate of return due to market selloffs. Detailed performance reviews were conducted for illiquid real assets, real estate, credit (including distressed and alternative credit), and private equity. Key discussions included asset allocation positioning, particularly regarding energy exposure in real assets and building out the private credit portfolio. Furthermore, updates were provided on manager selection activity, including approvals for a co-investment vehicle and an infrastructure fund, as well as Q3 cash activity and securities lending performance. The Investment Policy Statement and Investment Committee Charter were reviewed with no recommended changes.

The meeting involved the approval of the agenda and the consent agenda. Key new business items included motions to accept and forward recommendations for Strategic Asset Allocation and Benchmarking to the full Board for review at the next meeting. Additionally, the committee voted to accept proposed amendments to the Investment Policy Statement Appendix and send them to the full Board. Informational items included a presentation on the Q2 2022 Market Review, Total Fund Performance Review, and July 2022 Preliminary Performance Summary. Other informational discussions covered the Q2 2022 Bonds Plus Portable Alpha Review and updates on Manager Selection Activity, Cash Activity & Rebalance, and Securities Lending for Q2 2022.

The meeting agenda includes the approval of the agenda itself, a roll call, public comment, and several action items. Key discussion points involve reviewing the Fiduciary Counsel Contract for FY27, presenting the 2026 Governance Committee Work Plan, and conducting the Annual Review of the Governance Committee Charter. Additionally, the committee will review and potentially approve a Non-Financial Conflict of Interest Form.