Washington State Investment Board

The Audit Committee meeting agenda included the adoption of the September 2, 2025, Meeting Minutes, which was completed. Key discussions focused on the Fiscal Year 2025 Independent Financial Auditor's Reports and the WSIB Annual Report, where unmodified/clean opinions were issued across all nine audited financial statements, with alternative investments designated as an area of emphasis. An executive session was held to discuss financial statements and staffing updates. In internal audit matters, the committee reviewed the status of prior audit recommendations, the results of the Audit Recommendation Follow-Up Project, and the Fiscal Year 2026 Audit Plan status. Management discussions covered the Enterprise Risk Management Annual Report, including updates on risk appetite statements and the 2025 key risk dashboard, as well as the results of the biennial Board Policy Compliance Review, which noted three administrative exceptions out of approximately 400 provisions reviewed. The committee also received the Quarterly Investment Referral Report.

The Board Meeting agenda included the adoption of the December 18, 2025, Meeting Minutes, followed by a Public Comment period. Key reports presented were the CEO Report for January/February 2026, the Administrative Committee Report, and the Private Markets Committee Report, which included a Private Equity Investment Recommendation for Public Pension Capital, LLC. Other major items included a Quarterly Performance Update, a Private Credit Implementation Timeline Update, and a detailed Innovation Portfolio Review and Update. The meeting concluded with an Executive Session to discuss safety and security, followed by a discussion regarding the Chief Executive Officer Evaluation and Compensation.

The Administrative Committee meeting focused on the Chief Executive Officer (CEO) related items. Key discussions included the review of the annual CEO Evaluation process, where the Committee agreed to use the same set of questions and incorporate senior staff feedback into the results analysis, which will include both mean and median scores. Furthermore, the Committee reviewed the CEO Performance and Compensation Policy and recommended that the Board reaffirm the CEO Performance Evaluation Policy 2.00.220 and the CEO Compensation Policy 2.01.110, agreeing that no immediate changes to the policy itself were necessary pending the outcome of the CEO evaluation results.

The meeting agenda included several key topics for the Audit Committee. Discussions covered the adoption of the December 2, 2025, Meeting Minutes, although the approval itself is excluded from the summary. External audit items involved the Financial Statement Auditor Independence Review and the Entrance Conference for the State Auditor's Office Fiscal Year 2025 Accountability Audit. Internal audit discussions focused on the Audit Recommendation Status Report and reports concerning Public Records Requests and Public Market Investments Trade Processing and Settlement, along with the Audit Plan Quarterly Status Report for Fiscal Year 2026. Management reports included the Annual Investment Compliance Report and the Quarterly Investment Referral Report. The session concluded with an executive session dedicated to the Audit Director's Performance Evaluation and Compensation.

The meeting included the adoption of the September 2, 2025, minutes. A key agenda item was the Policy Revision concerning the Long-Term Services and Support Trust Account Policy 2.35.600, which involved minor language changes and substantive updates reflecting constitutional amendments affecting WSIB management responsibilities, including the addition of a cash transition account. The committee also held a Public Markets Education Session presented by Brandes Investment Partners focusing on 'Emerging Markets Volatility: Risk or Opportunity?'. Discussions covered macroeconomic and geopolitical issues, Brandes' bottom-up fundamental investment process, navigating tariff challenges, and specific value opportunities such as Mexican Real Estate Investment Trusts (REITs) related to nearshoring trends. The session concluded with discussions on portfolio characteristics and relative valuations.