Santa Clara Valley Transportation Authority

Amalgamated Transit Union, Local 265 Pension Plan

BOARD OF PENSIONS

Tuesday, June 12,2018

11:00 a-m.

Conference Room B-1 04 Valley Transportation Authority (VTA)

3331 North First Street San Jose, California

AGENDA

1) CALL TO ORDER/ROLL CALL

2) ORDERS OF THE DA Y

3) PUBLIC PRESENTATIONS This portion of the agenda is reserved for persons desiring to address the Board on any matter not on the agenda. Speakers are

limited to 2 minutes. All statements that require a response will be refened to

staff for reply in writing.

CONSENT AGENDA

4) Approve Minutes of May 8, 2018.

5) Approve Requests for Service Pension:

a) Mark Garcia #3560 -.Option F-1 b) Robert C. Lopez #2004 - Option F -1 c) . Albert Reed, Jr. #2221 -Option A

6) CLOSED SESSION

7) Matters pertaining to Personnel: Disability Medical Records.

8)

a) Lee Davis Employee #3082/11245, Retiree #12096

REGULAR AGENDA

CLOSED SESSION REI'ORT

3331 Norlh firs! II reel, Bldg. Bl • San Jose, CA 95134-1927 ·Phone 408.311.5808 ·fox 408.955.0890

9) Approve/Deny Termination of Required Annual Medical Reevaluation for Lee Davis Employee #3082/11245, Retiree #12096.

10) Approve Requests from Board Members and Staff to Attend Educational Programs. (Chavez)

a) SACRS Public Pension Investment Management Program, July 1 5 -18, 2018, University of Califomia Berkeley, Berkeley, CA.

·

b) CALAPRS Principles of Pension Management, August 27-30, 2018, Pepperdine University, Malibu, CA.

11) Approve Tempormy ATU Representative to Investment Committee. (Russell)

12) Receive and File Repmi on VTA- ATU, Local265 Pension Plan Investments for Month of April2018. (Bill)

13) Receive and File Education Policy Compliance Report. (Chavez)

14) Receive Update on Pending Final Benefit Payments. (Chavez)

15) Receive Update on Separated Employees' Distribution of Contributions Report. (Chavez)

16) Receive Investment Committee Chairperson's Repmi. (Hudda)

17) Review Board of Pensions' Work Plan.

18) Consider Requests for Future Agenda Items.

19) Receive Chairperson's Report. (Gill)

20) Announcements and Communications

21) Adjourn

NOTE BOARD MEMBERS: In order to establish whether or not a quorum exists for this meeting, members are asked to call Maria Chavez in the Human Resources Department at (408) 321-5548 before 5:00p.m. on the day prior to the meeting. Thank you for your cooperation.

All public records relating to an open session item on this agenda, which are not exempt from disclosure pursuant to the California Public Records Act, that are distributed to a majority of the Board of Pensions less than 72 hours before the meeting will be available for public inspection at 3331 North First Street, San Jose, CA at the same time that the public records are distributed or made available to the Board of Pensions.

In compliance with the Americans with Disabilities Act (ADA), those reqmrmg accommodations or accessible media for this meeting should notifY Maria Chavez in the Human Resources Department 48 hours prior to the meeting at ( 408) 321-5548.

AGENDA ITEM #4

Santa Clara Valley Transportation Authority

Amalgamated Transit Union, Local 265 Pension Plan

BOARD OF PENSIONS

SANTA CLARA VALLEY TRANSPORTATION AUTHORITY

AMALGAMATED TRANSIT UNION, LOCAL 265 PENSION PLAN

· 3331 North First Street

San Jose, CA 95134

May 8, 2018

SUMMARY MINUTES

1. CALL TO ORDER at 11 :02 a.m.

ROLL CALL: Members Present: Fadal (Alternate), Gill, Hammell (Alternate), McKeon (Alternate), Ragni (Alternate), Rosenquist, Russell, Srinath

Members Absent: Hudda, Kraynick

A Quorum was present.

2. ORDERS OF THE DAY

There were no Orders Of The Day.

3. PUBLIC PRESENTATIONS

There were no Public Presentations.

CONSENT AGENDA

4. Minutes of Apri19, 2018

Board of Pensions Summary Minutes

Pagelof5 Tuesday, May 8, 2018

3331 llorth Firslllreel, Bldg. Bl • lon Jose, (A 95134·1927 • Phone 408.321.5808 • Fox 408.955.0890

5. Requests for Service Pension:

a) Theron B. Butler #3378- Option B b) Joseph Bonilla-Pfeiffer #2867 -Pre-Retirement Death Benefit c) JoAnn V. Sustrick #4433- Tetminated Vested

M/S/C (Rosenquist/Russell) to approve the Consent Agenda.

REGULAR AGENDA

6. Amalgamated Transit Union Employer Contribution Effective July 1, 2018

Resulting from Annual Valuation As of January 1, 2018

Maria Chavez, Senior Human Resources Analyst, clarified that at the last meeting, Vice-Chairperson Hudda had raised the issue that the employer's contribution as a percentage of payroll for the ATU staff should be the same as that of other A TU employees. Cheiron re-calculated the employer contribution for the ATU staff and it is reflected in this document.

M/S/C (Srinath/Russell) to Approve the Amalgamated Transit Union Employer Contribution Effective July I, 2018 Resulting from Annual Valuation As of January 1, 2018.

7. Recommendation oflnvestment Committee of Firm to Provide Actuarial Audit Services

Ms. Chavez summarized the Investment Committee's review process of the RFPs

and its recommendation.

M/S/C (Rosenquist/Fadal) to Approve the Recommendation ofinvestment Committee of Firm to Provide Actuarial Audit Services.

8. NEPC First Quarter 2018 Investment Performance Analysis

Sean Bill, Investment Program Manager, introduced Don Stracke, Senior Consultant from NEPC, who provided an overview of the SCVTA-ATU, Local 265 Pension Plan March 31, 2018 Quarterly Performance Report.

NOTE: M/S/C MEANS MOTION SECONDED AND CARRIED AND, UNLESS OTHERWISE INDICATED, MOTION PASSES UNANIMOUSLY.

Board of Pensions Summary Minutes

Page 2 of5 Tuesday, May 8, 2018

9. Report on VTA- ATU, Local265 Pension Plan Investments for Month of March2018

Mr. Bill commented that the ATU Pension Plan Fund returned -0.61% for March versus its benchmark which returned -0.45%.

He added that the ATU Spousal Medical Fund returned -1.49% for March versus its benchmark which returned -1.27%.

He discussed the effect of the diversification in a down market.

Member Rosenquist refened the Board to the page after page five of five to clarifY that the Cash allocation was not an umealized gain or loss.

10. Spousal Medical Fund and Retiree Vision!Dental Fund Reports for Quarter Ending March 31, 2018

The Spousal Medical Fund and Retiree Vision/Dental Fund Reports for Quarter Ending March 31, 2018 was received and filed.

Member Rosenquist stated he is extremely worried about the Spousal Medical Fund and the total assets. He does not believe that on a long term basis, they will be able to sustain it. He commented that he is glad they are conducting the valuation.

11. Quarterly Budget Review for Period July 1, 2017 Through March 31, 2018

The Quarterly Budget Review for Period July 1, 2017 Tlu·ough March 31, 2018

was received.

Chairperson Gill stated he requested that the employee contributions be included on the budget document. He wants to see the totals on the next budget review.

12. Update on Pending Final Benefit Payments

The Update on Pending Final Benefit Payments was received.

13. Update on Retiree/Beneficiary Reimbursement Payments Related to Medical Plan Premiums Report

The Update on Retiree/Beneficiary Reimbursement Payments Related to Medical Plan Premiums Report was received.

Board of Pensions Summary Minutes

Page 3 of 5 Tuesday, May 8, 2018

14. Update on Separated Employees' Distribution of Contributions Report

The Update on Separated Employees' Distribution of Contributions Report was

received.

15. Investment Committee Chairperson's Report

Mr. Bill summarized Wedge's presentation at the Investment Committee meeting.

There was no Investment Committee Chairperson's Repm1.

16. Board of Pensions' Work Plan

Member Rosenquist inquired about the Retiree Dental Benefits item on the work

plan.

Ms. Chavez stated that she revised the item to include the Board's action to

approve the renewal contract through to August 31, 2019. She added that they are waiting for the actuarial valuation to be conducted for ATU to decide how they

want to proceed with the benefits.

Member Rosenquist asked when they expect to have the valuation results.

Ms. Chavez responded she is working on the data to provide Cheiron. It will then

take Cheiron approximately 2 months to complete the valuations.

Member Rosenquist requested staff update the work plan to include an

approximate completion date.

Member Rosenquist asked if they expect to have the policies completed by July.

Ms. Chavez responded no.

17. Requests for Future Agenda Items

There were no Requests for Future Agenda Items.

18. Chairperson's Report

There was no Chairperson's Report.

19. Announcements and Communications

There were no Announcements and Communications.

Board ofPensions Summmy Minutes

Page 4 of5 Tuesday, May 8, 2018

20. Adjourn

On order of Chairperson Gill, there being no objection, the meeting was adjourned at 11:54 a.m.

Board of Pensions Summary Minutes

Page 5 of5

Respectfully Submitted,

Lito Sonico Human Resources Assistant Human Resources Department

Tuesday, May 8, 2018

SACRS'"

REGISTER.

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AGENDA ITEM #lOa

I

center for

UC Berkeley executive education

July 15-18, 2018

I .2

Program Schedule'

Much has changed in finance in the last 50 years; tt1is four-day program will bring you to the frontier of current in­vestment theory and practice. Tt1e program is presented on the beautiful and dynamic campus of UC Berkeley and is taught by the world renowned Finance faculty from UC Berkeley's Haas School of Business

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'f.6R ti�vt;J.!l\l$fM ... Registration & Breakfast

Claremont Hotel 7:15am - 8:15am

Claremont Hotel

Program Welcome SACRS/John O'Brien

8:30 -8:45am

Program Overview & Goals

Gregory LaBlanc 8:45-9:00am

Pension Fund and Investment Basics

Thomas Gilbert 9:00 -10 30am

10:30am Break

Return, Risk and Diversification Thomas Gilbert

11 00 -12 30pm

12:30 -1:30pm lunch

Practical Mean-Variance Analysis

Thomas Gilbert 1.30-3:00pm

3:00pm Break

CAPM and luck vs. Skill Thomas Gilbert 3:30-5 00pm

Dally Synthesis & Adjourn 5:00-5:15pm

.... ..... M<)NPAY. <: .. · •··,. \ )"Qi;�DIIY

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Claremont Hotel 7:00am-8:00am

8:00am Depart Hotel

Haas, 5400 Classroom

Financial Economics for Pensions

Forecasting Assets Cook County Case

Gregory LaBlanc 8 30- !0:15am

10:15am Break, Group Photo

Forecasting liabilities: Actuarial Science

Tt1omas Gilbert and Graham Schmidt 10:45 -12:15pm

12:15 -1:30pm lunch

Portfolio Management and Performance

Measurement Thomas Gilbert 1 30-3:00pm

3:00pm Break

Systematic Risk and Luck vs. Skill: DFA Case

Discussion Thomas Gilbert 3 30-5 OOpm

Daily Synthesis & Adjourn 5;00-5;15pm

Breakfast Claremont Hotel

7:00am-8:00am

8:00am Depart Hotel

Haas. 5400 Classroom

Disruptive Technologies: Transforming the Future

of Investment Gregory LaBlanc

830-945am

9:45am Break

Keynote Speaker Robert Reich

10:00 -11 OOam

ll:O Oam Break

Real Assets Robert Edelstein 11 30-1 OOpm

1:00-2:00pm lunch

Alternative Investment Strategies: PE Case

Discussion Gregory LaBlanc

2 00 ··3:15pm

3:15 pm Break

Alternative Investment Strategies: Hedge Funds

Gregory LaBlanc 3 30-5:00pm

Dally Synthesis & Adjourn 5:00- 5:15pm

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Breakfast Claremont Hotel

7:00am-· 8:00am

8:00am Depart Hotel

Haas, 5400 Classroom

ESG Case Discussion Norway SWF and

WalMart Case Gregory LaBlanc

8:30-945am

9:45am Break

Pension Fund Governance Panel

Gregory LaBlanc. Moderator Jennifer Urdan,

Cambridge Associates. Harvey Leiderman,

Reed Smith Janine Guilot. SASB

10 15 -12 OOpm

12:00- 1:15 pm lunch & Berkeley Technology Tour

Behavioral Finance: Overconfidence and

Expertise Gregory LaBlanc

1:15-3:15pm

3:15 pm Break

Leadership and the Role of the Trustee Arina Isaacson 3:30-5 OOpm

Final Evaluations/ Certificates

Adjourn Reception at

Claremont Hotel 5 30-6 30pm

Reception at Claremont Hotel

5 30-6 30pm

Reception at Claremont Hotel

5 30-6 30pm

f ''"'��$�\!sJi,SiY2���;; . .; SACRS Pub\lc Pensionlnves\men\ Management Program 2018 I UC Berkeley Center for Executil'e Educatron

Exceptional Educational Opportunity

SACRS Public Pension Investment

Management Program 2018

Are you ready for an immersive, profoundly impactful learning experience? Here's your chance, as you join fellow public pension trustees and retirement staff for SACRS' Public Pension Investment Management Program 2018, taking place July 15-18. Entitled 'Mod­ern Investment Theory and Practice for Retirement Systems,· the program is presented in partnership with the UC Berkeley Center for Executive Education at the Haas School of Business. This exclusive four-day program is designed for SACRS trustees and staff that aspire to better understand current investment theory and practice.

The SACRS Public Pension Investment Management Program blends the expertise of the University of California, Berkeley-Haas School of Business's distinguished faculty with a network of industry experts to teach the fundamentals of public pension management As the spotlight on public pensions grows hotter. trustees and staff are increasingly chal­lenged to grapple with alternative investments, policy and governance changes, cost pressures, and much more. After completing this program. attendees will understand the larger context and history of public pension funds and will have enhanced skills and knowledge to improve decision-making.

Over the course of the four-day program, attendees will have the opportunity to explore the predictability of asset returns, review the role of fixed income in the pension portfo­lio, take a look at how real estate fits into the pension portfolio mix, delve into private eq­uity's new landscape, study the new math of hedge funds, and more. For the complete program see the facing page.

Located in one of the most stimulating business environments in the world, the Berkeley campus is at the intersection of business and academia. Berkeley-Haas is renowned for developing innovative business leaders-individuals who redefine the business landscape by putting new ideas into action in all areas of their organizations.

This is such a rich opportunity for extended learning and presented so conveniently in a concise package, maximizing your time and effort. Education is the cornerstone of SACRS' mission. The UC Berkeley Center for Executive Education staff along with the SACRS Affiliate team is committed to the continual development and delivery of content that is current, innovative, results-driven, and responds to the needs of public pension trustees and staff. Attendees in this program will not only gain new insight and knowl­edge, but also wHI add to the core strengths of our organization-the range of expertise and the diversity of perspective found in our public pension community.

We urge you to consider participating.

Sincerely,

Dan McAUister SACRS President. San Diego County Treasurer-Tax Collector and San Diego County Employees Retirement Association Trustee

Sutema H. Peterson SACRS Administrator

� lnvesco

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MANAGEMENT'

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UC Berkeley Center for Executil"e Education I SACRS Pub::c Pens;on lrwestment 1-lanagement Program 2018 3 I

center for

UC Berkeley executive education

UC Berkeley Faculty Biographies

GREGORY LABLANC

< ,HJ < ,ouY l/\BI/\1\)t has been a

lecturer at UC Berkeley since

2004. teaching courses in Fi­

nance, Accounting, Law, and

Strategy in the Haas SchooL the

Law School (Boalt Hall) and the

department of Economics. Prior

to joining the Berkeley faculty, he

studied Economics, Business, and Law at the Whar­

ton School of the University of Pennsylvania, George

Mason University Law SchooL Duke Law SchooL and

Berkeley Law (Boalt Hall). He has previously taught

Finance, Management. Law and Economics at the

Wharton SchooL Duke University and the University

of Virginia and has been a consultant in the fields of

IP litigation and competitive intelligence. His re­

search focuses on the impact of tax policy on orga­

nizational design, capital formation, and innovation.

He has received several teaching awards and has

previously been involved in executive education pro­

grams at the Wharton School and Darden School.

JOHN O'BRIEN

J<>l lt0 o·I'I!W I'-! is Adjunct Pro­

fessor and Academic Advisor to

the Master's in Financial Engi­

neering IMFEI program at the

Haas School of Business. Prior to

joining Haas in 2000, Mr. O'Brien

was Managing Director at Credit

Suisse Asset Management re­

sponsible for the performance measurement and

risk management functions.

Prior to Credit Suisse, Mr. O'Brien was co-founder,

Chairman and CEO of Leland O'Brien Rubinstein

(LORI Associates. and Chairman of the Capital Mar­

ket Fund, and the S&P 500 SuperTrust - the first ex­

change traded fund IETFI. Prior to LOR, Mr. O'Brien

co-founded Wilshire Associates (originally operated

as O'Brien Associates), and co-developed the Wilshire

5000 common stock index (originally named and

published as the O'Brien 5000 Index).

Mr. O'Brien has received various awards, includ­

ing the Financial Analyst's Graham and Dodd Scroll

Award, the Matthew R. McArthur Award from the In­

vestment Management Consultants Association for

lifetime contributions to investment consulting. Mr.

O'Brien was named among Fortune Magazine's ten

Businessmen of the Year in 1987. Mr. O'Brien holds

a S.B. in economics from MIT. and an M.S. in opera­

tions research from UCLA. He served as a Lieutenant

in the United States Air Force.

Instructor Biographies

THOMAS GILBERT

11 :or\1,;\:, < .11 r;1 1; 1 graduated

from the Finance Ph.D. Pro­

gram at the Haas School of

Business in May 2008. Thom­

as is currently an Assistant

Professor of Finance and Busi­

ness Economics at the Mi­

chael G. Foster School of

Business. University of Washington. His research

lies in the area of information aggregation and the

role of macroeconomic announcements on stock

prices. Since 2003, he has taught parts of the Cer­

tified Investment Management Analyst program

(CIMA®) and the Berkeley Finance Series within

the Finance Executive Programs at the Haas

School of Business. He has also taught in the Un­

dergraduate, Full-Time MBA, and Evening & Week­

end MBA programs at Haas, for which he won the

Best Graduate Student Instructor Award in 2005,

2006, and 2007. He holds a Masters in Finance

from U.C. Berkeley and a Masters in Physics from

Imperial College (United Kingdom).

GRAHAM SCHMIDT, Cheiron

t,IUdl/\1/i \(Ill/ill) I (Associ­

ate- SOA, Member-AAA, Fel­

low-CCA) served as the Senior

Vice President of EFI Actuaries

for ten years before joining

Cheiron as a consulting actu­

ary upon the merger of EFl

and Cheiron in 2013. Graham

is a frequent speaker at public employer confer­

ences, on topics including actuarial funding poli­

cies, asset-liability management and GASB-related

issues. In recent years. he has spoken at national

meetings sponsored by NCPERS, the Society of

Actuaries. the Academy of Actuaries and other re­

gional organizations, such as SACRS and CAlA­

PRS.

Graham is the SACRS-appointed representative

to the California Actuarial Advisory Panel (CAAP),

and is also a member of the Academy of Actuaries

Public Plans Subcommittee and the Conference

of Consulting Actuaries Public Plans Committee,

the primary actuarial committees dealing with

public sector retirement issues in the US.

SACRS Team

BENJAMIN LAZARUS, Parametric

/v\1� 1 /1;/;Ud\ joined the firm

in 2004*. He is responsible for

developing, coordinating, and

executing the business devel­

opment and client services

plan for Parametric unique

family of products with em­

phasis on the Western region

of the United States and Canada. In addition, Ben

works on developing and managing new partner­

ships for Parametric and has presented on the use

of derivatives at different industry events. From

2015 to 2016, he was the Senior Vice President of

US Sales at Nuveen Investments in Minneapolis,

Minnesota. Ben earned a B.A. in Psychology from

the University of California, San Diego and an MBA

in Marketing and Strategic Management from the

University of Minnesota. He is a CFA® charter­

holder and a member of the CFA Society of Min­

nesota. *Reflects the year employee was hired by

The Clifton Group, which was acquired by Para­

metric Portfolio Associates® LLC on December

31, 2012

TERI NOBLE, Pathway

I.J1 �). I,J o fl! f joined Pathway in

2017 and is a senior vice presi­

dent in the California office.

She is responsible for client

servicing and business devel­

opment in the United States.

Prior to joining Pathway, Ms.

Noble served as senior vice

president, client portfolio manager, for American

Realty Advisors, and before that she served as

senior vice president at BNY ConvergEx. At both

firms, she focused on managing and cultivat­

ing consultant and institutional relationships. Ms.

Noble earned a BA from the University of Califor­

nia, Davis, and an MBA from St. Mary's College of

California and holds Financial Industry Regulatory

Authority (FINRA) Series 7, 63, and 65 licenses. She

is involved in several national and regional organi­

zations and serves as an affiliate committee mem­

ber of the State Association of County Retirement

Systems (SACRS) and as a committee member

of Women in Institutional Investments Network

(WIIlN)

UC Berkeley Center for Executive EducatiOn I SACRS Publ1c Pens'on Investment Management Pmgram 2018 [ 5 I

SACRS Team Continued

DELIA M. ROGES, lnvesco

1 H I 1/•, l/1. 1(0( d: �,, lnvesco is a

member of the lnvesco US In�

stitutional Sales and Service

Team. As managing director,

she is responsible for relation�

ship management and new

business generation for in­

stitutional investors in public

funds in the western United States. Ms. Rages has

been in the institutional investment management

business since 1991.

Prior to joining lnvesco in 2011, she was a senior

member of a boutique investment banking and

private placement firm focused on securing capi­

tal for private equity and real estate general part�

nerships. She served previously as a Senior Vice

President at Trust Company of the West where she

was responsible for advising institutional clients

and developing product solutions for new busi�

ness development. Ms. Rages serves on the Board

of Regents to Loyola Marymount University and

on the Board of Visitors at the School of Educa�

tion at LMU. She earned an MBA at the University

of Southern California and a Bachelors in Business

Administration from Loyola Marymount University.

KRISTIN V. SHOFNER, Fidelity Institutional Asset Mgmt.

IWIS'i!N (;1 IOI't�FH is Senior

Vice President Business De­

velopment at Fidelity lnstitu�

tiona[ Asset Mgmt. In this role.

she leads the development of

relationships with public pen�

sian plans.

Prior to joining Fidelity in

2013, Kristin was a Director of Institutional Sales

and Marketing at Lord Abbett & Co. Inc since June

2003. Her previous positions include serving as a

manager of Institutional Sales and Client Services

from 2000 to 2003 and as a manager research

associate from 1998 to 2000 at Asset Strategy

Consulting/lnvestorForce, Inc. She has been in the

industry since 1998. Kristin earned her bachelor of

arts degree in history and sociology from the Uni�

versity of California at Santa Barbara.

EDWARD J. HOFFMAN, Verus

ley benefits plans.

Ml{. 1101 ll./1/d� brings over 20

years of experience to his cli­

ents, providing strategic in�

vestment advice to ensure

that clients meet their long�

term investment objectives.

He serves as lead consultant

to both public and Taft�Hart�

Before joining Verus (previously known as Wurts

& Associates) in 2011. Mr. Hoffman served institu�

tiona[ clients at Legg Mason and Prudential. In ad­

dition to his client service responsibilities at Legg

Mason, he served on the asset management divi­

sion operating committee and Legg Mason Funds

valuation committee, led corporate development

initiatives including several related to the 2005

acquisition of Citigroup's asset management divi­

sion, and managed a variety of product develop�

ment initiatives. Today, his work in risk�based ad�

visory services provides an additional and valuable

perspective to his non-discretionary clients.

Mr. Hoffman earned a bachelor of science (BS)

in industrial management with college and uni­

versity honors from Carnegie Mellon University,

where he earned membership into Beta Gamma

Sigma and Mortar Board honor societies. He

earned a master's degree in business administra­

tion (MBA) from the Harvard Business School. He

has earned the Chartered Financial Analyst (CFA)

designation and is certified as a Financial Risk

Manager (FRM). He is also a member of the CFA

Society of Los Angeles and the Global Associa�

tion of Risk Professionals IGARP).

"Yes, I feel thai all staff ar1cl

hoarcf til(}fllbers should ial<e

arivaniaqe of this course.

This cow·se has been a

refresher anc! up!iale on

rnanv of ihe concepts usee!

at i.>Oanf rneetinq level. "

- Sharon Naramore,

Contra Costa County Employees

Retirement Association

Guest Speaker

ROBERT B. REICH

UOHf I< 1 li IU I( II is one of the world's leading thinkers about work and the economy. Now Chancellor's professor of Public Policy at the University of California at Berkeley, he has served under three national administrations, most recently as Secretary of labor under Bill Clinton. He also served on President Barack Obama's economic transition advisory board. In 2008. TIME magazine named him one of the ten most successful cabinet secretaries of the past century.

Reich is the author of 15 books including The Work of Nations. which has been translated into 22 languages, and several other national best sellers. He has a reputation for seeing where politics

and the economy are going before they get there. For example, in his 2007 best seller, Super­capitalism, he warned of the perils of an under-regulated and over-leveraged financial system. In his 2010 best seller, Aftershock: The Next Economy and America's Future, he predicted a tepid

recovery that would last for years, with volatile political consequences.

In his most recent book, also a national best seller, Saving Capitalism, he foresees a widening political divide not be­tween Democrats and Republicans but between establishment elites and anti-establishment populists in both parties.

Reich is the co-creator and host of the widely acclaimed 2013 documentary, Inequality for All, in which he explains the underlying forces that are shaping our economy and lays out pragmatic solutions for a broader prosperity.

Reich has a nationally-syndicated column and he also writes frequently for The Wall Street Journal, The New York Times and The Financial Times. He is a contributor to CNBC, and a frequent panelist on ABC's This Week and other television programs.

In late 2003, Reich was awarded the prestigious Vadev Havel prize. in Prague, for his original contributions to economic thinking. The Walt Street Journal has named him one of the nation's top ten thought leaders.

UC Berkeley Center for Executive Education I SACRS Pub!:c Pension Investment Management Program 2018 7 I

"Successful f?eiirerneni

Plan Man;n;urs recoqni/e

innovation as an

opportunity l.o rnaxirni/e

the creation of value·."

The strength of the Berkeley-Haas School of Business is expressed in its motto. 'Leading through In­

novation.' Successful Retirement Plan Managers recognize innovation as an opportunity to maximize

the creation of value. This program focuses on individual, team, and organizational levels of innovative

potential.

The Public Pension Investment Management Program is carefully designed to give participants the

tools. knowledge and networks they need to master their particular challenges. Bringing perspective

from their own Retirement Plans to the program. and exposed to that of their peers. participants have

the opportunity to further define and develop their knowledge and objectives under the guidance of the

same faculty who teach in Berkeley-Haas's renowned Masters of Financial Engineering program. includ­

ing top finance experts John O'Brien. Thomas Gilbert and Greg LeBlanc.

AGENDA ITEM #lOb

PRINCIPLES OF

PENSION MANAGEMENT A COURSE FOR TRUSTEES

Sponsored By

EDUCATION - COMMUNICATION - NETWORKING

California Association of Public Retirement Systems

to be held at the

The Crane, An Age-Old

Symbol Of Long Life

Pepperdine University Villa Graziadio Executive Center

August 27-30, 2018

CALIFORNIA ASSOCIATI(JN;OF P1,11JLJC RETIREMENT SYSTEMS'

CALAPRS' MISSION

/ \'::<"','\ - - - �

PRINCIPLES Of PENSION MANAGEMENT A Cc;iurse I:.or Trustees

A COURS� .FOR TRUSTEES

"CALAPRS sponsors educational forums for sharing information and exchanging ideas among Trustees and staff to enhance their ability to administer public pension benefits and manage investments consistent with their fiduciary duty."

ABOUT THE COURSE Public Pension Fund Trustees bear a heavy fiduciary burden. On a cumulative basis, California's Constitution holds our

members' 350 Trustees accountable for the stewardship of more than $450 Billion in retirement fund assets. 40 California public pension systems belong to CALAPRS. Over the past ten years, Trustees of our member retirement systems have participated in this unique training program presented exclusively for California public retirement system board members. This training focuses on the practical aspects of our Trustees' duties.

Now in its second year at the Pepperdine University Executive Center, adjacent to Pepperdine's graduate schools, CALAPRS continues to offer the same high-caliber coursework and faculty it has offered for the past twenty years on the Stanford University campus.

WHO SHOULD ATTEND? The course is for Trustees. Attendance is recommended within the first year after assuming office. Experienced Trustees will use the program as a comprehensive refresher course.

For more experienced Trustees, the Advanced Principles of Pension Management course at UCLA is suggested. This course is a pre-requisite for admission to the UCLA course.

WHY ATTEND? • To gain insight into public pension policy issues • To discuss alternative solutions to common problems • To understand the complexities involved in administering public pension plans • To appreciate the differences and similarities among California public pension plans • To network with other Trustees and pension professionals • To increase familiarity with pension terminology and concepts • To receive the ethics training required for new Trustees

FACULTY The Course will be taught by public pension practitioners, including Trustees, Consultants, Actuaries, Investment Managers, Attorneys & Administrators.

THE CURRICULUM COMMITTEE Principles of Pension Management is managed by CALAPRS' Curriculum Committee led by the course Dean: David Kehler, Retirement Administrator, Tulare County Employees' Retirement Association.

LOGISTICS California Association of Public Retirement Systems: Kerry Parker, Administrator Alison Corley, Administrator Chezka Solon, Meeting Manager

575 MARKET STREET, SUITE 2125, SAN FRANCISCO, CA 941051 P: 415.764.4860 IF: 415.764.49151 INFO@CALAPRS.ORG

CALIFORNIA ASSOCIATION OF fUBLig!{�TIREMENT SYSTEMS'

PRINCIPLES OF PENSION'MANAGEMENT A Course For:rr�stees

THE CURRICULUM Each participant must attend the full 3 days of intensive training. Sessions combine team teaching, case studies and mock board problem solving. All course materials are based on actual California public pension fund law, policies, practices and problems.

The Wednesday Evening Case Study will provide practical experience in a disability hearing. The Thursday Evening Session will consist of a 90-minute TEAM CASE STUDY to resolve significant Board of Retirement issues.

)VI_!lNDAY- AUGUST 27

6:00PM Reception & Dinner 7:30PM Pensions & Trustees- What, Who, How, Why?

TUESDAY- AUGUST 28

8:00AM What's the Big Deal About Being A Fiduciary?

5:30PM

6:30PM

How Should a Board Function?

What Benefits Do We Provide and What is the Board's Role?

What are the Key Issues in Disability Retirement? Reception & Dinner Case Study: Disability Hearing

WEDNESDAY AUGUS.L29 8:00AM How Should We Manage Our Pension Liabilities?

Investment Policy Basics

How Should We Manage Our Investment Program? 5:45PM Networking Dinner 6:30PM Case Study: Who Are Our Stakeholders and What Are Our Roles?

THURSDAY :-_�UGUST 30 8:00AM AB1234 Ethics Training for Public Fund Trustees

Course Summary 11:30 AM Certificate Luncheon and Final Course Evaluation

CERTIFICATE OF COMPLETION Participants who successfully complete the course will receive a Certificate of Completion as well as a Certificate for completion of the AB1234 Ethics in Public Service. Trustees must attend all sessions to receive a completion certificate, at the discretion of the course faculty, and attendees who do not complete the course may return the following year to make up missed sessions at no additional charge.

LOCATION & LODGING The program and lodging will be located at Villa Graziadio Executive Center, Pepperdine University, 24255 Pacific Coast Highway, Malibu, CA 90263. Lodging will be provided on campus for the nights of August 27, 28, and 29 and will be arranged by CALAPRS as part of the course for all participants. Meals will also be provided beginning with dinner on August 27 and ending with lunch on August 30.

ENROLLMENT Minimum 20, Maximum 34 Trustees.

APPLICATION & TUITION All applications must be received no later than JUNE 15.2018. Unsigned applications will be returned to the sender for signature. Accepted applicants will be notified via email the week of JUNE 18, 2018. Tuition of $3,000 (includes lodging, meals and materials) must be paid no later than AUGUST 1, 2018.

575 MARKET STREET, SUITE 2125, SAN FRANCISCO, CA 941051 P: 415.764.4860 IF: 415.764.4915IINFO@CALAPRS.ORG

CALIFORNIA ASSOCiATION OF P!!,!lLIC RET IREM ENT SYSTEMS'

PRINCIPLEs oF PEI.fs}oN MANAGEMENT A Cdurse �or Trustees EDUCATION • COMMUNICATION • NETWORKING

APPLICATION FOR ENROLLMENTZ018

APPLICATIONS WITH BOTH REQUIRED SIGNATURES MUST BE RECEIVED BY JUNE 15, 2018.

Applicants must be trustees of a California public employee pension system. Attendance is recommended within

the first year after assuming office. Experienced trustees will use the program as a comprehensive refresher course. Each system may enroll one Trustee as a "Delegate" and designate one additional Trustee as "1st Alternate"

with the remainder as "2nd Alternate". Delegates will be admitted first. If vacancies remain, 1st Alternates will be

admitted in the order received, followed by 2nd Alternates. All applicants will be notified the week of june 18.

Applicant Information

Trustee's Name (for certificate/name badge): _____________________________ _

Retirement System:_

Trustee Type: D Elected D Appointed D Ex-Officio Date Became a Trustee:, ______ Date Term Expires: _ ___ _

Trustee's Mailing Address: ____________________________________ _

Trustee's Phone:, _____________ Trustees' Email:, _____________________ _

Administrative Contact (name, email):. ________________________________ _

Emergency Contact (name, phon.,}: ___________ _ _ _ _ __ ________________ _____ ............ -........... - ........................ ______ _____ __

Dietary Restrictions (if any}: ___________________________________ _

BIOGRAPHY: Email Trustee's biog1·aphy (�150 words) to register@calaprs.org for printing in the attendee binder.

Applicant A gr eem en t

If admitted, I agree to attend the program in full and acknowledge that missing one or more sessions may result in forfeiture of my Certificate of Completion, as determined by the Faculty.

Trustee Signature (required} ______________________________ Date�: _ _ _ _

Administrator Approval

Applicant Designation: D Delegate D 1" Alternate D 2"d Alternate

Administrator Name: ____________________ Email: _ ______________ _

Administrator Signature (required}: _________________________________ _

Tuition Payment

Tuition of$3,000 must be paid in full by August 1, 2018 and includes all meals, materials, and lodging. Payable by check only (no credit cards) to "CALAPRS". This application form serves as an invoice. No additional invoice will be sent. Cancellation refunds may be provided to the extent that costs are not incurred by CALAPRS.

On campus lodging is mandatory for all participants. CALAPRS will make the reservations and payment for the nights of August 27, 28, and 29 at the Villa Graziadio Executive Center on the Pepperdine campus.

... If. due to a disability, you hove any special needs, col/ 415�764·4860 to let us L!fiJ know. We will do our best to accommodate them.

RETURN COMPLETED APPLICATION BY JUNE 15, 2018

Mail, email or fax form and payment to CALAPRS 575 Market Street, Suite 2125 San Francisco, CA 94105 Phone: 415-764-4860 Fax: 415-764-4915 register@calaprs.org www.calaprs.org

AMALGAMATED TRANSIT UNION

AFL·CIO

Ms. Maria Chavez

LOCAL265 1590 La Pradera Drive

CAMPBELL, CALIFORNIA 95008-1533

PHONE (408) 874-0900 �;.x (408) 874·0907 .

�··

June4, 2018

Human Resources - Retirement Services Santa Clara Valley Transportation Authority 3331 North First Street, Building B San Jose, CA 95134-1906

Subject: Temporary Alternate Pension Board Investment Committee Member

Dear Ms. Chavez:

AGENDA ITEM #11

1902 Charter Seal -

1bis letter is to inform you effective July I, 2018, Michael McKeon, #13353, will serve as the temporary Alternate Member for the VT N ATU Pension Board Investment Committee, until Satnarn Gill, #5468, returns to work.

Please see that all documents and notices pertaining to the Pension Board Investment Committee is forwarded to Michael McKeon.

If you have any questions, please do not hesitate to call me at (408) 874-0900, ext 214.

cc: Michael McKeon Satnam Gill

Sincerely,

�of-� TERRY L. RUSSELL President and Business Agent

AGENDA ITEM #12

,&' · Santa Clara Val ley Trans portation Authority

P1'�. · ��A_m_a�lg_a _m_a _te�d�T�ra_n_si�t�U�n�io -n�, �Lo-c�ai�2�6�5�P�e-n�si�o�n�P�Ia_n _·--�

BOARD MEMORANDUM ACTION

TO:

FROM:

ATU Board of Pensions

Sean P.Bill L /i))_ Investment Program Manager

May25,2018

DISCUSSION INFO X

SUBJECT: Repoti on SCVTA-ATU, Local265 Pension Plan Investments for the month of April2018.

FOR INFORMATION ONLY

BACKGROUND:

SCVTA-ATU, Local265 Pension funds are invested in accordance with the asset allocation strategies described in the Investment Policy amended June 10, 2014.

DISCUSSION: .

General Economic Conditions

Headline consunter prices, as measnred by the consunter price index (CPI), rose 2.5% year over year· as of April20!8. Core CPI, which excludes volatile food and energy prices increased at a rate of2.1% year over year as of April2018. The Federal Reserve continues to target an inflation rate of2.00%.

The unemployment rate in the San Jose-Snrmyvale-Santa Clara MSA was 2.4 percent in April2018,. down from a revised 2. 7 percent in March 2018, and below the year-ago estimate of 3.2 percent. This compares with an unadjusted unemployment rate of 3.8 percent for California and 3.7 percent for the nation dnring the same period.

General Market Conditions

The S&P 500 Index retnrned 0.38% in April2018. Large cap stocks retumed 0.34% and small cap stocks retnrned 0.86%. Within the large cap space, growth.stocks outperformed value stocks, retnrning 0.35% and 0.33%, respectively. The top-performing sectors were energy, consunter discretionary and health care. The worst-performing sectors were technology, producer dnrables, and consumer staples ..

The Bm·clays Aggregate index retnrned -0.74% in April2018. Investment grade corporate debt returned -0.90% and high yield retnrned +0.70%.

In global markets, the United States 1 0-year govemment bond yield ended the month at 2.95%, up from2.74 at the end of March. The Enropean 10-year government bond yield ended the month at 0.56% and the Japanese 1 0-year govermnent bond yield finished April at 0.06%.

3331 llorlh firs! llreel, Bldg. Bl • Son Jose, CA 95134·1927 • Phone 408.321.5808 ·fox 408.955.0890

SCVTA-ATU, Local 265 Pension Plan Assets

It is the policy of the SCVTA-ATU Board of Pensions to have a well-managed investment program that provides for the financial needs of the pension plan and allows the investments to be

. appropriately diversified and prudently invested to protect the safety of the principal while maintaining a reasonable retnru. Assets are invested within the following investment guidelines:

Asset Allocation ·Range Target Actual Domestic Large-Cap Value 10-20% 15% 15% .

Domestic Lai:ge-Cap Index 5-15% 10%. 10%

Domestic Small-Cap Value 5-15% .10% 10%

Int'l Equity Developed Markets 8-18% 13% 14%

Int'l Equity Emerging Markets 0-10% 5% 5%

US Core Real Estate 5-15% 10% 10%

Diversified Real Assets 0-10% 5% 5%

Domestic Fixed Income 15-30% 22% 22%

Absolute Retum 4-14% 9% 9%

Cash 0-05% 1% 0%

The SCVTA-ATU Pension Plan composite portfolio outperf01med its policy benchmark in April. 2018 by 0.13%. The current yield of the Dodge & Cox Fixed Income portfolio is 3.97% and the cuiTent effective duration is 4.62 years.

Market performance for each money manager is summarized in the following table:

Page 2 of5

Investment Performance as of April2018 I · Asset Class Fund Manager Apr 3 Mo Y-T-D I Yr 3 Yr 5 Yr 10 Yr I- T-D

Large-Cap Value Boston Partners 0.92% -5.74% -0.63% 14.35% 9.04% 12.02% 9.89% 9.68% Stocl<s Russell 1000 Value Index 0.33% -6.15% -2.52% 7.50% 7.64% 10.52% 7.30% 6.95%

Large-Cap Index !State Street o.38% 1 -5.78% 1 -o.4o% 1 13.20% 1 10.54% 12.92% I 9.02% 1 7.12% · �&P 500 Index I o.38% 1 -5.78% I -0.38% )13.26% I 10.58% )12.97% I 9.P2% I 7.03%

Smaii-Cap Value. redge 5 0.16% -4.99% �2.81% 2.11%

Stocks- · · · · - · -

Russell 2000 Value Index 1.73% -2.16% -0.95% 6.53%

nt'l Equity Dev. MFs• 2.00% -3.10% 1.01% 19.48% l\1_arkets -Growth '

MSCI AC World ex-US Growth Index 0.75% -5.07% -0.13% 17.40%

Emerging Market !State StreetEM7 I -1.49% I -7.28% o.42% 1 20.99% I MCSI World Emerging Market I -0.44% I -6.so% o.97% 1 21.n% I . US Core Real Estatc)!JBS 8 1.89% 7.08% NCREIF NFI-ODCE 2.20% 8.07%

Diversified Real 'Principal Group 2,09% -1.34% --1.34% Assets Diversified Real Assets Strategic Index 2.04% -1.50% --1.50%

Fixed Income !Dodge & Cox -0.48% -1.00% -1.47% 1.04% !sarclays US Aggregate Bond Index -0.74% -1.05% -2.19% -0.32%

Absolute Return !Lighthouse 9 0.10% -0.75% 0.74% 4.10% HFRI FoF Index 0.29% -1.72% 0.53% 5.34%

Absolute Return )Sky Bridge 9 I 1.o2% I 2.16% I 3.93% I 9.66% I HFRI FoF Index

Composite Portfolio Retums 10

IPo!icy Benchmark Returns

I 0.29% I -1.72%

I o.86% -2.53% I o.73% -2.62%

0.53% I 5.34% I

0.28% 9.61% -0.35% ! 8.17%

5 Funded April!, 2009. Prior manager was Brandywihe with the same benchmark.

8.02% 10.98%

9.27% ·10.35%

9.14% 7.81%

6.01% 6.35%

I

8.39% 9.73% 9.99% 11.43%

2.59% 2.82% 1.08% 1.47%

6.84% I 8.05% 6.16% 1 7.22%

6 Funded December 14, 2007. Prior managers were Putnam and Fidelity with MSCI EAFE as their benchmark. 7 Initially funded June 30, 2016

8.97%

8.46%

5.59%

2.76%

I I

--

4.92% 3.58%

I I

7.95% 6.05%

8 Initially funded July 1, 2010. UBS Realty Investors LLC with NCREIF NFIODCE as their benchmark. Report 45 days after quarter ended. 9Funded January 28, 2016 HlJnvestment performances by prior managers are included in composite returns and historCal policy benchmark returns.

9.94%

9.62%

5.20%

2.31%

I 21.45% 22.44%

10.71% 12.63%

5.94% 4.55%

4.05% 5.13%

I 6.53% 5.13%

8.26% 6.13%

DODGE & COX- The Fixed Income portfolio man�trut'perf6nii:ed its benchmark in April2018 by ·

0.26%. The miin contributor to relative performance was the portfolios' shorter relative duration. Security selection within credit also contributed as several holdings outperfmmed, and the portfolios' . nominal yield (ldvantage also benefited relat.\ve returns.

Page 3 of5

BOSTON PARTNERS -The Domestic Large Cap Value Equity manager outperformed its policy benchmark in April2018 by 0.59%. An overweight position and stock selection-in the energy sector and an underweight position in the consumer non-durables sector contributed to relative outperformance.

WEDGE - The Domestic Small Cap Value Equity manager underperformed its policy benchmark in April2018 by 1.57%. Stock selection in the consumer durables and basic materials sectors and an overweight position to the capital goods sector all contributed to the relative uuderperformance for the month.

·

MFS -The International Equity manager outperformed its policy benchmark in April20l8 by 1.24%. Stock selection within retail, financial services, technology, leisure together with an underweight to technology contributed to relative performance.

PRINCIPAL GROUP -The Diversified Real Asset Manager outperformed its policy benchmark in April20 18 by 0.05%. Allocations to the commodities and natural resource sectors both contributed to

. relative outperfmmance. These factors were partially offset by un-hedged foreign currency exposure.

LIGHTHOUSE- The Absolute Return manager uuderperformed its policy benchmark in April2018 by 0.19%. International equity and quantitative strategies were the primary drivers of relative uuderperformance for the month.

SKYBRIDGE-The Absolute Return manager outpeifmmed its policy benchmark by 0.73% in April 2018. Relative value and structured credit strategies both contributed to relative outperformance for the month.

A 7.00% rate of return assumption is used in the auuual actuarial analysis for the ATU Pension Plan. The results of the actuarial analysis determine VIA's auuual contribution rates. The auuual returns for the ATU Pension Plan portfolio have been equivalent to or exceeded the 7.00% assumed rate of return 11 out of 15 years.

Historic Portfolio Performance (calendar year) for the last fifteen calendar years: .

Year !Performance Year !Performance Year !Performance �003

-

121.5%. 2008 -19.7% 2013 16.5% 2004 12.2% ?009 25.7% 2014 7.2% 2005 7.2% 2010 14.0% 2015 0.5% 2006 14.5% ?.011 1.7% ?016 9.2% ?007 5.8% 2012 14.5% 2017 14.65%

Page 4 of 5

ATU Spousal Medical Trust Fund, Dental, and Vision Plan

Asset allocation for the ATU Spousal Medical Trust Fund (including funds for dental and vision plans) is provided for in the SCVTA-ATU Pension Plan Investment Policy.

Asset Allocation Domestic Fixed Income Domestic Large Cap Index Cash

Range 30-50% 50-70%

0-5%

Target 38% 60% 2%

Actual 38% 60% 2%

The ATU Spousal Medical Trust Fund composite portfolio outperformed its policy benchmark in the current month by 0.13%. The current yield for the fixed income portfolio is 3.97% and the current effective duration is 4.62 years.

Market performance for each money manager is summarized in the following table:

nvestment Performance as of Anril2018 !Asset Class !Fund Manager Anr 3Mo Y-T-D 1 Yr 3Yr 5Yr 10Yr I-T-D

Large-Can IndexiState Street 0.38% -5.78% -0.40% 13.20% 10.54%. 12.92% 9.02% 8.85% is'&P 500 Index 0.38% -5.78% -0.38% 13.26% 10.58% 12.97% 9.02% 8.85%

Fixed Income !Dodl!e & Cox -0.44% -0.97% -1.31% 1.12% 2.20% 2.52% 4.72% 4.57% Barc/ays US A!<f(l'B!<ale Bond Index -0.74% -1.05% -2.19% -0.32% 1.08% 1.47% 3.58% 3.84%

Coml'_osite Portfolio Returns o.06% I -3.98% I -0.75% I 8.93% 7.60% I 9.19% 8.20% 7.77% Policy Benchmark Returns -0.07% -3.89% I -1.03% 7.74% I 6.83% I 8.37% I 7.10% I 7.06

DODGE & COX- The Fixed Income portfolio manager outperformed its benchmark in April2018 by 0.30%. The main contributor to relative performance was the portfolios' shorter relative duration. Security selection within credit also contributed as several holdings outperformed, and the portfolios' nominal yield advantage also benefited relative returns.

Other Data

The valuation of VTA's securities is provided by Interactive Data Corporation (IDC), Men-ill Lynch · Secmities Pricing Service and Bloomberg Generic Pricing Service. These fmns are the leading

providers of global S'elfilri'ties data. They offer the largest information databases with cun·ent and historical prices on securities traded in all major markets.

This report complies with VTA's adopted investment policies. Based on budgeted revenues and expenditures as well as actual transfers to/from reserves, there are sufficient funds available to meet expenditure requirements for the six months ending October 31, 2018.

Page 5 of 5

ATU PENSION PLAN INVESTMENT PORTFOLIO PERFORMANCE MONEY MANAGERS' TOTAL MARKET RETURN- TRADE DATE

FOR THE MONTH OF APRIL 2018

SUMMARY:. April 30, 2018 Total Market Value Apr Total Market Return Total Market Return

Description

1 - VTAIATU Pension Fund-Fixed Income

2 - VTA/ATU Pension Fund-Stock Large CapValue 3 - VTA/ATU Pension Fund-State Street -Index 4 - VT A/ATU Pension Fund-Stock Small Cap Value 5 - VT AIATU Pension Fund- lnt'l - Equity Growth 6 - VTAIATU Pension Fund- Emerging Markets S. Street

7 - VTA/ATU Pension Fund- US Core Real Estate (2) 8 - VT A/ATU Pension Fund- Pricipal Group Real Assets 9 " VTA/ATU Pension Fund- Sky Bridge (2) 10- VTA/ATU Pension Fund- Lighthouse (2) 11- VTAIATU Pension Fund- Cash

Total Pension Fund

Legend:

(1) Total includes contributions I withdrawals made during current month.

(2) Performance reported quarterly.

(1) Prior

Month

126,839,998 85,850,638 57,759,758 56,131,686 74,398,012 30,129,184 53,008,857 28,320,263 24,823,631 24,480,395

3,247,907

564,990,329

Current Month

126,226,809 86,638,072 57,982,001 56,232,069 75,886,763 29,679,495 53,896,648 28,912,210 25,029,933 24,351,570

(482,921)

564,352,649

§Unrealized Gain/Loss

(613, 189) 787,434 222,243 100,383

1,488,751 (449,689)

VTA Benchmark %Unrealized Calendar Calendar

Gain/Loss YIQ YTD

-0.48% -1.47% -2.19% 0.92% -0.63% -2.52% 0.38% -0.40% -0.38% 0.16% -2.81% -0.95% 2.00% 1.01% -0.13%

-1.49% 0.42% 0.97%

ATU SPOUSAL MEDICAL PLAN INVESTMENT PORTFOLIO! PERFORMANCE

MONEY MANAGERS' TOTAL MARKET. RETURN- TRADE DATE

FOR THE MONTH OF APRIL 2018

SUMMARY: April30, 2018

Description

1 - ATU Spousal Med Fund- Dodge & Cox- Index 2- ATU Spousal Med Fund-State Street- Index 3 - ATU Spousal Med Fund-Cash

Total ATU Spousal Funds

Legend: (1) Total includes contributions /withdrawals made during current month.

·•.

Total Market Value

(1) f.rlQr Month

11,050,894 17,417,202

551,484

29,019,580

Current Month

11,001,815 17,484,218

551,226

29,037,259

'

Apr Total Market Return

�Unrealized %Unrealized Gain/Loss Gain/Loss

(49,079) -0.44% 67,016 0.38%

Total Market Return

ill Benchmark Calendar Calendar

YTD YTD

-1.31% -2.19% -0.40% -0.38%

ATU P ENSION PlAN INV ESTMENT PORTFOLIO APR!l30, 2018

BREAKDOWN BY FUND MARKE T VALUE

LIGHTHOUSE-$24,351,570

PRINCIPAL REAL ASSETS· $28,912,210

STATE STREET EM- $29,679,495

---·-·-··--------·-----·--------

- ($482,921)

-$57,982,001

MFS- $75,886,763

UBS-$53,896,648

·--------·-.. ·--·-------·---

600

580

560

540

520

500

Millions$

ATU PENSION PLAN INVESTMENT PORTFOLIO

PORTFOLIO TREND -TOTAL MARKET VALUE OF ALL MONEY MANAGERS

May-17 Jun-1T Jul-17 ' Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18

8.00%

7.00%

6.00%

$.00%

4.00%

3.00%

2.00%

1.00%

0.00%

�1.00% Apr-17

-2.00%

-3.00%

-4.00%

-5.00%

-6.00%

-7.00%

-8.00%

-9.00%

Historical Retums

Santa Clara Valley Transportation Authority ATU MONEY MANAGERS Performance

Portfolio Monthly Review- ATU Composite vs. Benchmarks

May-17 Jun-17 Jul-17 . Aug-17

YTD Geometric May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 2018 Annualized lTD

MONTHLY PERFORMANCE DATA

ATU 1.13% 0.78% 1.32% 0.25% 1.71% 1.48% 1.20% 1.09% 2.88% -2.77% -0.61% 0.86% 0.28% 8.26%

BENCHMARK 1.00% 0.74% 1.49% 0.23% 1.54% 1.03%, 1.24% 0.97% 2.34% -2.86% -0.48% 0.73o/; -0.35% 6.13% .

INVESTMENT OBJECTIVE OF VTA!ATU MONEY MANAGERS IS TO OUTPERFORM BROAD MARKET BENCHMARKS, NET OF FEES.

STARTING JANUARY 2010 THE COMPOSITE BENCHMARK CALCULATION WILL BE BASED ON THE INVESTMENT POLICY TARGET ALLOCATION

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%

-200% May-17

--4.00%

-6.00%

-8.00%

-10.00%

-12.00%

-14.00%

-16.00%

-18.00%

Historical Returns

MONTHLY PERFORMANCE C

Boston

Russell 1000 Value

Santa Clara Valley Transportation Authority BOSTON PARTNERS Performance

ATU PENSION LARGE- CAP VALUE Money Manager vs. Benchmark

May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18

0.31% 2.17% 1.42% 0.21% 3.14% 1.98% 2.91% 2.06% 5.43%

-0.10% 1.63% 1.33% "1.16% 2.96% 0.73% 3.06% 1.46% 3.87%

Feb-18 Mar-18 Apr-18

-4.13% -2.58% 0.92%

-4.78% -1.76% 0.33%

YTD Geometric 2018 · <\nnualized lTD

-0.63% 9.68%

-2.52% 6.95%

INVESTMENT OBJECTIVE OF DOMESTIC LARGE CAP VALUE EQUITY MANAGER IS TO OUTPERFORM BROAD MARKET (BENCHMARK), NET OF FEES. EFFECTIVED JULY 2006, RUSSELL 1000 VALUE REPLACED S and P 500 BARRANALUE.

Funded Equity Money Managers- Sept. 4, 1998

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%

-2.00%

-4.00%

-6.00%

-8.00%

-10.00%

-12.00%

Historical Returns

Santa Clara Valley Transportation Authority STATE STREET GLOBAL ADVISORS Performance

ATU PENSION LARGE- CAP INDEX Money Manager vs. Benchmark

May-17 Jun-17 Jul-17 Aug-17

May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 , Feb-18

MONTHLY PERFORMANCE DATA State Street 1.39% 0.63% 2.05% 0.30% 2.06% 2.33% 3.06% 1.11% .5.71% -3.69%

S&P 500 1.41% 0.62% 2.06% 0.31% 2.06% 2.33% 3.07% 1.11% 5.73% -3.69%

m. State Street

a Benchmark

Mar-18 Apr-18,

-2.54% 0.38%

-2.54% 0.38%,

Apr-18

YTD Geometric 2018 �nnualized lTD

-0.40% 7.12%

-0.38% 7.03%

INVESTMENT OBJECTIVE OF DOMESTIC LARGE CAP VALUE INDEX MANAGER IS TO MIMIC THE BROAD MARKET PERFORMANCE OF Sand P 500.

Funded Equity Money Managers- Sept. 4, 1998

16.00%.

12.00%

8.000/c

4.00%

0.00%

-4.00%

-8.00%

-12.00%

-16.00%

-20.00%

Historical Returns

MONTHLY PERFORMANCE DATA WEDGE

Russell 2000 Value

Santa Clara Valley Transportation Authority WEDGE Performance

ATU PENSION SMALL- CAP VALUE Money Manager vs. Benchmark

Jul-17 Dec-17

"WEDGE

• Benchmark

May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct�17 Nov-17 Dec-17 Jan-18

-2.48% 2.09% -0.08% -3.22% 6.84% 1.17% 1.72% -0.75% 2.30%

-3.11% 3.50% 0.63% -2.46% 7.08% 0.13% 2.89% -0.95% 1.23%

YTD Geometric Feb-18 Mar-18 Apr-18 2018 �nnualized lTD

-6.00% 0.91% 0.16% -2.81% 9.94%

-5.00% 1.24% 1.73% -0.95% 9.62%

INVESTMENT OBJECTIVE OF DOMESTIC SMALL CAP VALUE EQUITY MANAGER IS TO OUTPERFORM BROAD MARKET- RUSSELL 2000 VALUE, NET OF FEES.

Funded Brandywine- Sept. 1998 Funded WEDGE April 2009

14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%

-2.00%

-4.00%

-6.00%

-8.00%

-10.00%

-12.00%

-14.00%

-16.00%

-18.00%

-20.00%

-22.00%

May-17

Santa Clara Valley Transportation Authority MFS Performance

ATU PENSION INTERNATIONAL EQUITY Money Manager vs. Benchmark

Jun-17

"MFS

lllll Benchmark

Historical Returns YTD Geometric May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18· 2018 mualized lTD

MONTHLY PERFORMANCE [ 5.68% 0.30% 1.92% 1.10% "2.04% 2.89% 1.16% 1.97% 4.24% -4.23% -0.80% 2.00% MFS

1.01%

MSCI AC World 4.45% 0.08% 3.46% 1.00% 1.75% 2.40% 1.10% 2.16% 521% -4.47% -1.37% 0.75% -0.13%

INVESTMENT OBJECTIVE OF INTL. EQUITY MANAGER IS TO OUTPERFORM THE BROAD MARKET PERFORMANCE OF MSCI EAFE INDEX, NET OF FEES. Funded Putnam Equity Index- May 2000 Funded Pyramis Equity Index - Febnuary 2004 Funded MFS Equity Index - D ecember 14, 2007

5.20%

2.31%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%

-2.00%

-4.00%

-6.00%

-8.00%

-10.00%

-12.00%

-14.00%

-16.00%

-18.00%

Historical Returns

State Street EM

Emerging Mari<et

·Santa Clara Valley Transportation Authority STATE STREET EM Performance

ATU PENSION Money Manager vs. Benchmark

May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17

YTD Geometric

May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 2018 Ialized lTD

.2.92% 1.03% 5.93% 2.28% -0.43% 3.40% 0.42% 3.44% 8.30% -5.24% -0.67% -1.49% 0.42% 21.45%

2.96% 1.01% 5.96% 2.23% -0.40% 3.51% 0.20% 3.59% 8.33% -4.61% -1.86% -0.44% 0.97% 22.44%

5.00%

4.00%

3.00%

2.00%

1.00%

0.00"/o May-17

-1.00%

-2.00%

-3.00"/o

Historical Returns

MONTHLY PERFORMANCE DATA

Dodge & Cox

Barclays Capital US Aggregate

Santa Clara Valley Transportation Authority DODGE & COX Performance

ATU PENSION FIXED INCOME Money Manager vs. Benchmark

Oct-17 Nov-17

May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18

0.75% 0.07% 0.75% 0.56% -0.07% 0.12% -0.07% 0.42% -0.48%

0.77% -0.10% 0.43% 0.90% -0.48% 0.06% -0.13% 0.46% -1.15%

Ell Dodge&Cox II Benchmark

YTD Geometr'1c Feb-18 Mar-18 Apr-18 2018 Annualized lTD

-0.72% 0.20% -0.48% -1.47% 5.94%

-0.95% 0.64% -0.74% -2.19% 4.55%

INVESTMENT OBJECTIVE OF DOMESTIC FIXED INCOME (PENSION) MANAGER IS TO OUTPERFORM BROAD MARKET (BARCLAYS AGGREGATE BOND INDEX), NET OF FEES ..

Funded Fixed Income Money Managers -Oct. 1, 1998

Historical Returns

Lighthouse

HFRI-FOF

Santa Clara Valley Transportation Authority LIGHTHOUSE Performance

ATU PENSION Money Manager vs. Benchmark

YTD Geometric May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 2018 Annualized lTD

0.23% 0.27% 0.65% 0.35% 0.10% 1.40% -0.30% 0.60% 1.50% -0.25% -0.60% 0.10% 0.74% 4.05%

0.32% -0.02% 1.02% 0.83% 0.44% 1.15% -0.02% 0.92% 2.33% -1.55% -0.46% 0.29% 0.53% 5.13%

-4.00%

Historical Returns

Sky Bridge

HFRI-FOF

Santa Clara Valley Transportation Authority SKY BRIDGE Performance

ATU PENSION Money Manager vs. Benchmark

May-17 Jun-17 Jul-17 Aug-17 Sepc17 Oct-17 Nov-17 Dec-17 Jan-18

0.28% 0.40% 0.88% 0.49% 0.99% 1.04% 0.40% 0.91% 1.73%

0.32% -0.02% 1.02% 0.83% 0.44% 1.15% -0.02% 0.92% 2.33%

YTD Geometric Feb-18 Mar-18 Apr-18 2018 Annualized lTD

.

0.83% 0.30% 1.02% 3.93% 6.53%

-1.55% -0.46% 0.29% 0.53% 5.13%

Name of course- --- .. Ethics Training Completion Date .. .. *Hours Required Every Two Years Saltzman & Johnson Law Corporation-Fiduciary Duties of a Member of the Board of Pensions: Training Module No. Four: Investment Issues NEPC 2018 Public Funds Workshop NEPC Qrtly Report NEPC Themes & Opportunities Presentation Lighthouse Presentation The Pension Bridge Conference Wedge Capital Management Outlook NEPC Qrtly Report NEPC Annual Investment Conference CALAPRS Trustees' Roundtable

Hours Completed· Calendar Year 2018 ·· • · . Hours Completed· Calendar Year 2017 . . ·

Course Date

Jan. 9, 2018

Jan. 21·23, 2018

. ·· .

February 13, 2018

March 13, 2018

April9, 2018

April 10·11, 2018

May 1, 2018

MayS, 2018

May 14·15, 2018

June 8, 2018

···. > . .. .. ..............

.. . .. ·· ·

·

Satnam Gill 2/17/2017

36

0.37

0.45

0.6

0.58

16

0.42

0.57

. • 18.99 •. ··•••·

..···. 62.50 . ...

SCVTA-ATU, Local 265 Pension Plan

Board of Pensions

Education Policy Compliance Report

January 1, 2018 through December 31, 2018

AliHudda Ted Kraynick Jerry Rosencjulst TerrY Russell 11/16/2016 12/3/2016 11/20/2016 2/22/2017

36 36 36 36

0.37 0.37 0.37 0.37

12

0.45 0.45 0.45

0.6 0.6 0.6 0.27

0.58 0.58 0.58

16 16

0.42 0.42 0.42

0.57 0.57

15

6 6

'

24.42 7.84 .

..•. •··••·• 18.12 ····. 29.65. I•· 19,63 . •. 6L79 . • < . . · . 53.11 .··.· • . . . · 82.74 •..•.•

*All Board Members and Alternate Members Will rece1ve a mm1mum of 36 hours of education every two years.

Raj Srlnath 11/16/2016

36

0.37

0.45

0.6

0.58

0.42

0.57

15

17.99 •. •

18,92

Sylvester Fadal 11/16/2016

36

0.37

0.45

0.6

0.58

0.57

15

. .. 17;57 54.40

Khryshtal Hammell

. . .

11/1/2016 .•. 36

0.37

0.45

0.57

15

16.39

. .••..•... 31.47 . . .· .· .

AGENDA ITEM #13

Michael McKeon 6/7/2017

36

0.37

0.45

0.6

0.58

16

0.57

6

•. ·>24;57 ... . · . . .. · . .•. 88.35

. .

Grace Ragni 11/28/2016

36

0.37

12

0.45

0.6

0.58

0.57

•· 14.57 •· . 37.27

Updated as of 12/1/2017

Retirement

Name ld# Date

Baraona, James 1397 4/1/2018 Dolgonosov, Boris 10410 4/9/2018 Jarosz, Richard 8099 4/1/2018 Najera, Ronnie 1 1341 3/30/2018 Smith, Oliver 12253 4/1/2018 Bonilla-Pfeiffer, Joseph 2867 1/1/2018 Butler, Theron 3378 5/1/2018

Page 1

Final Benefit Calculations Report Supplement ATUPending

RelJremem Services Received

Date Final Payoff Approved Information

4/9/2018 4/9/2018 4/9/2018 I

4/9/2018 4/9/2018 5/8/2018 5/8/2018

Status

.

AGENDA ITEM #14

Retirement Services 6/5/2018

Pers.No.

AGENDA ITEM #15

Separated Employees' Distribution of Contributions Report as of June 1, 2018

Ke1moursement Amount

Last·name First name Initial Hire Date Separation Date Sent Reimbursed

No Distributions Issued in May. '·

Total Reimbursed $

Page 1 Retirement Services 6/4/2018

New Complete

Board of Pensions

Workplan

Board & Committee Items Benefit Issues

Retiree Dental Benefits (Delta Dental contract expires 8/31120 I 9)

Contracted Services

Cheiron - Annual Actuarial ValuaTion (ER Rate FY 2019) Actuarial Audit RFP - Selection of Firm Cheiron - Spousal Medical Fund and Retiree Vision/Dental Fund Valuation(As ofJanuoryl,2018) ·

Continuous

Quarterly Budget Review Monthlylnvestrnent Renort Monthly Investment CommitteeReoort �usa! Medical Fund _Quarterly Report Retiree Vision/Dental Fund Quarterly Report NEPC Quarterly Investment Performance Analysis!NEPC Training Audited Financial Statements (FY 2018)

Misce1Ianeous & Ono-oinl!

Investor Protection & Securities Monitoring Services Final Benefit Payments Separated Employees' Distribution of Contributions Retiree/Beneficiary Reimbursement Payments Annual fuoousal Medical Fund Certification (20 I 8) Annual Social Security Earnings Verification (20 I 6) Elect Chairperson & Vice-Chairperson Eff I/19 Educiltion Policy Compliance Report

Policies/Procedures

Implementation of the Califonria Public Employees' Pension Reform Act

Disputes Under Section 2.4 Of the Pension Plan Procedure

Un-Retiring ATU Retirees After Board of Pensions Approval

Medical Re-Evaluations - Must be resolved during contract negotiations

Responsibility

Russell

Schmidt Hudda

Schmidt

Chavez Bill Hudda Hudda Hudda Bill Hudda

Hudda Chavez Chavez Chavez Chavez Chavez

Chavez

Pension Plan Policies Sub-Committee Pension Plan Policies Sub�Committee PensiOn Plan Pohe1es Sub-Committee PensiOn Plan Policies Sub-Committee

Retirement Services

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AGENDA ITEM #17

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6/5/2018